Engineering Recruitment in the Age of AI: Hire Smart And Spot Red Flags

Julia Koblischke
Jul 14
9 min read

Updated: 2 days ago

AI and automation are no longer optional. Morgan Stanley saved 280,000 working hours through AI integration, and Amazon’s warehouses are on the verge of housing more robots than people. No company can afford to fall behind. We can all agree that smart engineering recruitment is the key to building your AI capabilities, but not every engineer has the skills you need, and the wrong hire can set you back.

How to hire engineers, and how do you know who’s really an AI expert?

In this article, we break down the current situation in the market, how to attract engineers, hiring mistakes to avoid, and insider tips from experts in engineering recruitment services.

Current State in Engineering Recruitment

Recruitment of engineering professionals in 2025 is defined by contradictions and soaring pay gaps, with AI-skilled engineers earning up to eight times more than their non-AI peers. High salaries and a small talent pool are making U.S. companies scan Europe, trying to hire top engineers at a fraction of the cost. Here are the details:

1. Demand is polarized

For instance, traditional software developer roles have declined sharply since 2018, but the appetite for AI and cybersecurity talent is soaring. Reports show software developer employment in the U.S. is lower than it was seven years ago, yet demand for AI engineers has exploded. (1)

Read more about IT specialists Recruitment.

According to hiring statistics, 69% of HR leaders say that AI-skilled roles are harder to fill than other tech positions.

Recruitment Statistics: AI-skilled candidates

2. AI scientists earn total packages of $500,000–$2 million

The battle to recruit top AI researchers and engineers has driven wages sharply higher. Today, mid to senior-level AI scientists earn total packages of $500,000–$2 million, up from $400,000–$900,000 in 2022. Senior software and system engineers without AI experience typically earn $180,000–$220,000. (2,6)

Meta pays AI engineers $186,000–$3.2 million, while OpenAI offers $212,000–$2.5 million. However, researchers and STEM professionals often prioritize the reputation of team leaders and the quality of work over the huge sums of cash being offered, according to engineering recruiters.

3. Europe’s engineering talent market is heating up

The sky-high price tag for talent is pushing some tech groups to tap into Europe’s talent pool.

“If you take one software engineer in the Bay Area right now, you can have three to four people of roughly the same level in Europe.”

-Thomas Wolf, co-founder and CSO at Hugging Face.

And, if you go more towards the east, you can hire even cheaper. There is still a large discrepancy in salaries in Europe. For instance, current data shows that skilled developers in Eastern Europe earn $30,000–$60,000 annually. (4)

Find out more about recruiting across regions on our Recruitment Process Outsourcing Poland and Recruitment Process Outsourcing Netherlands pages.

So, how to attract engineers when industry giants are offering sky-high salaries?

The answer is - mission.

As defense budgets swell across Europe, defense and security startups are attracting software and process engineers by emphasizing mission-driven work.

Jonas Andrulis, founder and CEO of German AI start-up Aleph Alpha, states that candidates are interested in research freedom, the ability to publish, and the societal impact of their work. (5)

Topics like sustainability, ethical alignment, and solving real-world problems also come up more often.”

4. Cybersecurity pressures are rising

There’s a growing trend of solo hackers and small teams. While big organized groups still operate, easier access to hacking tools, tutorials, and malware-as-a-service has lowered the barrier, fueling more individual cyberattacks.

With attacks increasing in frequency and sophistication, companies urgently need to put more emphasis on their cybersecurity recruitment, yet the skills required remain scarce.

5. Automation and AI reshape hiring strategies

Amazon is approaching a milestone where its warehouse robots will outnumber human workers. The lesson? Companies must devote more time to talent management and think strategically about how automation affects operations. Do they need more robotics engineers, and how to find them? Most importantly, they have to implement conclusions into their workforce planning and recruitment strategy.

Uncertainty clouds workforce planning

Should companies hire aggressively now or wait to see how AI adoption changes engineering staffing needs? How to find the best AI-skilled software engineers, and are they worth the investment?

The risk of misaligned hiring decisions is growing - employers can’t afford to waste time or budget on the wrong engineering recruitment strategies.

And that brings us to the heart of the matter:

How do you hire the right software, process, or mechanical engineers and create an environment where they can truly reach their full potential?

Let's find out:

Engineering Recruitment: Best Practices

With AI and cybersecurity talent in high demand, inflated resumes and vague claims often lead to mis-hires. Yet companies enabling internal mobility, like Morgan Stanley, which saved 280,000 hours by redeploying engineers, are cutting costs and boosting innovation. The following best practices will help you hire and retain engineers who deliver real value.

1. Skills-First Hiring

Skills-based hiring is important: Prioritize candidates with demonstrated skills adaptability, emphasizing potential rather than only traditional credentials. Clearly define the skill profiles you anticipate needing in the next five years, emphasizing AI, machine learning, and cybersecurity.

Note: Be careful when screening and contacting candidates, because…

“Most of the time it's not even something I'm qualified for.”

- Engineer on Reddit

2. Engineer Agility and Internal Mobility

Engineer agility and internal mobility can deliver extraordinary value. At Morgan Stanley, an internal engineering team developed a tool that automated the rewriting of legacy code (such as COBOL) into modern programming languages, saving the bank over 280,000 working hours in just one year. (3)

Trevor Brosnan, the person who led the team, stated, "In early 2024, I pulled some of our top distinguished engineers at the firm out of their line of business teams and into a new applied AI team, because my instincts told me that there was some great opportunity here."

It is clear that encouraging internal mobility and cross-functional training builds a versatile workforce and can dramatically reduce recruitment costs.

3. Structured Competency-Based Interviews

Create and perfect structured, competency-based interviews and candidate assessments that specifically evaluate skills alignment and adaptability. Develop scenario-based questions to assess problem-solving, technical flexibility, and AI literacy in the engineering sector.

“In the process of hiring AI engineers, it is fairly common to come across candidates who overstate their involvement in past projects. Resumes often mention leading model development or managing entire AI initiatives, but during the interview, the details can become vague.

Also, some candidates consider themselves AI experts simply because they have mastered one popular AI tool or platform. While that might be enough for narrow use cases, more demanding engineering jobs often require a broader understanding of different approaches.”

Irena Mehoj, Senior Sourcing Consultant at Serendi.

4. Smart Sourcing and Talent Attraction

Employ specialized candidate sourcing tactics, such as leveraging AI-driven screening tools, using industry-specific talent pools, and expanding geographical reach. Promote your organization’s unique value proposition clearly, including mission-driven work, technical challenges, and learning opportunities.

Most Common Mistakes in Engineering Recruitment

Vague roles, skipped internal moves, and salary-first pitches drain time and weaken teams. Read on to sidestep these costly missteps.

• Vague Job Descriptions

Poorly defined roles attract mismatched candidates and slow down hiring. Clearly articulate the skills and outcomes expected from new hires.

“I'll read an interesting email with an interesting job. I want to know about the company, how interesting the project is, what the mission is, and any other interesting details. I hate the "I have tons of jobs!" emails; it makes me think they are all junk if I don't see any details.”

-Engineer on Reddit.

• Neglecting Internal Mobility

Ignoring internal talent can cost valuable hours and lost potential innovation, as demonstrated by Morgan Stanley’s example.

• Competing Solely on Salary

Attempting to outbid large companies with financial incentives alone is rarely sustainable. Instead, you should highlight purpose-driven work, stability, career development, and quality of life.

“A path for professional growth and the opportunity to work on interesting things are important if I'm going to jump to a new company.”

- Engineer on Reddit.

Hiring Engineers: Candidate Red Flags

Hiring the wrong engineer can drain budgets and delay projects. Watch for red flags: exaggerated resumes, overconfidence, disrespect during interviews, and no interest in your company. Catching these early saves time and builds stronger teams.

One research paper (7) analyzed recruiters’ experiences and found widespread agreement on the most common red flags among engineering candidates:

Inflated Experiences and Skills: Candidates exaggerate their technical expertise, claiming knowledge they lack in practice.
Disrespect for the Hiring Process: Arrogance and disregard for interview stages or people involved signal potential cultural issues.
Lack of Knowledge or Interest in the Company: Candidates unprepared to discuss your organization often show low motivation.
Poor Communication Skills: Struggling to articulate thoughts clearly, beyond simply being introverted, can hinder collaboration.
Failure to Use Soft Skills: Weak interpersonal skills, especially during candidate interviews, raise concerns about teamwork potential.
Taking Undue Credit: Claiming team achievements as personal accomplishments indicates egocentrism.

If your perfect candidate ticks some of these boxes, maybe you should reconsider them.

Engineering Recruiters on Current Situation: What Experts Are Seeing

Serendi’s recruitment experts reveal today’s key hiring trends, from AI-polished interview answers to overstated skills, and how to adapt your approach to secure top engineering talent:

“Recently, I’ve noticed more candidates using AI tools during the interview process, especially for preparing answers or even drafting responses to pre-screening questions.

While it's understandable that candidates want to present themselves well, this trend also highlights the importance of asking deeper, more personalized questions and staying alert to overly polished or generic replies during the skills assessment.”

Katarina Todorovic, Senior Talent Acquisition Partner at Serendi.

“Candidates often dislike 'tech' questions from non-engineers, but our recruiters have 10+ years of recruitment experience in IT and engineering - and get direct feedback on performance. Our candidates achieve a 96% probation pass rate, 15% above average. An engineering recruiter may not code, but they know what makes a great software engineer.

So, recruiters should not try to act as experts but still show their industry expertise. In other words, ask thoughtfully to keep candidates open, not defensive.

Engineering candidates prefer permanent positions and remote work. Fixed-term roles and a lack of hybrid options are the top reasons candidates drop out.”

Milica Lapcevic, Talent Acquisition Partner at Serendi.

Wondering why candidates are turning down job offers?

Discover the key reasons behind rejected offers and how to prevent them: Why Job Candidates Are Saying No.

Engineering Recruitment: Case Studies

Engineering recruitment can be challenging, but it’s far from impossible. Here are real examples of doing it right - and boosting every key recruitment KPI along the way:

An IoT solutions company needed ultra-niche R&D talent across multiple EU locations, with only 30 to 40 suitable profiles globally.

They also required talent insights to support their global, talent-centric hiring strategy. Our dedicated team delivered targeted shortlists and deep market analysis, resulting in a 55% cost reduction and 40% shorter time-to-hire.

A data analytics group set out to build a skilled team from zero, without any existing talent acquisition processes.

Specialized roles in a small talent market posed a major challenge. Serendi stepped in with expert sourcing, cutting recruitment costs, achieving a 97% probation pass rate, and ensuring hires fit seamlessly with the company culture.

Key Takeaway: What Is the Best Way to Recruit Engineers?

We hope this article clears up your dilemmas and helps your HR department make smarter engineering hires. But we know many companies, especially those outside engineering or AI, lack the resources for an effective hiring process.

Even companies in these AI and IT niches have problems: hiring managers know what good talent looks like, but they’re often too busy with day-to-day responsibilities to focus on candidate sourcing or candidate screening.

That leaves occasional job postings on social media or engineering recruitment agencies as the most commonly used options. Yet attracting top talent requires a dedicated, strategic approach, which recruitment process outsourcing (RPO) provides.

Unlike a staffing agency focused on quick, one-off hires, Serendi’s embedded recruiters become part of your team, understand your culture, and find candidates who join, stay, and thrive. We provide global and local recruitment solutions across all industries.

Hiring across multiple industries? Explore our expert guides:

Cybersecurity Recruitment Made Easier: How RPO Closes the Talent Gap

Recruiting Tech Talent: 5 Talent Streams in Europe’s IT, and How to Leverage Them

Pharma Recruitment in Europe: Fast, Cost-Effective Strategies That Work

Hiring Paradox in Advanced Manufacturing - Why Generic Recruitment Strategies Fail

IT specialists recruitment: the definitive challenge

About the Author

Julia Koblischke is a Business Development Manager at Serendi.

She has over 8 years of cross-industry, international experience in talent acquisition and account management, advising our clients globally. Her passion lies in transparent communication, connecting people with the right opportunities, and helping companies achieve growth and success.

Expert Contributors:

Irena Mehoj, Senior Sourcing Consultant at Serendi.

Milica Lapcevic, Talent Acquisition Partner at Serendi.

Katarina Todorovic, Senior Talent Acquisition Partner at Serendi.

Sources: