The 2026 Engineering Talent Outlook: Insights from Negin Naraghi
Negin Naraghi — Senior Vice President, Staffing & Workforce Augmentation
As companies tackle large capital projects across utilities, energy, renewables, construction, and data centers, the engineering talent market is buzzing with opportunity. Skilled professionals are in high demand, and forward-thinking organizations are finding creative ways to build the teams that will power tomorrow’s infrastructure.
Ahead of the release of ARG’s 2026 Engineering Salary Guide, we spoke with Negin Naraghi to share an early look at the forces shaping the engineering talent market.
This Q&A has been edited for clarity and flow while preserving Negin’s direct insights.
Q: The engineering talent market is heating up for 2026. What are you seeing across your client base right now?
Negin:
What we are seeing is a very real engineering talent shortage, especially in roles tied to data center development and the infrastructure that supports it. Electrical, power, controls, commissioning, and field engineering talent are all in high demand. Many clients are ramping up large capital projects at the same time, and the competition for experienced engineers is intense.
What is encouraging is how that pressure is driving more thoughtful and strategic approaches. Companies are investing in training and development, expanding how and where they recruit, and putting greater emphasis on employee experience and retention.
While some projects are slowed by workforce constraints, organizations that view this moment as an opportunity to build stronger and more resilient talent pipelines will be better positioned for the long term.
Q: The Salary Guide mentions a ‘candidate-driven market.’ What does that mean in practice?
Negin:
In a candidate-driven market, skilled engineers hold the leverage. When demand outpaces supply, particularly in specialized areas like power, data centers, and critical infrastructure, candidates help set the market. Compensation increases quickly, and companies often need to stretch to secure the right expertise.
We see this most clearly in niche engineering roles where experience is limited, and project timelines are aggressive. Organizations are willing to pay a premium to keep projects moving. The key is balancing competitiveness with sustainability, so compensation structures continue to make sense over time.
While flexibility and work life balance matter more today than they did in the past, compensation remains the primary driver in most engineering decisions. Engineers want meaningful work and respect for their expertise but pay is still the foundation.
Q: How are companies adjusting their hiring and retention strategies to stay competitive?
Negin:
The companies seeing the strongest retention are those investing in clear career paths, upskilling, and long term development rather than focusing only on immediate project needs. Engineers want to understand how their skills will grow and how they can progress alongside the organization.
We are also seeing companies broaden their talent pools by being more open to adjacent skill sets and nontraditional backgrounds, while building internal development programs to close gaps. In this environment, nimbleness matters. The workforce is evolving, and successful companies are adapting by offering growth, flexibility, and a stronger voice in the work they are doing.
In a market this tight, retaining talent is just as important as hiring it.
Q: How is the boom of data centers affecting the market?
Negin:
Data centers have become foundational to how we live and work today, and that reality is reshaping engineering demand in a lasting way. This is not a short term surge. It represents a structural shift.
As investment continues to flow into AI, cloud computing, and digital infrastructure, demand is increasing for engineers who understand power, reliability, redundancy, and scale. Data center development is pulling talent not only into technology focused roles, but also into utilities, construction, transmission, and energy.
From my perspective, this demand is not slowing down anytime soon. It is redefining which engineering skills are considered critical.
Q: What’s your outlook for the next 12–18 months? Any advice for companies looking to hire engineers?
Negin:
Companies should start by taking a close look at the talent they already have. Upskilling and reskilling are no longer optional. They are essential. With the right training and mentorship, engineers can grow into new responsibilities as project evolves.
For engineers, the advice is to keep learning. The most in demand roles are tied to today’s technologies and infrastructure challenges, not yesterday’s. Those who continue to adapt through certifications, hands on experience, and exposure to complex projects will remain highly competitive.
The engineering labor market remains strong, particularly in data center driven infrastructure. The organizations and individuals who invest in growth will be the ones who stay ahead.
Get Early Access to the 2026 Engineering Salary Guide
Interested in a deeper look at compensation trends shaping the engineering workforce? Email Negin Naraghi at nnaraghi@argroupllc.com to reserve your copy today.