All businesses are seeking ways to capitalise on the growing potential offered by AI in one way or another. However, the pool of available candidates in this field is limited, largely because it is a relatively new market and employers are increasingly competing with each other to recruit the skills they need to thrive. In most instances, businesses wouldinstinctively think of luring top professionals with inflated salaries; yet, while fundamentally important, we have seen that pay alone isn’t the single most compelling factor in play for today’s workers.
Salaries have historically been the go-to benefit that employers have scaled up to attract candidates, especially in niche and emerging areas with significant skills gaps, such as artificial intelligence, where paying premium rates for talent is even more prevalent.
This concept was reinforced by our recent Salary Guide data, which found that 67% of employers would increase salaries for candidates with specialised skills such as AI proficiency. This is particularly widespread in technology and IT, where 70% of business leaders said they would increase pay to secure such skills.
The willingness to pay more for AI skills is understandable; these are niche, technical and complex competencies that cross disciplines and evolve quickly, and for most organisations, the shortage is acute. But, as many employers are finding, salary inflation has its limits and only leads to rising operational costs at a time when budgets are already stretched. It also isn’t conducive to building a culture that is underpinned by loyalty and longer-term collaboration.
Demand for perks and benefits
While it is crucial that businesses don’t fall into the proverbial premium salary rabbit hole, what is perhaps more important is to delve into what it is that today’s professionals really want. In fact, readers may be surprised to note that – from a candidate perspective – our research showed money may no longer be the decisive motivator. In fact, in many instances professionals are placing heightened importance on the non-monetary elements that surround their role.
Our research reveals a clear trend: workers across the UK are increasingly willing to trade salary increases for meaningful perks and benefits. When asked what additional offerings would most influence their decision to accept a role, 80% of all respondents said they would accept additional paid time off in place of a pay rise, highlighting a growing preference for flexibility and work-life balance over purely financial incentives.
Other highly valued perks for UK workers include flexible work arrangements (78%), professional development opportunities (69%), one-time signing bonuses (65%) and stock options (60%). For employers navigating financial constraints, these findings offer a strategic advantage. By understanding which benefits resonate most, businesses can design competitive packages that attract and retain top talent without relying solely on salary increases.
A new model for securing AI skills
For employers, this data will be surprising, but also positive. Few firms are in a position to drive their fixed costs even higher, which only triggers ripple effects across other functions and, indeed, the entire business. Development programmes, for example, represent an investment, more than a cost, and the simple economics of these changing preferences only benefits companies. They gain from their employees possessing wider skill sets, while the costs of funding more paid time off or flexible working opportunities are minimal compared to potential salary increases.
This means that the approach of continually escalating pay begins to look short-sighted, asthe methods of securing AI skills most effectively are clearly those that feed curiosity and capability. Financial reward matters, of course, after all, everyone should get paid fairly. However, remuneration functions best as part of a broader ecosystem of rewards, meaning that employers that exclusively offer higher salaries can risk missing out on key skills longer-term.
The competition for AI expertise will not abate, quite the opposite. The ongoing competition for talent will only increase as more businesses seek these experts to support automation and, as we are already seeing, demand will only continue to exceed supply. However, employershave more levers and options at their disposal than they often assume, and by shifting their focus from salary escalation alone and more towards broader capability investment, they will be better equipped to recruit the people they desperately need, far more effectively.
