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Engineering companies trying to attract talented young people and counter the effects of skills shortages are offering significant benefits including "golden hellos", according to a survey by the Engineering Employers' Federation.

It found that one-off payments of up to Pounds 3,000 and other benefits including accommodation assistance, interest-free loans, performance-related pay and subsidised gyms are being offered.

The average starting salary in 1999 was Pounds 17,000 for IT, management, engineering and human resources graduates, but after a year, the IT graduates were able to command the highest pay. Starting salaries are expected to rise by 5.3 per cent this year.