UNIVERSITY graduates are being tempted with "golden hellos" of £3,000 by engineering firms suffering from a shortage of skilled staff, a new report revealed today.

Companies are also offering to help with accommodation costs as well as giving interest-free loans and private health insurance to try to recruit talented youngsters.

Research by the Engineering Employers' Federation found that some graduates were also being offered up to £5,000 in relocation costs.

The average starting salary for graduates in engineering, general management and finance is around £17,000.

EEF director general Martin Temple said: "These figures contradict the widely held belief that engineering is unrewarding, both financially and in terms of career development.

"Companies depend on their technical excellence and our survey shows they now offer outstanding career opportunities to our best graduates."

The survey of 100 engineering firms covering 1,200 graduates found that the best pay was offered in aerospace, telecommunications and electronics.