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The top financial incentives offered to UK graduates in 2022

           

As entry-level salaries rise fastest in 20 years, survey reveals job perks offered by companies

A survey has revealed the most common financial incentives being offered to UK graduates as employers fight to stay competitive amid a shortage of job applicants.

A survey of 104 firms from the Institute of Student Employers found that sign-on bonuses were the most offered financial perk in 2022, a year where graduate salaries have risen at their fastest level for 20 years

Some employers are increasing salaries by 20 per cent, according to the report, and the median starting salary for graduates was £30,500 in 2021.

The five most common financial incentives offered to graduates are:

  1. Sign-on bonuses, with 34 per cent of firms offering this.
  2. Interest-free or low-interest loans (24 per cent).
  3. Transportation allowance (20 per cent).
  4. Relocation bonus (17 per cent).
  5. Salary advance schemes (15 per cent).

Other financial incentives for graduates include discounts on own-brand products, healthcare, maintenance grants, financial wellbeing advice, money for homeworking, and hardship funds for those from lower socio-economic backgrounds, or those with additional financial needs.

School and college leavers

The survey also looked at financial incentives in jobs for school and college leavers, where salaries are increasing at an even faster rate than those for graduates. Pay growth for apprentices is 11 per cent this year, compared with 7 per cent for graduates.

Some employers are increasing salaries for apprenticeships by as much as 50 per cent, the report said, and the median starting salary for school and college leavers was £19,489 in 2021.

The most common financial incentives offered to school and college leavers in 2022 are:

  1. Transportation allowance, with 17 per cent of firms offering this.
  2. Interest-free or low-interest loans (16 per cent).
  3. Relocation bonus (12 per cent).
  4. Sign-on bonus (11 per cent).
  5. Accommodation allowance (11 per cent).

For school and college leavers, other perks included one-off cost of living payments, money for working from home, and clothing allowances.