High-tech talent is so scarce these days that Canada's Nortel Networks is offering $1 million (€1.05 million) in cash and prizes to its employees for enticing skilled friends to join the company.

And the world's second-largest maker of network equipment said it was prepared to up the ante if it had to beat the competition in its attempts to fill 5,300 optical Internet positions.

Employees are being asked to submit applications from family and friends. For every new recruit the employee gets $2,000 and the chance to enter five draws of $100,000 each.