Spectris' employees are key to the success of the company. We employ around 6,000 people in 160 offices throughout the world, with a high proportion of employees qualified at, or above, degree level. We are committed to providing our people with a creative working environment with plenty of scope for individual responsibility and achievement. In 2008, on average, 3,000 employees were employed in production and engineering, with 2,220 in sales and marketing and 500 in administrative functions. Compensation and benefits, which are in line with other leading companies in the sector, are designed to reward the achievement of objectives. Annual reviews provide feedback on employees' performance, set objectives and identify training and development opportunities to enable them to meet their full potential.

Policy
Spectris operates mainly in Europe and the US, but with a growing presence in Asia. Although different social and employment conditions exist in different locations, Spectris places high priority on compliance with the legislative and ethical requirements of the countries in which we operate, particularly with respect to employment practices, labour rights and equal opportunities. The Company Secretary has overall responsibility for employment policies, but responsibility for implementation is delegated to individual business units, with operational policies and procedures tailored to suit local needs. The company's employment policy is available at www.spectris.com.

Overall HR policies are set at the centre and implemented by each operating business, taking account of local conditions. Spectris retains a diverse workforce, valuing the different perspectives of its employees, and the company is committed to equal opportunities for all employees in terms of recruitment and employment, training and development, and promotion. We strive to create a culture of honesty, respect and professional excellence whilst maintaining a healthy balance between working and personal lives, with initiatives such as part-time and job share opportunities providing family-friendly working conditions. Employee surveys are carried out in a number of companies to measure the views of employees on company issues and action plans agreed to address the issues raised.

Staff turnover is dependent to a large extent upon local market conditions, but is generally low, particularly at senior management level and amongst technical/R&D staff, where in-depth technical knowledge brings loyalty and commitment to the company. Whilst data on employee turnover is not collated centrally, it is monitored by individual businesses.

Graduate recruitment programmes and student work placements exist in several companies, providing opportunities for young people, particularly scientists, to be introduced to the business environment.

Reporting
It is the responsibility of the managing directors in each operating company to ensure that all employees are fully aware of Spectris' HR policies. The group monitors compliance through various processes, including confirmation in writing by each business unit annually, and consolidated Equal Employment Opportunities Commission returns which are produced in the US.

Spectris' commitment to training and personal development emphasises the importance of retaining staff throughout the group and ensuring that all employees are encouraged to realise their full potential. Annual appraisals and performance reviews are carried out to determine training and development needs for individual employees. Malvern and Servomex, our two principal UK businesses, have received the Investors in People award for their programmes of training, appraisal, employee development and skills recognition.

Financial participation in the group is encouraged through the Savings Related Share Option Scheme, available to all UK employees, and through grants under the group's Performance Share Plan made to senior management across the group.

The company has a policy of encouraging its operating companies to provide information to their employees on a regular basis. This information includes matters relating to their company's performance, its prospects in the markets it serves and the future outlook for its business. In addition to regular staff briefings, most companies have intranets where news bulletins are posted.