Croda International plc is a global leader in speciality chemicals, sold to a wide range of markets - from personal care to health care; from crop care to coatings and polymers. In its annual report it describes its investment in employees:

Employees

1. Recruitment \(\&\) retention

Like all successful businesses, we recognise that our future depends on our ability to attract and retain individuals who are passionate about personal and business growth and want to make a significant contribution to the future of our business. Recruiting individuals that fit this description and the culture of the business is always hard, but within the chemical industry it is increasingly a problem with a high level of competition for a decreasing number of graduates. As our business is focused on innovation and growth in emerging markets and developing countries, this challenge increases further.

2. Compensation \& benefits

In a competitive recruitment marketplace we are conscious that we should not lose critical staff because of issues relating to pay or additional benefits. We realise that the remuneration package we offer plays a key part in attracting and retaining employees.

3. HR policies \& systems

Information and knowledge sharing are at the heart of making better business decisions. Streamlined systems and policies not only provide the data and trends on which to base decisions, but will in turn drive employee engagement. We believe that well defined policies and procedures allow our employees to operate without constant management intervention. It is this autonomy and freedom to act that has made our business what it is today.

4. Talent management and employee development

The key to the future success of any business lies in the skills and abilities of its workforce. It is only through the continual development of our workforce that we will be able to meet the future demands of our customers in relation to enhanced creativity, innovation and customer service. Being a business dependent upon a large number of specialists including engineers and scientists as well as finance, IT, HR, marketing, purchasing, sales, regulatory and legal professionals we have to place great focus on continuous development.

5. Performance management

A strong, efficient performance management culture is not only important to employees' professional development, but also to meet the Company's objectives and so ultimately contributing to its bottom line. In addition, a clear, robust process will lead to enhanced communications and an opportunity to address performance problems effectively, thus delivering improvements in employee morale.

Discussion points

1 The 'people' asset does not appear in the balance sheet of a company. What are the costs to the company of maintaining the 'people' asset?

2 What are the risks to a service business of strong reliance on a 'people' asset?