The provision of high-quality customer service is central to our business success. We therefore devote considerable resources to attracting, developing, motivating and retaining talented people. We also invest in skills building and personal development. Motivated, happy staff mean satisfied customers.

At 31 December 2005, our total headcount was 7,845.

EDUCATION AND STAFF DEVELOPMENT
All staff are offered the opportunity to develop and expand their skills through online and classroom-based training at our training centre. We offer a wide array of courses, ranging from financial and product-based training through management and IT skills to language and professional development programmes.

Management Training Scheme
We are committed to developing high-calibre graduate trainees to become future business leaders at Hang Seng. Individuals employed under the scheme are given intensive training and exposure to many different business segments with a view to preparing them for future executive positions.

EMPLOYEE ENGAGEMENT AND COMMUNICATION
Our staff have a valuable role to play in Hang Seng's direction and policies, and we encourage open communication across levels. Senior management and staff engage in regular two-way information exchanges through a variety of methods, including 'InterChange Sessions', 'Chief Executive Mail Box', 'Meet-the-staff Scheme', 'Management Effectiveness Questionnaires' and 'Staff Hotline'.

Employees are also encouraged to suggest ideas as part of work improvement programmes, cross-team projects and suggestion schemes.

In September 2004, we conducted a bank-wide opinion survey to measure staff views on a number of topics. In response to the findings of this survey, around 40 focus groups at Bank and division levels were formed to provide input on four key issues of staff concern: workload; performance review; pay benefits and rewards; and engagement. Comments and suggestions raised by these groups were compiled and submitted to a Steering Committee chaired by the Deputy Chief Executive for consideration.

PAY AND COMPENSATION
Offering fair and competitive pay and benefits packages is part of our strategy for attracting and retaining talented employees. We have adopted a performance-based remuneration system in order to motivate staff across the board. We regularly review our staff's remuneration with reference to their performance and the market situation, and increase salary or other elements of compensation packages as appropriate. Outstanding staff will be further incentivised through the use of a variable pay scheme that is based on the business performance of the Bank.

HEALTH AND SAFETY
All our staff are entitled to enjoy a safe and healthy work environment. We have a number of ongoing programmes designed to eliminate, control or mitigate certain types of risk. We conduct regular training of internally appointed responsible persons such as fire marshals. We also ensure that staff have access to equipment designed to improve their occupational health. We have also taken steps to raise staff awareness by setting up an intranet page that provides relevant information on preventing infectious diseases, with advice on observing good personal hygiene and practising a healthy lifestyle.

The 2003 SARS outbreak taught businesses in Hong Kong an important lesson as regards preparation for facing a serious or widespread threat to health and safety. We have developed contingency plans to ensure the impact of any major health threat on our staff is minimised. We have also set up a staff webpage to provide the relevant information on preventing infectious diseases, such as observing good personal hygiene and practising healthy lifestyle, to strengthen our staff's awareness on such issues.

Our goal is an injury-free workplace. In the unfortunate event of any workplace accident, its causes will be identified and steps taken to prevent any recurrence.

EQUAL OPPORTUNITIES
We are committed to providing equal opportunities for all employees. Our employment practices and procedures do not discriminate on the grounds of sex, marital status, disability, pregnancy or family status.

All employees are briefed on our anti-discrimination and anti-harassment policies. Disciplinary actions may be lodged against any employee who engages in acts of harassment or discrimination.