Employees

Group employees and recruitment

The strong increase in average weighted number of employees, expressed as full time equivalent (FTE), reflects both the strong organic growth of the Group (new recruitment) and the acquisitions made within the past 12 months. On average over 2008 the Group's total FTE came to 6,910 people and headcount by the end of 2007 was approximately 8,000.

The Group estimates that around 90% of Group staff is on permanent contracts (contracts of undetermined length). In general the need for interim or fixed term contractors is limited by the high level of technical competence necessary in the analytical sector and our requirement to deliver a high quality of service.

The Group had no particular difficulties overall in recruiting staff in 2008, even though there are differences between individual sites and countries. However, the requirement for a high level of technical competence outlined above means that the recruitment process can take several months.

Remuneration, welfare taxes, sexual equality

Eurofins companies have a remuneration policy designed to encourage both the individual and collective performance. Remuneration is determined at each subsidiary’s level, allowing local management to set individual and collective rates. The Group also allows autonomous determination of the fixed and variable elements of employees’ remuneration. In general the variable element grows as the level of responsibility increases and represents up to 30% of fixed salary.

The Group encourages long term loyalty amongst employees and believes that it is a major contributor to its success. Therefore Eurofins has developed, since its listing in 1997, an employee stock option scheme that enables a large number of Eurofins’ staff to participate in its success. Further details on the option scheme are contained in the relevant section of this report. In addition, as part of the issuance process for the OBSAR instrument in 2006, the Group made sure that Eurofins managers were able to purchase the warrants attached to each bond, under the condition that they were not exercised for 7 years. Finally, when and where deemed appropriate employees are also encouraged in ordinary share purchases.

The Company believes that the good management of employees, in particular with regards to their competences and skill levels, has resulted in the enhancement of our operational and reporting processes. This requires high-quality recruitment and training as well as an attractive wage policy. On this basis our objective is equality of treatment between male and female employees in each subsidiary within the Group.

Working Hours

The weekly working hours for employees vary from country to country according to respective employment legislation. The average number of working hours is in the region of 35 to 40 hours per week for full time employees. There is a wider range of average working hours for part time employees, especially between different countries, but an indicative range would be approximately 15 to 30 hours a week.

As part of our analytical testing services it is sometimes necessary to work supplementary hours when a customer has requested a short turn around time and fast results. Normally this extra time will be repaid either by financial compensation or additional time off, depending on the policy of the laboratory in question.

Employee Culture

The Eurofins Group encourages and rewards collective performance because it considers its workforce as the single biggest contributor to its ambition to be the leading player in the bioanalytical market. The Company is enriched by the successful integration of so many different cultures (illustrated by three different nationalities on the Group Executive Committee alone).

In addition, there exist a number of collective agreements within subsidiaries and affiliates. Employee representation is usually through an employee council, elected personnel, works committees, trade unions or some such organisation specific to each country where the Group operates.

Training

Eurofins has developed a portfolio of over 25,000 different analytical tests, therefore offering an interesting and challenging environment for our scientists. Our training programmes are designed to allow laboratory personnel to keep up to date with the latest developments in testing and analysis.

The exchange and transfer of know-how is a value driver within the Eurofins Group allowing us not only to maintain the high standards of quality that we offer to our clients but also to develop each individual’s technical ability and proficiency. The internal communications tool, ComLIMS, was specifically developed in 2000, and is continually upgraded, in order to give access to and speed up the dissemination of scientific, technical and commercial information within the Group. This global strategy aims both at the continuing improvement of our managerial and operational competences and the optimisation of our organisational flexibility. This enables the Company to anticipate and adapt to an evolving market place. ComLIMS now has over 1300 trained users with regular access in the Group. Further to this, internal conferences for the Analytical Service Managers (ASM) enhance Group-wide appreciation of technical and industry-focused issues that help to build stronger customer relationships.

A number of our laboratories have agreements with universities and technical agencies to accommodate within their teams both scientists and technicians in the course of their qualifications, doctorates, post-doctorates etc. In this way Eurofins benefits from being able to use high quality personnel who have the potential to join the Company in the future and who often possess fresh ideas and insights. The secondees in turn are able to apply their theories in a practical environment with state-of-the-art facilities.

Disability Policy

The Group attaches a great deal of importance to ethical values and in particular to the policy of employing wherever possible a certain number of handicapped people. Group facilities are usually also enabled for disabled access.