Second runner-up Toys 'R' Us employs happy frontline staff, who help to enliven the atmosphere and cheer up shoppers, thanks to its people management policies.

"Our human resources programme is designed to provide employees with the opportunities for personal growth and career development, and to cultivate mutual care and respect in the workplace. When they feel content with their careers, they will be genuinely happy and able to deliver the fun elements to customers," says Chris Wu, human resource director.

Starting from recruitment, the company seeks individuals who are cheerful, playful and embrace team spirit. "We want people who enjoy chatting with customers and playing with children," Wu adds.

Toys 'R' Us has practices aimed at making employees content at work. Employees are entitled to birthday leave and receive presents. Parents get two days of paid childcare leave annually and three days of paternity leave.

The corporate culture of Toys 'R' Us embraces open communication. "Because frontline employees know our customers the best, we put great emphasis on the maintenance of frequent communication with them. We conduct focus group discussions regularly to consult them on decisions that affect them," Wu says.

The effectiveness of the HR management system is reflected in its low turnover rate. "When we began to implement our main HR practices in 2004, our turnover rate was 30 per cent, but last year it dropped to 12.6 per cent, which is considered a healthy level," Wu says.