Not many firms encourage staff to play computer games at work, but Microsoft is an exception. It decked out an area in its Reading offices with Xbox game pods, Halo 2 banners and a life-size version of the game’s hero, Master Chief, to celebrate the launch of the latest Xbox title, Halo 2.

As befits a former No 1 in this list, staff appear to have it all — positively awash with benefits, incentives, rewards and awards in a culture which values talent and achievement. People know what the company is about: 86% say they understand its values, and the same number believe in them.

At the cutting edge of the software industry, 79% say work is stimulating and it is an important part of their life for 80%, the sixth- and seventh-best scores respectively among our 100 best companies.

Despite the fact that 1,114 staff out of 1,754 earn more than £45,000 and pay is performance-linked, about half of staff think work interferes with their responsibilities at home and do not think they are sufficiently well paid to compensate, the second- and seventh-worst scores respectively.

Staff have a performance-linked stock award programme, generous holidays, 26 weeks’ full pay for maternity, flexible working, private healthcare, an on-site childcare centre, dental insurance, gym membership and a concierge service. And sales, services and marketing staff get a week-long induction in America, where they meet Microsoft founder Bill Gates.

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