A RED GATE core principle is that “motivation isn't about carrots and sticks”. Constant supervision and criticism are incompatible with great work, say bosses at the Cambridge-based software development firm. When it comes to flexible working, the company trusts people to put in the hours; staff don't need to justify coming in at 11am one morning if they fancy a lie-in and, as a result, they do not feel under too much pressure at work to perform well (a 75% positive score) and are happy about the balance between their work and home lives (72%). Work deadlines are realistic (75%). More than 20% of the 259-strong workforce at Red Gate Software — previously a regular in the Best Small Company list — have been there for at least five years, the amount of service needed to earn a six-week paid sabbatical. Last year, the firm cut the hours of employee Sarah Grady, a Paralympian who plays in the Team GB wheelchair basketball team, and gave her a three-month career break. When women have a baby they receive a bunch of flowers and their baby is automatically enrolled in the company's private healthcare scheme. The mothers are also offered a maternity buddy to help them return to work. Managers do not take advantage of staff (84%, the top score) and ensure people have the resources they need to do their job (83%). Bosses get budgets to organise events and last year one team went to an indoor skydiving centre, while another had a more sedate trip to one of Cambridge University's colleges, where they enjoyed a champagne reception, three-course meal and murder mystery night. There is also a company day out every year, and last summer the firm organised its own Redstock festival, with activities including rock climbing, drumming lessons and plate spinning. When it comes to good causes, sleeping with your colleagues for charity has got to be pretty high up the list of innovative ways to do one's bit. On a particularly wet October night, Red Gaters attempted to doze off while huddled together in an office car park. This was Byte Night: Cambridge technology companies coming together to sleep rough to raise money for Action for Children. The firm wins our special award this year for Giving Something Back. Simon Galbraith, Red Gate's co-founder and joint chief executive, took an similarly offbeat approach when he wanted to address the firm's future. Dressed as a wizard and carrying a sword, he spoke while standing on a rock, accompanied by a smoke machine. He is regarded as running Red Gate on sound moral principles (81%).

