Workforce Management Survey Results: DOs and DON'Ts in a Down Economy

Taleo and Human Capital Institute Publish Best Global Insights from Leading Companies and Management Experts

DUBLIN, Calif.--(BUSINESS WIRE)--Feb. 17, 2009-- Taleo Corporation (Nasdaq: TLEO), the leading provider of on-demand talent management solutions, today announced findings from a global survey of 345 corporate executives and respected talent management leaders: “Recessionary Management: The Top DOs and DON'Ts for Managing Talent in the Current Downturn.” The survey was conducted in December by Taleo Research and the Human Capital Institute.

The research was based on the premise that this recession is different than any experienced by those in today’s leadership and HR management positions. Therefore, recognizing that workforce expenses usually account for as much as 70% of a business’s overall cost, the research sought to distill the best – and worst – practices in staffing management for making better cost-cutting and productivity-impacting decisions, regardless of geography.

Following is a synopsis of "DOs" and "DON’Ts" from business leaders around the globe that can also be accessed in more detail via an accompanying white paper (http://www.taleo.com/research/research.php) or replay of webcast: mms://a1473.v16732f.c16732.g.vm.akamaistream.net/7/1473/16732/0/sas-qp.onstreammedia.com/origin/humancapital/WEBCASTS/DEC 2008/12.12.08 Taleo Masters.wmv

Best Practices in Downsizing:

1. Identify the work that is core to retaining business (not just the work that is being done well). 56% of companies look at core and critical positions first to prioritize where headcount can be cut, if necessary.
2. Identify competencies needed to meet business goals. Use scenario-based workforce planning and performance management to make better decisions.
3. Protect your bottom line and your brand. When making downsizing decisions, consider that poor execution and planning has long-term brand effects and instant Internet scrutiny.
4. Communicate constantly. Let staff know what you know, when you know it and provide them the dignity they deserve.
5. Pay attention to survivors. Let them know why they were kept, or bear the consequences ranging from low engagement and productivity to leaving of their own volition. Voluntary turnover of key performers has gone from 10% to 25% in the past 12 months, according to Herman Trends.

Worst Practices in Downsizing:

1. Don’t cut with a hatchet, use a scalpel. Or, you may be understaffed for the recovery.
2. Don’t commit “death by a thousand cuts.” Plan for it well and do it all at once.
3. Don’t plan a layoff on a Friday or right before a holiday. Primarily for the survivors: they need reaffirmation and connection.
4. Don’t shoot from the hip. Have solid justifications, and consider legal ramifications in your plans.
5. Don’t keep employees guessing. Be forthright, honest and as detailed as possible.

Today’s talent management technology provides the tools and the platforms for HR and management to make the right decisions about their workforce. Utilizing the best information about corporate goals and individual performance enables organizations to optimize the engagement and productivity of their employees while protecting the corporate brand — even in the face of layoffs.

About The Human Capital Institute

The Human Capital Institute (HCI) is a catalyst for innovative new thinking in talent acquisition, development, deployment and new economy leadership. Through research and collaboration, our global network of more than 140,000 members develops and promotes creativity, best and next practices, and actionable solutions in strategic talent management. Executives, practitioners, and thought leaders representing organizations of all sizes, across public, charitable and government sectors, utilize HCI communities, education, events and research to foster talent advantages to ensure organizational change for competitive results. www.hci.org

About Taleo

Taleo (NASDAQ: TLEO) is the leader in on-demand unified talent management solutions that empower organizations of all sizes to assess, acquire, develop and align their workforces for improved business performance. More than 3,800 organizations use Taleo for talent acquisition and performance management, including 47 of the Fortune 100 and over 3,000 small and medium sized businesses across 200 countries and territories. Known for its strong configurability and usability, Taleo runs on a world-class infrastructure and offers 99.9% availability. Taleo's Talent Grid harnesses the resources of the Taleo community of customers, candidates, and partners to power the talent needs of companies around the world.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding the demand for and results from use of Taleo’s solutions and general business conditions. Any forward-looking statements contained in this press release are based upon Taleo's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Taleo's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Taleo disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Further information on potential factors that could affect actual results is included in Part I, Item 1A of Taleo’s Annual Report on Form 10-K, as filed with the SEC

on March 14, 2008, in Part II, Item 1A of Taleo’s Quarterly Report on Form 10-Q, as filed with the SEC on August 11, 2008, and in other reports filed by Taleo with the SEC.

Source: Human Capital Institute (HCI) and Taleo Corporation

Human Capital Institute (HCI)
Laura Polas, 866-538-1909 ext. 2283
or
Taleo Corporation
Jaime Spuhler, 904-493-8851
E-mail: jspuhler@taleo.com

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