SOURCE: Taleo

March 17, 2008 08:30 ET

Talent Management Essential for Companies to Withstand an Unpredictable Economy

Taleo Research Analysis Finds Continuous Talent Management Is a Critical Business Function for Companies in Any Economic Climate

DUBLIN, CA--(Marketwire - March 17, 2008) - Taleo Corporation (NASDAQ: TLEO), the leading provider of on demand talent management solutions, today announced the availability of a Taleo Research whitepaper titled "Talent Management in a Down Economy." In the study, Taleo Research analyzes historical and current data to determine the impact of economic downturns on hiring and how the efficient acquisition and retention of top talent helps businesses thrive in slow economies.

Job creation continues even during challenging economic climates, according to Taleo Research analysis of hiring trends during the last economic slowdown. According to Bureau of Labor statistics, in Q1 2000, during the hiring peak of the last expansion, 8.8 million new jobs (or gross jobs) were created. In Q2 2001, as the dotcom bubble burst, 7.6 million new jobs were still created. Analysis shows that while net job creation can go to zero or negative in a down economy, the total of gross jobs created is still significant as the workforce shifts from sectors that are being hardest hit to areas that continue to show growth. This fuels the need for companies to utilize efficient talent management solutions and practices regardless of economic conditions.

In addition, analysis shows that voluntary turnover is not significantly lower during a recession. In 2007, voluntary turnover across all businesses in North America was reported at 23 percent. In 2001 and 2002 (during the last recession) it was at 22 percent. Regardless of the economic climate, more than one fifth of a company's workforce may still be leaving of their own volition. In order to mitigate financial drain from open positions or poor workforce productivity, companies need a strategic hiring process that captures the best talent quickly.

"Given our analysis that significant hiring still occurs even during the most challenging of times, running a business without a talent management system is an expensive and inefficient proposition no matter the economy," said Alice Snell, vice president of Taleo Research.

To view the complete white paper, "Talent Management in a Down Economy," visit the Taleo Website at: https://www.taleo.com/research/whitepapers/talent-management-down-economy-59.html.

About Taleo

Taleo (NASDAQ: TLEO) is the leader in on demand unified talent management solutions that empower organizations of all sizes, around the world to assess, acquire, develop and align their workforce for improved business performance. More than 1,500 organizations use Taleo, including 37 of the Fortune 100, for talent acquisition and performance management, with over 1 million users hiring 3.2 million employees from 78 million candidates in more than 190 countries and territories. Known for its strong configurability and usability, Taleo's talent management platform runs on a world-class infrastructure and offers 99.9% availability.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding demand for and results from use of Taleo's solutions. 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.

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