SOURCE: Taleo

September 10, 2007 08:00 ET

Taleo-Sponsored Study Reveals Disconnect Between Employee Motivators and Company Performance Management Strategies

#1 Reason Extremely/Very Motivated Employees Voluntarily Leave Their Jobs Is Lack of Growth Opportunities; 57% of Full and Part-Time Employees Have Either Never Had a Performance Review or Said It Was Neutral to Not Useful

SAN FRANCISCO, CA--(Marketwire - September 10, 2007) - Taleo WORLD -- Taleo Corporation (NASDAQ: TLEO), the leading provider of on demand talent management solutions, today announced the results of the Taleo Research Performance Management Survey, a study sponsored by Taleo and conducted by Harris Interactive, that examines the factors impacting employee motivation and satisfaction. According to the survey, respondents indicated that growth opportunities are a very high priority, yet the current performance review process is outdated and unproductive.

The survey shows that extremely/very motivated respondents who have voluntarily left a job cited a lack of growth potential as the most important factor in their decision to leave, while only 12% of full and part-time workers feel their employer offers them a career path plan. The study also shows that extremely/very motivated respondents are more likely to want to be challenged and receive more professional development (training, internal mobility, mentoring, career planning, and/or performance reviews) from their employer, than unmotivated respondents. Other key findings include:

--  41% of motivated respondents who have voluntarily left a job cited
    lack of growth potential as a deciding factor
--  43% of full and part-time employees said opportunities for advancement
    are a key motivator
--  Only 12% of full and part-time workers say that their employers give
    them a career path plan
--  57% of full and part-time employees have either never had a
    performance review or said it was neutral to not useful
--  79% of employees don't currently receive career mentoring from their
    employer
--  84% of motivated respondents receive professional development
    (training, internal mobility, mentoring, career planning, and/or
    performance reviews) from their employer, compared to only 65% of
    unmotivated people. (full and part-time employees)
    

"A company's most valuable asset is its employees. If you want to attract and retain motivated people, you need to align your performance management strategy with the demands of this talent pool," said Alice Snell, vice president of Taleo Research. "Taleo is reinventing performance management to arm company managers and employees with the tools they need to provide next generation performance reviews, career and succession plans, align goals, and identify mentors through a unified, user-friendly solution."

For more information about Taleo Performance, click here.

About Taleo

Taleo (NASDAQ: TLEO) is the leader in on demand, web-based 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 1,200 organizations use Taleo, including 33 of the Fortune 100, for talent acquisition and performance management, with over 1,080,000 users processing 66 million candidates from over 100 countries. Requiring no capital investment, Taleo's software as a service and on demand delivery offers 99.9% availability.

Forward-looking Statements

This release contains forward-looking statements, including statements regarding the demand for Taleo's solutions, 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 Item 1A of Taleo's Annual Report on Form 10-K, as filed with the SEC on March 16, 2007, in Item 1A of Taleo's Quarterly Report on Form 10-Q, as filed with the SEC on August 9, 2007, and in other reports filed by Taleo with the SEC.

Survey Methodology

This job performance management survey was conducted online within the United States by Harris Interactive on behalf of Taleo between August 28-30, 2007 among 2,416 adults aged 18 and older, of which 1,305 were employed full/part time. Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents' propensity to be online.

All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with non-response, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.

Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the U.S. adult population. Because the sample is based on those who agreed to be invited to participate in the Harris Interactive online research panel, no estimates of theoretical sampling error can be calculated.

About Harris Interactive

Harris Interactive is the 13th largest and one of the fastest-growing market research firms in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world's largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its North American, European and Asian offices, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

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