Taleo Highlights Five Steps for Building a Performance-Driven Compensation Program

DUBLIN, CA -- (Marketwire) -- 06/15/10 -- Taleo Corporation (NASDAQ: TLEO), the leading provider of on-demand talent management solutions, today announced the availability of global pay-for-performance research and a new Taleo Research153; whitepaper, Performance-Driven Compensation: The Corporate Talent Insurance Policy. This paper outlines the impacts of creating performance-driven compensation programs that align employee compensation to actual impact on the companys key business goals.

Businesses are looking to manage the flight risk of their star performers through "talent insurance policies" that more accurately find and incent the best performers with differentiated compensation.

More than 80 percent of companies around the world are offering incentive programs that include bonuses, stock options or grants and educational scholarships. The biggest challenge is how to distribute and differentiate the incentive compensation between performers who range from being high performers to average or low performers.

"The peanut butter approach to compensation -- spreading merit and bonus incentives fairly evenly across the team -- not only dilutes the impact of the bonus pool, it hinders the key players in the business," said Alice Snell, Vice President of Taleo Research. "Having a differentiated compensation program that is tightly linked to performance management metrics, can make the difference between an organization keeping its star players and driving powerful company performance or de-motivating its talent pool and ultimately, its impact on the market."

Technology is enabling organizations to link performance information with compensation data and ensure the right people are aligned with the right compensation and incentive options.

To help address the various intricacies of performance-driven compensation, Taleo Research compiled 5 steps for creating and managing a differentiated compensation program:

• Strategy - map the desired company results with the necessary behaviors needed from employees across the company.
• Technology Support - the entire performance and compensation process should have a strong technology underpinning.
• Tactics and Programs - make decisions about what tactics and programs will be essential to successfully executing the program.
• Measurement - measure progress through consistent and frequent discussions between manager and employee about employee performance.
• Communication - communicate the results of the years progress against individual and business goals via total reward statements or other tools.

For a complete copy of the whitepaper, http://new.taleo.com/resources/white-papers-downloadnid=1195. Taleo also has a short two minute version as well http://new.taleo.com/solutions/taleo-enterprise-compensation.

About Taleo
Taleos (NASDAQ: TLEO) cloud-based talent management platform unites products, people and perspective for better business performance through better talent intelligence. More than 4,500 customers use Taleo for talent acquisition, performance and compensation management, including 49 of the Fortune 100. Further, Taleos Talent Grid cloud community harnesses the expertise of Taleo customers and more than 200 million candidates, 100 partners and industry experts. www.taleo.com

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Forward-looking Statements
This release contains forward-looking statements, including statements regarding the demand for Taleos solutions, results from use of Taleos solutions and general business conditions. Any forward-looking statements contained in this press release are based upon Taleos 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 Taleos 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 II, Item 1A of Taleos Quarterly Report on Form 10-Q, as filed with the SEC on May 7, 2010, and in other reports filed by Taleo with the SEC.