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UK Employees Not Seeing Bright Bonus Prospects
Taleo Research Finds Businesses Lack Strategic Performance Alignment and Leave Employees in the Dark on Bonus CriteriaLondon – 14 December 2009 – Research released today by Taleo (NASDAQ: TLEO), the leading provider of on-demand talent management solutions, has found that, despite having weathered the worst of the recession, the majority of workers do not expect to receive a bonus this year.
In a survey of UK employees, entitled The Bonus Barometer, Taleo found that just 39% of respondents are expecting to receive an end-of-year bonus. Although this indicates that bonuses will be slightly more common than last year, when just 34% of respondents received a bonus of any kind, the research suggests that workers receiving a bonus this year will still be in the minority. Many organisations will therefore need to use other tools and benefits to make sure their staff remains engaged in the New Year.
The survey also found that most businesses do not align corporate success with individual success when reviewing rewards. Just 19% of respondents stated that their employer calculates bonuses using personal performance targets linked to business goals.
Instead, the majority of bonus calculations (51%) are based either on the general success of the business (21%) or on individual success (30%). Worse yet, one fifth of employees do not know how bonuses are calculated at their company.
“In order to ensure they are getting the best possible value out of their bonus and reward schemes, businesses need to clearly align corporate and individual targets,” Chris Phillips, vice president, international marketing at Taleo commented. “Goals alignment is a key part of any effective performance management strategy. Without it, businesses cannot be sure that an employee’s personal efforts will directly contribute to the company’s overall success.”
The Bonus Barometer also found the majority of employees are confident that their managers have good visibility of their performance and role. Ninety percent of respondents think that managers have a ‘reasonably clear and accurate’ or ‘very clear and accurate’ view of their performance and achievement, with 88% saying they have a good understanding of the performance their employer expects of them.
However, it is not clear that this positive perception matches reality, with just 38% of employees having access to tools that show how their role helps the business. This means that both staff and organisations have only limited visibility into how they are contributing to the overall business objectives.
Chris Phillips continued, “The Bonus Barometer shows that employees have confidence in the accuracy of their managers’ perceptions. However, in order for this perception to match reality, managers require access to accurate goal information. Establishing a clear relationship between personal and organisational goals creates an incentive for effective goal setting and strategic success. Companies that make this link are able to reward those employees that are directly contributing to the business’ bottom line and long-term success, leading to fairer and more cost-effective bonuses for employees.”
About the research
The Bonus Barometer surveyed 140 UK employees from a range of employment fields. The research was conducted in December 2009.
About Taleo
Taleo (NASDAQ: TLEO) is the leader in on demand unified talent management solutions that empower organizations of all sizes to better understand and engage their best talent for improved business performance. More than 4,200 organizations use Taleo for talent acquisition and performance management, including 46 of the Fortune 100 and over 3,500 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 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 Part II, Item 1A of Taleo’s Quarterly Report on Form 10-Q/A, as filed with the SEC on November 4, 2009, and in other reports filed by Taleo with the SEC.
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