Organizations Lack Consistent, Objective Tools and Processes to Optimize their Workforce, According to New Research

SuccessFactors Survey Highlights Key Internal Workforce Challenges for Business Wanting to Be Agile within the Current Economic Downturn

LONDON--(BUSINESS WIRE)--Jan. 15, 2009--In response to the weakening global economy, organizations know that they must optimize their workforce, but lack the consistent, objective tools and processes necessary to succeed, according to a major new study by SuccessFactors, Inc. (NASDAQ:SFSF), the global leader in on-demand performance and talent management solutions. Seventy six per cent of companies are not ready to deal with major changes in their workforce, such as staff reductions, realignment of resources and optimization of employees - the very kind of changes that companies often need to make within an uncertain economic time or downturn.

The SuccessFactors study, entitled 'Workforce Optimization', which surveyed 277 business in the UK and Ireland, gauged how, if at all, organizations are ready and able to optimize their workforce when faced with issues such as declining revenues, and how to ensure their workforce is contributing to the bottom line by identifying its top performers and cultivating that talent to help develop the right competencies to achieve strategic organizational goals.

SuccessFactors also asked respondents how the weakening economy has affected their business. The answer revealed that companies are scrambling to keep morale and employee performance up. Sixty per cent listed staff morale as the top area of performance affected by the downturn and furthermore, over a third said that the performance of individual employees has been affected.

"Clearly organizations are feeling the effects of the downturn and should be thinking about optimizing their workforce," said Andy Leaver, Vice President of EMEA Sales for SuccessFactors. "Now more than ever companies need a consistent way to look across their organization and make the tough calls that will allow them to compete and exploit any opportunities that become available."

"The real power of a talent and performance management system lies within the richness of its data, which enables businesses to look at people-related data across an entire company," said Erik Berggren, Senior Director of Global Research at SuccessFactors. "When the dust settles and the economy begins to flourish again, companies with the right resources and processes in place will be poised to succeed. Workforce optimization is critical to emerging from the economic environment in a position of strength."

A more detailed overview of the research findings is available at: http://www.successfactors.co.uk/download/getresource/?doc=/docs/sf_research_databrief_workforce_optimisation_UK.pdf

SuccessFactors performance and talent management software includes recruiting management, goal management, succession management, 360-degree review, compensation planning, learning and development, and analytics and reporting applications. The solution creates a company-wide network of information related to employee performance, including skill-sets, interests, career aspirations, ability to relocate, experience, languages spoken and more. By providing deep, real-time, company-wide visibility into such critical performance data, companies are able to make better, more informed decisions about how to promote, recruit, compensate, reward and manage their entire employee base.

About SuccessFactors, Inc.

SuccessFactors is one of the fastest growing public software companies and the leading provider of on-demand employee performance and talent management solutions. The company enables organizations of every size, and across every industry and geography, to achieve high-performing workforces through goal alignment and execution, talent development and planning, and pay-for-performance initiatives. From 92 customers and approximately 282,000 end users in 2003 to more than 2,360 customers and 4 million end users today, SuccessFactors' solutions are widely deployed across 60 industries in over 185 countries in 31 languages. Founded in 2001 with offices around the world, the company employs passionate people focused on revolutionizing the future of work. For more information, visit: http://www.successfactors.com.

CONTACT: SuccessFactors, Inc.
Dominic Paschel, 650-645-4474
(Public & Investor Relations)
dpaschel@successfactors.com
Vanessa Land, +44 (0) 870 242 7469
(U.K. Public Relations Agency for SuccessFactors)
vanessa@devonshiremarketing.com

Source: SuccessFactors, Inc.