CEO Breakfast Series Debbie Mc Grath CEO HR

CEO Breakfast Series • Debbie Mc. Grath, CEO HR. com • F. Leigh Branham – AMA Retaining Your Key Talent CEO Breakfast Series HR. com

Some trends we are seeing • Too Much Money • Confused buyer / messaging • Metrics become a reality • Labor Trends are hot hot • Defining the Holistic HR Strategy CEO Breakfast Series. 2

VC’s/ Mergers and Acquisitions • Too much money on the sidelines • VC’s have short term memory • Good Deals are hard to come by • • CEO Breakfast Series. The Mullarkey Factor Funding • Jobster 26 M + , Indeed 18 M, The Ladders, Mkt 10 • Successfactors 45 M • Capital H 25 M • Payscale 10 M • 3 new TA Vendors Silkroads, People. Filter, Trovix • Verified Person 10 M+ 3

Acquisitions and Divestitures CEO Breakfast Series. • Kenexa ( Webhire, Scottworks, Knowledge Workers +++) • Silkroads (Openhire, Human Assets Technology, +++ ) • Sumtotal (Docent, Click 2 Learn, DKW, Pathlore) • Authoria (Hire. com, Aim +++) • Kronos (Clarity. Matters+++) • SABA (Centra+++) • Infor ( SSA Global , Geac) • Vurv (Recruitmax) Inscope, CCH Knowledge Point, Compensation +++) • First America (Skillcheck, Trustar, Recruiternet, 26 mergers in 2 years + • Talx (Pan and Income tax credit firms and Employment Verification +++) • Oracle ( Peoplesoft, JD Edwards, Seibel) • Previsor/ Qwiz (Epredix, Brainbench, PDSI). • Nice (Performix Technologies) • Monster Divesting traditional Advertising Business • Yahoo Closing ATS Division 4

Hot market ? CEO Breakfast Series. • Kenexa ( Sales 65 M Market Value 642 M 9. 9 x sales) • Taleo (78 M / MV 261 3. 3 x Sales ) • Sumtotal (1. 2 Times sales ) • SABA (1. 4 Times Sales ) • First Advantage (643 M, MV 1. 4, 2. 2 x sales) • Talx ( Sales 158 M / MV 852 / 5. 5 x sales ) • Workstream ( Sales 26 M/ MV 74 M 2. 3 x sales • Pilat (. 5 x sales + cash ) • Kronos Sales 518 M, MV 1, 518 2. 5 x Sales • Hewitt (Sales 2. 8 B/ MV 2. 78. 1 x sales • Manpower (Sales 5. 6 B / 16 B /. 35 x sales 5

Messaging 1. The Leader in Human Capital Management Solutions 2. To accelerate client performance and profits through innovative and compelling solutions. 3. As a leading provider of talent management solutions, 4. Global leader in providing on-demand, Web-based, integrated talent management solutions that help organizations align, develop, motivate and retain their employees. CEO Breakfast Series. 6

Messaging 1. Is a global human resources outsourcing and consulting firm delivering a complete range of integrated services to help companies manage their total HR and employee costs, enhance HR services, and improve their workforces 2. Leading Supplier of integrated strategic human capital management (HCM) solutions. 3. Is a employment process outsourcing, employee research, including behavioral assessment and employee surveys, and software to help companies hire and retain a more productive workforce 4. Leading information services company in the human resource, retail and transportation markets. CEO Breakfast Series. 7

Metrics – Myth or Reality Market Leaders PWC Starts in Benchmarking Business Doublestar and CLC set standards in real time dashboards Apophecy and Cognos enter market (SAS/ BO/Hyperion? ) Taleo, Acquire, Kenexa introduce Metrics modules CEO Breakfast Series. 8

Labor Trends Where Will Tomorrow’s Workers Come From? Growth rate of world’s labor force will slow down over next 10 years. Of the 460 million new, young jobseekers, only 3% will be from Europe and NA. North America & Europe Rest of World Asia Source: ILO World Employment Report 2001 CEO Breakfast Series. 9

What the Future Holds in the U. S. : Next Ten Years Talent Shortage + Increased Job Creation Total positions to be filled: Number of jobs to be vacated: 32 million Number of jobs to be created: 20 million Total positions to be filled: 52 million Total potential employees available: 29 million Projected employee gap: 23 million Source: Bureau of Labor Statistics CEO Breakfast Series. 10

And the Population Pyramid Reshapes Population Profiles (U. S. ) 1950 1998 65+ 8% 65+ 2050* 12% 65+ 21% 20 – 65 58% 20 – 65 59% 20 – 65 54% 0 – 20 34% 0 – 20 29% 0 – 20 25% Males Females Total Population: 158 million CEO Breakfast Series. Males Females 274 million Males Females 348 million 11

Five Decade War for Executive Talent Declining Supply of Future Executives Number of 35 -44 year-olds, fall by 15% between 2000 -2015 Number of 45 -54 will rise Downsizing: eliminated developmental roles-deputy jobs Executives not prolonging careers Hottest talent has shelf life of 10 days--then they are gone Number of 35 -44 year-olds in the U. S. Index: 1970 = 100 Source: United Nations CEO Breakfast Series. 12

New Entrants in U. S. Labor Force by 2008 White Males 30% Women and Minorities 70% CEO Breakfast Series. 13

Minorities Will Become the “Emerging Majority” 400 U. S. Population by Minority/Non-Minority Group: 2000 - 2050 300 250 Millions 200 150 100 50 0 2005 Source: The Minority Business Development Agency CEO Breakfast Series. 2010 Non-Minority 2015 2020 2025 2030 2035 2040 2045 2050 Minority 14

Talent Acquisition/ Talent Management / Human Capital Management Talent Acquisition = Sourcing, Assessment, Selection, Backgrounding, Workflow to Hire, Onboarding +++ Talent Management = Talent Acquisition + Performance Management + Succession Planning+ Compensation Management + Learning Management + Content +++ Human Capital Management = Talent Management + Benefits + Payroll + HRIS + Time and Attendance +++ CEO Breakfast Series. 15

Human Capital Management Integrate where possible • Follow the CEO Breakfast Series. 16

Contact Information Debbie Mc. Grath CEO HR. com 905 727 1340 x 104 dmcgrath@hr. com CEO Breakfast Series. 17