Benchmarking is comparing qualities between companies, identifying the most successful and integrating them into the company’s procedure.
It can help companies identify gaps between techniques in their companies and similar practices in more successful companies.
HR leaders have a responsibility to establish a functional benchmarking through the following ways:
Elaborating the area of attention
HR leaders can work together with colleagues to pinpoint the issue that need to be improved, and formulate a question that the benchmarking process will address.
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For example, a company looking to hire in-house brand marketing designers could ask: what compensation can we offer that fits the company budget and needs, as well as attracts and retains talent?
Identifying the measurements
Difference metrics allow HR leaders to compare specific aspects of their company with those of other companies. HR leaders can measure quality of hire, turnover rate or quality of work.
Professional HR leaders engage in extensive, in-depth research to find external information that accurately corresponds to their measurements. They often purchase benchmarking reports that save them from having to sift through irrelevant information and provide accurate, pertinent data.
Studying the gaps
Comparing internal and external metrics, HR leaders should ask what their organization can do to achieve the success that other companies have reached. Based on the data they collect; HR leaders can implement changes that align with company strategy.
If for instance, a company prides itself on high base salaries; they decide to decrease funding for employee wellness programs and increase base pay. This way, the employer can offer a more competitive edge for designers’ compensation plans, while maintaining alignment with the high base salary strategy.
Design a plan to implement the changes. HR leaders and colleagues can collaborate to implement an executive-backed plan that achieves the designated goals. Creating a detailed plan that meshes with the company culture can increase the chances that employees will readily accept the new changes.
Studying the long term results
After a specified period, HR professionals should follow up to ensure that the new changes are leading to positive results, and then provide a detailed report to distribute to collaborators.