Even though the HR department of an organization stocks up enough data, it needs benchmarking data to beat the competition in key performing areas.
In this article published at SHRM, Dave Zielinski explains that collecting benchmarking data is a meager part of the challenge. Using it to drive constant growth and development should be the ultimate objective.
Need for Benchmarking
Benchmarking is a constant process to occasionally review and measure challenging yet improving practices. It helps in assessing the existing value of the organization in the ever-growing market competition. In fact, benchmarking may prove beneficial in extending vital support to HR leaders to take strategic decisions.
The benchmarking data may also support the HRs to make a tough strategic or cultural change. This way, the HRs can deliver senior authorities and executives a real estimate of where they are at present, and what action would be appropriate for them.
Beyond Imitation to Constant Improvement
Even though benchmarking data helps in finding the current position of a firm to industry averages, it does not prove as an impetus to constant improvement. However, if the organization is using it as a scorecard against the growing market competition, then there are high chances of going in the backward direction.
Diversity and Inclusion
This is one of the major areas enticing major benchmarking interest within HR. In fact, diversity benchmarks limited ‘reputational risk’ in addition to a credence that diversity and inclusion practices may improve business objectives.
The organizations expanding in newer markets or enduring mergers or acquisitions may find adequate value in benchmarking data. This data may prove beneficial in determining the competitive compensation rates (CCR) of the organization in unfamiliar markets or to create fitting spans of management control while evolving new organizational structures. Click on the following link to read the original article: https://www.shrm.org/ResourcesAndTools/hr-topics/technology/Pages/HR-Benchmarking-Technology-.aspx