Explore Content Related topics When companies make initial forays into benchmarking HR effectiveness, they survey customer perception. This provides input into growth and development, as well as the way investments are prioritized. Some use balanced scorecards to focus on metrics like speed to productivity, while others commit to fill positions within a set time through service-level agreements.
This is the most important question in management's decision to begin the benchmarking process. McNair and Leibfried suggest several reasons why companies may embark upon benchmarking: Companies may decide to benchmark internally, against competitors, against industry performance, or against the "best of the best.
Competitive benchmarking looks at a company's direct competitors and evaluates how the company is doing in comparison. Knowing the strengths and weaknesses of the competition is not only important in plotting a successful strategy, but it can also help prioritize areas of improvement as specific customer expectations are identified.
Industry benchmarking is more trend-based and has a much broader scope. It can help establish performance baselines.
The best-in-class form of benchmarking examines multiple industries in search of new, innovative practices. It not only provides a broad scope, but also it provides the best opportunities over that range. Benchmarking can focus on roles, processes, or strategic issues. It can be used to establish the function or mission of an organization.
It can also be used to examine existing practices while looking at the organization as a whole to identify practices that support major processes or critical objectives.
When focusing on specific processes or activities, the depth of the analysis is a key issue. The analysis can take the form of vertical or horizontal benchmarking.
Vertical benchmarking is where the focus is placed on specific departments or functions, while horizontal bench-marking is where the focus is placed on a specific process or activity. Concerning strategic issues, the objective is to identify factors that are of greatest importance to competitive advantage, to define measures of excellence that capture these issues, and to isolate companies that appear to be top performers in these areas.
Benchmarking uses different sources of information, including published material, trade meetings, and conversations with industry experts, consultants, customers, and marketing representatives.
The emergence of Internet technology has facilitated the bench-marking process. The Internet offers access to a number of databases-like Power-MARQ from the nonprofit American Productivity and Quality Center-containing performance indicators for thousands of different companies.
The Internet also enables companies to conduct electronic surveys to collect bench-marking data. How a company benchmarks may depend on available resources, deadlines, and the number of alternative sources of information.
Some of the major types of benchmarking are as follows: Metric benchmarking is the use of quantitative measures as reference points for comparisons. Best-practice benchmarking focuses on identifying outstanding techniques. Information technology benchmarking includes data processing, systems analysis, programming, end-user support, and networks.
Application benchmarking includes system analysis, development and maintenance programming, and functionality.HR Source provides expert human resources and management support to more than 1, organizations.
Benefits include an HR Hotline, benchmarking surveys, compensation and HR consulting, and training and organizational development services. Benchmarking Tools.
Find out how your organisation compares against your industry counterparts in wages, employment conditions and staff turnover. HR benchmarking provides insight into successful practices at Federal SSCs and private enterprises.
This insight is a significant benefit particularly given the perpetual expectation that HR do more with fewer resources. In the future, HR benchmarking will also provide.
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Connect With Our Community. CUPA-HR Connect is the online community for higher ed HR professionals. Post your questions in a forum, or subscribe to a . Benchmarking is the process through which a company measures its products, services, and practices against its toughest competitors, or those companies recognized as leaders in its industry.