What is Benchmarking?
‘Benchmarking’ is the concept of measuring something against a set of standard metrics to set a base score. Benchmarks can be used in multiple ways to monitor a company’s performance both internally and with respect to the competition.
There are multiple kinds of benchmarking systems available for a variety of purposes. For example, one could set a base rate for a product, based on which a company can increase or decrease its price as per the market conditions.
Similarly, when it comes to HR, benchmarking can be used to set a base employee satisfaction index for the company, which can be used to measure against the current index to take corrective measures.