What is the purpose of HR benchmarking?

The purpose of HR benchmarking is primarily to compare business results to industry standards. This process involves analyzing data and metrics related to human resource practices and performance against those of other organizations, typically within the same industry or sector. By doing so, HR professionals can identify areas for improvement, understand competitive positioning, and make informed decisions based on best practices.

Benchmarking helps organizations evaluate their effectiveness in various HR functions such as recruitment, retention, employee development, and overall workforce management. This comparative analysis provides valuable insights that can be used to enhance organizational performance and effectiveness, as well as to align HR strategies with broader business goals.

While establishing new HR policies, reviewing employee satisfaction surveys, and determining training budgets are important aspects of HR management, these tasks are not the primary aim of benchmarking. Rather, benchmarking serves as a foundational tool that informs such activities by providing a clearer picture of how an organization measures up against established norms and standards in the HR field.