Posted by Trakstar • August 10, 2022 • 5 min read
Benchmarking is a practice and tool used to help leaders compare with industry peers and find out “where they stand” against their competition. For years, benchmarking was considered something used solely in the mathematical, technical sense – but that isn’t true anymore. HR benchmarking helps leaders make decisions around the human resources policies, processes, and performances across your organization. Today, Trakstar is launching Benchmarking for Perform to help HR leaders understand what is going well at their companies, know what they need to improve upon, and present those findings to their managers and bosses.
Increasingly, organizations have to be more thoughtful when measuring performance and giving performance reviews. HR leaders have been tasked with the nearly impossible job of retaining and engaging their best employees while improving those who aren’t performing well. The value of benchmarking is that it looks deep into your organization’s metrics and then compares your performance to that of your industry peers.
The Perform Benchmarking Dashboard offers admins comparison to both industry and company size peer groups, and the ability to gain insight into the overall strength and resiliency of your people through the lens of employee retention.
By using Benchmarking for Perform, HR leaders can understand where they stand within their industry when it comes to hiring, retaining, and engaging top talent. Benchmarking is shown every quarter, so you can easily pull the analysis for quarterly board meetings, QBRs, and more. This information can be used to set SMART goals, focus on hiring or training efforts, or just to get an overview of your workforce.
Benchmarking uses aggregated, anonymized Trakstar data to compare performance between similar companies. Our customers learn how they individually stack up in performance scores and retention rates, among other metrics. Tying your retention rates to performance percentiles highlights trends across these performance groups and illuminates potential areas of improvement. See how your organization compares to your Industry and Company size peer groups for these metrics.
Going even further, Benchmarking them helps you understand what you can do next to improve your workforce or stay on the pathway to success with actionable tips.
Alongside Insights, Benchmarking for Perform helps HR leaders:
Insights without benchmarking gave HR leaders information about their metrics and performance over time regarding performance reviews, educating and upskilling the workforce, and hiring. Benchmarking compares performance review data and retention metrics against industry and company-size peer groups.
Benchmarking is most valuable when you look at your company in relation to other organizations and companies just like yours, meaning they operate in the same space and are likely your direct competitors (but they don’t have to be). Every industry is different and while some are thriving, others have issues retaining their top talent.
Benchmarking helps you see where you stand against others that operate in the same industry you do, whether that is healthcare, government, construction, for example, or something else. It also means they have the same approximate number of employees.
Benchmarking is part of the Trakstar Perform dashboard. You will be able to access it by going directly to the Insights dashboard on the navigation bar. Your information will automatically generate and you’ll be able to see where you stand against your industry peers.
HR leaders need Benchmarking for the same reason any other business needs it: to determine where they stand and know how that compares to their industry peers. Right now, there’s much more competition for the most talented and influential employees. Retention is a focal point for many HR leaders who want to grow their organizations and reach KPIs. We hear anecdotally how things are going, but is that really what’s happening? Benchmarking takes away some of that ambiguity.
Benchmarking allows HR leaders to inform everyone within the organization, including the C-Suite, where performance and talent management efforts are reaching their goals and where the business must dig in to improve. Within Perform Benchmarking, HR leaders have access to presentation-ready reports that inform executives and board members about retention trends and how those rates compare to other companies within the industry. The information is presented thoroughly but concisely to provide the most value. These leaders are then given materials surrounding best practices to help them achieve their goals.
Interested in learning more about benchmarking information surrounding your performance reviews? Insights Benchmarking is part of the Trakstar platform! Insights and Benchmarking are just the starting point for this amazing product that will transform your HR department, help your managers conduct better reviews, and give your employees the tools they need to be successful and level up.
To find out more about the Trakstar platform, schedule a demo today. If you are already using Trakstar, you will see Benchmarking on your Insights dashboard for Perform today.
Want to know more about Insights Benchmarking? Be sure to check out our blog with the minds behind the product here: https://www.trakstar.com/blog-post/benchmarking-faqs-answered/.