HR Benchmarking: Engagement, Loyalty and eNPS
One of the strategies for increasing employee engagement and loyalty is related to the use of benchmarks. By comparing your company's performance to benchmarks, you can discover successful tactics for attracting and retaining valuable talent.
Let's talk about what benchmarking is and how to use it to develop employee engagement and loyalty.
What is benchmarking in HR
Benchmarking is a comparison of your activities with other companies in order to improve your own performance.
In research on employee engagement and loyalty, benchmarking is a tool that shows the level of employee engagement and loyalty in your company and in competing companies. The benchmark for comparison is the benchmarks of other companies - the data against which you will compare your company's performance.
Happy Job Benchmarking is based on 10 engagement metrics, 5 loyalty metrics and eNPS metrics. After the analysis, you will find out:
- Are the metrics for employee engagement and loyalty within the industry and the market as a whole?
- Where the average performance of the company is compared to competitors.
- What strategies are currently being used by your competitors to improve employee engagement and loyalty.
- How real is the risk of an increase in the number of employee layoffs.
- Whether there's a risk of loss of employee productivity.
Through benchmarking, you can learn about the practices of other organisations to attract and retain the best employees. HR benchmarking is a benchmark that helps you choose the right path in developing employee engagement and loyalty..
Studying benchmarks of other companies allows you to understand at what stage of development their and your corporate cultures are, and to plan to improve it.
There are several types of benchmarking:
- internal by the company,
- external intersectoral in the country,
- external intra-industry activities in the country,
- external to the world.
Let's consider the difference between the types of benchmarking, and try to find out which of them will be most useful in your practice.
Type 1: Internal benchmarking
Internal benchmarking - comparing the performance of different departments in the same company. In-house benchmarking helps you determine which HR practices are most effective in your organisation and scale them up. This will increase the indicators of employee engagement and loyalty throughout the company.
Features of internal benchmarking:
After analysing the internal indicators, you need to develop a plan to improve them: engage the leaders of successful teams and facilitate the transfer of best practices within the company.
Type 2: External Cross-Industry Benchmarking within a country
External cross-industry benchmarking is benchmarking against the performance of other companies. This type of benchmarking on the HappyJob platform includes data from organisations within a country.
Features of external cross-industry benchmarking:
External assessment is a starting point to understanding an comparing your company to other organisations in the market.
Type 3: External Industry Benchmarking internally
External industry benchmarking is benchmarking against other companies in the same industry. On the Happy Job platform, the benchmark database includes companies from 18 industries.
Features of external industry benchmarking:
The comparison can only be trusted if the provider has a large sample. Happy Job users receive a large sample of data for comparison: to date, 3,500,000 respondents have participated in our surveys. They are employees of more than 400 companies from 18 industries.
In Happy Job , industry benchmarking compares the results of at least seven companies. Average, worst and best values are taken for comparison. This sample provides a comprehensive understanding of the trends and technologies used in competing companies.
It is important to note that we do not disclose company names and data for comparison. Only anonymous values are included in the reports.
The most common approach in benchmarking is to combine external and internal metrics. This combination gives a comprehensive result that can be used to further develop the engagement and loyalty of staff and the HR brand of the company.
Type 4: External Benchmarking around the world
External benchmarking around the world is a benchmarking against the performance of other companies around the world.
This type of benchmarking has its own nuances in its application. It should be borne in mind that companies from different countries, even from the same industry, will be influenced by a huge number of specific factors - local legislation, the mentality of the country's inhabitants, including cultural and religious characteristics, etc. Also, the providers of data on foreign companies, as a rule, are foreign providers of engagement and loyalty research. These organizations have a particular approach to building a benchmark base.
Features of external benchmarking around the world:
Every organisation is unique
No two organisations are alike, just like no two people are exactly alike. The experience of an organisation, its culture and values are formed under the influence of various factors: economy, personalities of leaders, employees, difficulties facing the organisation. Naturally, under the influence of these circumstances, the indicators of various aspects of engagement and loyalty will differ from other companies. You cannot rely only on the best or worst ratings in the industry. These are just guidelines.
Benchmarks are important, but the ultimate goal is not to achieve a benchmark, but to improve your own performance. Benchmarking is an ongoing process with the goal of adopting the positive experience of other companies and developing your own performance. Study labour market trends, the level of employee engagement and loyalty in your and competing companies together with reliable providers of this service. Only work with reliable data to achieve growth and excellent engagement and loyalty rates.