This week’s Fierce resource was originally published by SHRM and explains how organizations can benchmark human capital metrics.
There are dozens of reasons why organizations use benchmarking. With sales roles that deal exclusively with numbers, it can seem a lot easier to benchmark progress and use the data to support business strategy and goals. The Human Resources function at companies is no different and benefits from the same ability to align their human capital metrics to support overall business strategy.
Benchmarking is quickly becoming a necessary tool that all HR professionals must equip their departments with to accurately measure processes, practices, and results within their industry. When used correctly, benchmarking can show how an organization’s HR strategies can influence and shape organizational performance and company culture.
When a company decides to roll out a new human capital initiative, it is important to understand the expectations of what that program should accomplish by looking at competitors and similar organizations in their industry.
“Benchmarking can also create momentum for organizational change. For example, making changes to existing compensation practices may be difficult, unless objective benchmarking data are available that can support modifications.”
Read the entire article here.