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HR Benchmarking | Meaning and Definition

What is HR Benchmarking?

HR benchmarking compares and contrasts businesses, sectors, organizations, positions, procedures, and practices using both quantitative and qualitative data. It’s utilized to give firms input on how to enhance their people’s practices and to question existing methods.

Types of HR benchmarking:

Internal benchmarking — This sort of benchmarking uses existing or contributed data to see how divisions, teams, and units within a company compare to one another. This is a simple method to see which teams are the most active, which departments are the most productive, which regions have the highest response scores, and so on. The organization’s norm would be determined by taking the average of all collected data. For instance, if your company evaluated involvement across all teams and departments and the client satisfaction score was +50, which would represent the average level of engagement. You may then see whether teams fall under or beyond that mark. This will assist you in developing the best employee engagement strategy for your company.


Benchmarking against other organizations (external benchmarking) – This benchmark compares your company to other businesses. It gives you a decent idea of what the industry average is and if your company is functioning well or poorly. When deciding on your HR strategy for the year, these standards are really useful. They assist you in establishing a favorable position in your marketing environment.

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