Benchmarking is a valuable practice for businesses because employers are constantly looking for ways to improve their operational efficiency and effectiveness. A business can benchmark by comparing its practices to departments within the business, competitors within the industry, or businesses outside of the industry. Working with a benchmarking consulting firm can be a great resource to improve business practices and employee benefits to increase business success, but it is important to choose a reliable benchmarking consulting firm because misleading advice has the opportunity to potentially harm a business.
Types Of Benchmarking
There are many different types of benchmarking that businesses use to help understand the areas that they need to improve to meet their goals. Outlined below are four common steps of benchmarking that businesses tend to follow:
This is typically the first benchmarking step. The goal is to identify the performance gaps within a certain business. By using performance benchmarking, a business is able to identify specific areas that can be improved and then set the goals that are needed to reach these improvements to get to where they want to be.
This is typically the second benchmarking step. The goal is to identify where and how the performance gaps occur within a business. By using practice benchmarking, a business is able to identify specific applications that they can incorporate into their business plan in order to meet their goals.
Typically the third benchmarking step is to compare performance benchmarking and practice benchmarking within the business. By using internal benchmarking, a business is able to compare departments within the organizations to improve the practices and performance of the departments that are not performing as well as others .
The last and most important benchmarking step is to compare performance benchmarking and practice benchmarking outside of the business. By using external benchmarking, a business is able to understand where they are within the industry and the business world. Businesses get the best outcome from external benchmarking because they are able to form reasonable baselines, goals, and practices based on the success of other companies.
Companies that are willing to change business practices and benefit offerings based on the success of departments within the business and businesses outside of the company tend to meet company goals and surpass expectations.
Benchmarking consultants can be a significant asset to a company, however it is important to find the right benchmarking firm to provide the best advice because a benchmarking firm that provides misleading advice can potentially harm a business.
How To Find The Right Benchmarking Firm
Asking potential benchmarking consulting firms questions is imperative to finding the right consulting firm for your business. Some questions that businesses may ask a consulting firm are outlined below:
- How much knowledge do you know about the industry?
- How much experience do you have working with this industry?
- Which benefits do employees in this industry tend to prefer?
- What benefit and lifestyle trends have you noticed in the past five years for this industry?
- What are our competitors doing that we are not?
- Are we offering the same types of benefits as our competitors?
- How well are we performing compared to the industry leaders?
- How can you help us attract and retain top talent?
- What are some strategies that we can use to attract top talent in the industry?
- What are some strategies we can use to retain our employees?
- How will you make our benefits stand out compared to the competition?
- How can you make our benefit offering appealing without exponentially increasing employer cost?
- How are your cost-effective strategies better than traditional benefits?
By asking potential benchmarking firms questions, businesses are able to isolate the benchmarking firms that align with their goals and values. Employee benefits are a significant part in attracting and retaining top talent in the industry, so it is important for benchmarking firms to have a strategy that is cost-effective for the business and fulfilling for the employees.
Reach Out To A Benchmarking Consulting Firm Today
Contact New City Insurance today to learn how our benchmarking and benefit strategies can help your business meet its goals. Our benefit strategies are designed to customize benefits based on employee preferences while reducing the cost to the business. By using our customized benefit strategies, we can help you attract and retain top talent that can lead to your business growing exponentially.