One of the services we provide at Hire Up Staffing is Benchmarking. Our process is a little different than what this article is about, but the principal is similar. What we do involves extensive screening and assessments of all job applicants. We then compare the results to a standard in turn, matching the right candidates to the right positions. The same idea can be applied to your business to determine how it stands up against it’s competitors. Benchmarking your business gives you a clearer picture of where you are in the industry, as well as where you could improve in order to increase profits.
Compare to Be More Competent
It makes the most sense to compare your business against those in the same industry. However, it’s also important to consider your market position and your company’s objectives, among other things, as those may affect the comparisons you want to make.
It may also make sense to benchmark within your company. For instance, compare attendance rates between different departments, so you may know or even suggest the best practices when it comes to punctuality and productivity. You will also have an idea of which departments are the best performing in your business.
Tips On What to Benchmark
There are many reasons to benchmark, but it takes a lot of careful consideration and analysis. Here are a few to take into account:
* Think more creatively on how to improve business, both internally and externally
* Survey and ask staff for input
* Compare your company to similar ones, and see what makes their processes work successfully
* Inversely, also consider what doesn’t work for them and teach yourselves how to avoid those mistakes happening to your business
Some Ways to Benchmark
Here are just 7 examples of aspects of your business to assess, to see if your company measures up:
1. Focus on your key business drivers, the processes that strengthen your company’s success.
2. Analyze whom to compare your business to, internally and externally.
3. Study other businesses’ objectives and try to bring what they have into your business.
4. Evaluate how effective your processes are, including quality controls, production techniques, and others. How well are you using your technology, and are other businesses taking advantage of newer technologies that could be keeping them ahead?
5. Check your resource allocation. This may include counter-checking your number of employees against similar businesses. Where do your more successful counterparts invest in people? Are they spending more on marketing, or in hiring more IT people, or for more updated equipment?
6. Compare your costs against others in the industry. This may include employee wages, utility bills, and even investment on research and development.
7. Measure efficiency and productivity, such as calculating sales per employee (if applicable). Also consider marketing in this, especially if they are pitching your products and services to the correct niche market.