What are the best ways to use benchmarking to improve employee retention?

1 Define your objectives

Before you start benchmarking, you need to have a clear idea of what you want to achieve and how you will measure it. What are the key indicators of employee retention in your organization? How do they relate to your strategic goals and vision? What are the main factors that influence employee retention, such as compensation, benefits, culture, training, career development, recognition, feedback, or work-life balance? How do you collect and analyze data on these factors? You need to define your objectives and metrics in a SMART way: specific, measurable, achievable, relevant, and time-bound.

2 Choose your benchmarks

Once you have defined your objectives and metrics, you need to choose your benchmarks. Benchmarks are the standards or references that you use to compare your performance and practices with others. You can use different types of benchmarks, depending on your purpose and scope. For example, you can use internal benchmarks, such as comparing different departments or teams within your organization; external benchmarks, such as comparing your organization with competitors or industry leaders; or best practice benchmarks, such as comparing your organization with recognized examples of excellence in employee retention. You need to choose your benchmarks carefully and make sure they are relevant, reliable, and valid.

3 Collect and analyze data

After you have chosen your benchmarks, you need to collect and analyze data on your performance and practices, as well as those of your benchmarks. You can use different methods and sources of data collection, such as surveys, interviews, focus groups, observations, reports, or databases. You need to ensure that the data you collect is accurate, consistent, and comparable. You also need to analyze the data using appropriate tools and techniques, such as descriptive statistics, charts, graphs, ratios, or indices. You need to interpret the data and identify the strengths, weaknesses, opportunities, and threats of your employee retention.

5 Review and update benchmarks

Benchmarking is not a one-time activity, but a continuous cycle of learning and improvement. You need to review and update your benchmarks regularly to reflect the changes in your organization and the environment. You need to assess the relevance and validity of your benchmarks and adjust them if necessary. You also need to look for new benchmarks that can inspire you and challenge you to achieve higher standards of employee retention. You need to keep track of the trends and best practices in your industry and sector and learn from them.

6 Benefits of benchmarking

Benchmarking can be a great tool to help you improve your employee retention. It can provide insights into your current performance, identify gaps and opportunities for improvement, and allow you to learn from the experiences of other organizations. Moreover, it can help you adopt best practices and set realistic goals, as well as monitor and evaluate your progress. Ultimately, benchmarking can increase your competitive advantage, enhance your reputation, and boost employee satisfaction, engagement, and loyalty.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?