Benchmarking

Benchmarks are the performance standards an organization sets for employees. Rather than evaluating performance in the abstract, benchmarks give managers a defined reference point: this is what good looks like in this role, and performance is measured against it.

Setting benchmarks involves reviewing business goals, identifying best practices, and translating that into concrete metrics employees can work toward. The process sits at the foundation of goal-setting: before a manager can have a meaningful performance conversation, there needs to be an agreed standard to measure against.

Done well, benchmarking drives consistent improvement across teams. When everyone is working toward the same defined standards, it becomes easier to spot where performance is strong, where it’s falling short, and what needs to change.