(Solution) 5HR03 (AC3.2) Evaluate the most appropriate ways in which benchmarking data can be gathered and measured to develop insight
Solution
Benchmarking
This practice is defined by Findlay et al. (2021) as comparing a specific organisation reward strategy, pay structure and benefits in line with industrial standards for enhancing fairness in organisation operations and competitiveness;
The rationale of benchmarking is informed by need to ensure organisations are attracting and retaining qualified employees, manage potential reward disparity and matching rewards with industrial needs/expectations. For the case of Eco-Insulate, suffering from an increased turnover, benchmarking would assist in understanding how other organisations are managing competitive rewards, issued benefits and incentive schemes. The outcome inform need for appropriate adjustment.
Approaches of Benchmarking
Published Data– Through the embrace of government published reports, industry pay surveys and compensation frameworks available in different organisations is used.
The strengths/advantages of published data entail readily accessed and costs managed since entities looking for the data can easily source it. This is sourced from the Office for National Statistics and Industry Associations (Jayathilake et al., 2021). Further, the reports offer broad-based market insights relevant for assisting Eco-Insulate assessing rewards trends.
The weaknesses/disadvantages entail data being non-specific for aligning it in the eco-friendly manufacturing industry with comparison success limited. Further, publications could have overstayed in terms of number of years therefore offering inaccurate data to aid relevant decisions made.
Pay Clubs– This is defined in Li et al. (2024) as including various organisations operating in similar industries. They are involved in sharing information/data on rewards advanced and types of benefits issued.
The strengths/advantages of this entail relevance of the data with specified to their industry of operations. This is for Eco-Insulate………………
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