How Do I Start a Benchmarking Exercise for a 500-Person BPO in Pune?

Hi All,

Please help me with benchmarking, as I am working on a benchmarking exercise for my company. We are a captive BPO in Pune with a strength of 500 people. So far, I have managed to get the official meaning of benchmarking and why we do it.

Regards,
Maksood

Benchmarking is done to control activities, such as standardizing salary and designations. It involves setting a clear line to determine the package or designation of an employee, reducing ambiguity in pay and roles.

Regards,
MANOJ KUMAR

Hi Manoj,

Standardization of salary can be one of the areas where we can do benchmarking. I did not understand your point regarding designation. Also, is benchmarking only confined to salary and designation, or are these the only two areas on which we compete with our competitors? Please share your important views with me.

Best regards,
Maksood

I am attaching some articles. Hopefully, these will be useful.

Benchmarking Model

Benchmarking is the search for industry best practices which lead to superior performance. The pioneer of competitive benchmarking was the American company, Xerox Corporation. The company demonstrated the usefulness of observing and learning from superior performers by benchmarking their competitors. Through the knowledge they gained, they managed to dramatically improve their productivity and significantly reduce their cost of production.

The Benchmarking Process

Phase One: Planning

Step 1: Identify what functions, products, or outputs are essential practices and should be benchmarked.

Step 2: Identify external organizations or functions within the own organization with superior work practices for comparison.

Phase Two: Analysis

Step 3: Determine what data sources are to be used. If an organization has up-to-date personnel/payroll systems, it should be able to measure a range of HR practices and outputs relatively easily. Valuable information may also be available through personnel records, surveys, or even interviews.

Step 4: Determine the current level of performance. This will enable the gap in performance to be identified. Camp emphasizes the importance of a "full understanding of internal business processes before attempting comparison with external organizations." Baseline measurement also provides an objective basis upon which to plan and act.

Phase Three: Integration

Step 5: Develop a vision for future operation based on the benchmarking findings. Focus should be directed on the quality of best practice procedures/practices and how these can be not just emulated but improved upon by the organization.

Step 6: Report progress to all employees on an ongoing basis. Communication and feedback are crucial components of benchmarking.

Phase Four: Action

Step 7: Establish functional goals linked to the overall vision for the organization.

Steps 8 & 9: Develop action plans and implement the best practice findings. This should be the responsibility of the people who actually perform the work. Periodic measurement and assessment of achievements should be put into place.

Step 10: Update knowledge on current work practices. This is, in essence, the crux of continuous quality improvement.

Regards

Hi Vrishi,

Thank you very much for your valuable suggestions on benchmarking.

My plan is to benchmark the comparison companies on various procedures, viz; recruitment and selection, the induction process, performance appraisal, learning and development, employee relations/rewards and recognition, various communication channels, salaries, retention strategies, coaching and mentoring, etc.

My concern is on how to lay the groundwork for the above-mentioned areas and how to initiate this process (I mean how can I extract the information on the above practices from competitors as these are very confidential).

I would appreciate your comments on the same.

Regards,
Maksood.

The basic groundwork for all these points that you have mentioned could be a little bit of literature on these topics and linking them to the success of an organization (why are they required). As for information, you can visit the websites of different companies.

Regards,
Rishi

Welcome to the forum! I have recently joined and wanted to share some information about my work. I am currently employed by a private limited company in the power sector (UPS) with around 100 employees. Additionally, I provide consulting services to a small IT company. Salary benchmarking is a key aspect for us.

In my opinion, a good approach would be to benchmark salaries based on certifications and experience. For example, an individual with a 10/12 class background along with a diploma/certificate/ITI at an entry level in the UPS service industry might typically earn between 4-8K per month (depending on the company's profile). After gaining 2 years of work experience, the same person could be eligible for a salary ranging from 6-10K.

I am curious if anyone would be willing to share similar salary details specific to IT companies. :)

Thank you for sharing your thoughts!

Hi,

Please help me with benchmarking. I am working with an IT company where 50 employees are working. Can I use the concept of benchmarking for my company?

Thank you.

Hello Rishi,

I am Swathi, a new member of this forum. I am working on "Benchmarking of HR practices in the IT industry" as part of my Ph.D. research. I am confused about how to decide on the best company to benchmark against. For example, if I want to benchmark all HR practices in the IT industry, how do I choose a company as a benchmark from top IT companies like IBM, TCS, WIPRO, etc.? What should be the basis for selecting the benchmark company? Please suggest as this is urgent.

Thank you in advance.

The basic groundwork for all the points you mentioned could include a bit of literature on these topics and linking them to the success of an organization (why they are required). For information, you can visit the websites of different companies.

Regards,
Rishi

Hello Maksood,

I am Swathi, a new member of this forum. I saw your posting, and I am also working on the same topic, "Benchmarking of HR practices in the IT industry." I am currently in the process of conducting a literature survey, and if you have developed any insights on the topic, please do help me. I will also share any valuable information I happen to gather.

Regards,
Swathi

Hi all, our company is planning to set up its own training center for which we are in the process of benchmarking.

Hi all, Our company is planning to set up its training center, for which we are in the process of benchmarking. I have prepared a questionnaire for my benchmarking partners that did not impress my boss. Kindly help me with a few samples or templates on how to prepare it. What questions do I need to include?

Information Needed for Benchmarking

I need to know the complete history of my benchmarking partner, starting from the square footage of the center to the programs delivered there.

Kindly assist. Thanks in advance.