What is a Benchmark Job?

A benchmark job enables the accumulation and analysis of the labor market within a company, industry, or regional area. Doing so enables employers, researchers, government agencies, and other entities to make various types of determinations, from hiring to promotions to training.

How Organizations Benchmark Roles

Human resources professionals will typically handle the investigation and administration of the bench-marking. The first step in determining which jobs will be bench-marked and what salaries, requirements, and responsibilities will be included in a role within an organization is to research.

To complete the data collection, a survey of salaries of similar positions is conducted, including those within a geographic area and across an industry as a whole. Surveys can be completed several different ways. Some organizations have managers and other employees complete worksheets to determine the work traits and aptitudes that are most essential to perform specific job functions. In addition to surveys, research is conducted to identify labor trends and statistics related to a specific position.

After Data Collection

Analyzing the worksheets, survey responses, and research of a benchmarked position enables organizations to outline all aspects of a position. In some cases, salary ranges are compared within the organization as well. From that data, organizations are able to set the standard pay rates per position, along with establishing pay raise increases and increments.

Benchmarking also includes scaling the positions in order to adjust pay rates by entry level, lower management, middle management, and so on. This includes outlining the skills that a position will require an employee to have, education and additional training that are required, and the tasks that employees will have to complete in a given role. These factors drive the administration of several other human resources-related functions of an organization.

Hiring and Promotions

One specific way that benchmarking positions can be helpful for organizations is in the hiring process. Benchmarks enable hiring managers or human resource specialists to develop interview questions and application assessments that pinpoint the ideal candidates for employment.

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Another benefit is in terms of assessment of employee performance. A benchmark job not only determines the types of skills an employee must have, but it also sets up the goals and accountabilities that are integral to a position. During employee reviews, managers and human resources specialists can evaluate performance based on those goals.

Continued Development

Once a job is bench-marked with salary, skills, and other requirements, the addition of intrinsic traits that a candidate will need to best fit the position can also be added. Examples include work ethic, attitude, dedication and loyalty to a company, empathy in interpersonal communication, emotional stability, and willingness to accept coaching and ongoing training.

Organizations such as the Society for Human Resource Management offer examples of benchmarking reports and additional information on incorporating those reports into human resources functions.

The identification of a standard for an employee to meet in order to be hired for a position and be promoted or receive raises and additional benefits is often best established through the process of benchmarking. A benchmark job offers an objective evaluation tool and creates transparency and equality throughout an organization.