Benchmarking is the process through which you compare one organization to another. Many businesses benchmark their own company against their competitors to find out if they are staying competitive in the industry.
You can benchmark against many different measures, depending on what you want to find out. Pay benchmarking is a commonly used technique to find out if you are paying your staff enough; otherwise, you may lose top talent to your competitors. You can also benchmark HR data, such as attrition rates and time to hire. You may also review other policies and procedures to benchmark against your own.