Benchmarking Avoid comparing yourself to the industry average.
Below is a MRR and PLR article in category Business -> subcategory Management.
Benchmarking: Why You Should Avoid Comparing to the Industry Average
Summary
Many organizations regularly conduct employee surveys to drive meaningful change and boost success. However, some focus too heavily on comparing their results with industry averages, which can be misleading.
Article
Companies often conduct employee surveys annually, biennially, or at irregular intervals. These surveys can be powerful tools for driving change and fostering success. However, some organizations fall into the trap of comparing their survey results to industry averages, which can limit potential growth.
Survey companies frequently market their services by offering comparisons with average scores from various organizations in their databases. This approach might seem appealing because we are conditioned from a young age to compare ourselves to averages, just like in school.
Yet, when applying to universities, students quickly learn that being merely average isn't enough. Admissions require higher standards, and students aim to surpass them. Similarly, organizations should strive to exceed mediocrity, not merely benchmark against it.
Organizations often make the mistake of focusing on these average comparisons for overall survey scores and individual questions. Instead, they should ask themselves why they are conducting the survey in the first place and how the results will support their strategic goals.
Surveys should serve as a tool to gather valuable employee insights, improve workplace practices, enhance employee experiences, and ultimately boost customer satisfaction and profitability. If these goals are not being met, the purpose of the survey itself becomes questionable.
While comparing oneself to top industry performers can be a valid strategic objective, aiming only for average performance offers little value. Being better than average may instill pride, but it can also create a false sense of security. Leaders should ask, "Are we truly achieving excellence that will sustain us long-term?"
Consider the retail sector, which typically faces high employee turnover. Gap Inc. Canada once struggled with significant turnover rates?"39% for store managers and 48% for associate managers. By conducting an Organizational Health Survey with Entec Corporation and implementing its recommendations, Gap reduced turnover rates significantly within a year. This led to enhanced employee retention, improved shopper scores, and considerable profits, transforming their Canadian division into one of their most profitable globally.
Gap's success was not due to complacency with industry averages. Had they settled for average turnover rates, they would have missed out on significant savings and growth. Retaining well-trained managers drove more substantial gains than merely cutting recruitment costs.
Key Considerations for Employee Surveys
1. Develop Clear Strategic Objectives: Align surveys with specific goals.
2. Measure Progress Against Objectives: Use data effectively.
3. Communicate Survey Results to Employees: Foster transparency and engagement.
4. Implement Positive Changes: Act on findings to drive improvement.
5. Benchmark Against the Best: Avoid average comparisons.
Ignoring these steps can lead to low survey participation, rising employee cynicism, disengagement, and missed opportunities for performance enhancement.
Conclusion
Focusing on industry averages can distract organizations from vital questions: What are we doing well? Where can we improve to build a stronger organization? To truly advance, compare to the best and stay focused on meaningful growth and innovation.
You can find the original non-AI version of this article here: Benchmarking Avoid comparing yourself to the industry average..
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