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HR Benchmarking: Engagement, Loyalty and eNPS

Happy Job
27 August, 2021

One of the strategies for increasing employee engagement and loyalty is related to the use of benchmarks. By comparing your company's performance to benchmarks, you can discover successful tactics for attracting and retaining valuable talent.

Let's talk about what benchmarking is and how to use it to develop employee engagement and loyalty.

What is benchmarking in HR

Benchmarking is a comparison of your activities with other companies in order to improve your own performance.

In research on employee engagement and loyalty, benchmarking is a tool that shows the level of employee engagement and loyalty in your company and in competing companies. The benchmark for comparison is the benchmarks of other companies - the data against which you will compare your company's performance.

Happy Job Benchmarking is based on 10 engagement metrics, 5 loyalty metrics and eNPS metrics. After the analysis, you will find out:

  1. Are the metrics for employee engagement and loyalty within the industry and the market as a whole?
  2. Where the average performance of the company is compared to competitors.
  3. What strategies are currently being used by your competitors to improve employee engagement and loyalty.
  4. How real is the risk of an increase in the number of employee layoffs.
  5. Whether there's a risk of loss of employee productivity.


Бенчмаркинг в HR позволяет сориентироваться в выборе стратегии развития вовлечённости и лояльности персонала


Through benchmarking, you can learn about the practices of other organisations to attract and retain the best employees. HR benchmarking is a benchmark that helps you choose the right path in developing employee engagement and loyalty..

Studying benchmarks of other companies allows you to understand at what stage of development their and your corporate cultures are, and to plan to improve it.

Benchmarking types

There are several types of benchmarking:

  1. internal by the company,
  2. external intersectoral in the country,
  3. external intra-industry activities in the country,
  4. external to the world.

Let's consider the difference between the types of benchmarking, and try to find out which of them will be most useful in your practice.


Type 1: Internal benchmarking

Internal benchmarking - comparing the performance of different departments in the same company. In-house benchmarking helps you determine which HR practices are most effective in your organisation and scale them up. This will increase the indicators of employee engagement and loyalty throughout the company.


Features of internal benchmarking:


  1. Leaders are motivated to make changes when they see the performance of other departments: they turn on excitement and even a competitive spirit.
  2. The accuracy of the internal benchmarking result does not depend on the number of clients of the provider, since only internal data is analysed.


  1. The interference of the human factor is not excluded. Under pressure from senior management, a leader may ask employees to respond in a positive manner to improve their performance.


After analysing the internal indicators, you need to develop a plan to improve them: engage the leaders of successful teams and facilitate the transfer of best practices within the company.




Type 2: External Cross-Industry Benchmarking within a country

External cross-industry benchmarking is benchmarking against the performance of other companies. This type of benchmarking on the HappyJob platform includes data from organisations within a country.


Features of external cross-industry benchmarking:


  1. External benchmarks will help determine priorities for the development of employee engagement and loyalty. From the comparison results, you can see which staff opportunities should be created first.
  2. External benchmarks will be useful for senior management and HR professionals. Based on these indicators, they will be able to identify the current strengths and capabilities of their company and plan for development.
  3. An external assessment is useful as it gives an idea of ​​what is happening in the labor market. This is a solid starting point for companies just starting to track engagement and loyalty. Once you achieve acceptable performance, you need to continue to monitor their dynamics in your company.


  1. Average is not always applicable in your company. In the process of improving engagement and loyalty, you need to focus on your own results. No two companies are alike, because the corporate culture is influenced by different factors and the experience of each company is unique.
  2. The state of engagement and loyalty depends a lot on the industry.


External assessment is a starting point to understanding an comparing your company to other organisations in the market.


Type 3: External Industry Benchmarking internally

External industry benchmarking is benchmarking against other companies in the same industry. On the Happy Job platform, the benchmark database includes companies from 18 industries.


Features of external industry benchmarking:


  1. Analysing employee engagement and loyalty benchmarks within the industry helps develop the company's HR brand. Understanding your strengths and the advantages of competitors, it is easier to create a strategy for attracting EMPLOYEES, to emphasize the merits of the organisation. Also, industry benchmarking will provide insight into the trends in attracting and retaining employees in the industry.


  1. Such a comparison is only meaningful when it is done using a large sample. The lower the base of the provider, the higher the likelihood of inaccurate comparison results.


The comparison can only be trusted if the provider has a large sample. Happy Job users receive a large sample of data for comparison: to date, 3,500,000 respondents have participated in our surveys. They are employees of more than 400 companies from 18 industries.

In Happy Job , industry benchmarking compares the results of at least seven companies. Average, worst and best values ​​are taken for comparison. This sample provides a comprehensive understanding of the trends and technologies used in competing companies.

It is important to note that we do not disclose company names and data for comparison. Only anonymous values ​​are included in the reports.

The most common approach in benchmarking is to combine external and internal metrics. This combination gives a comprehensive result that can be used to further develop the engagement and loyalty of staff and the HR brand of the company.




Type 4: External Benchmarking around the world

External benchmarking around the world is a benchmarking against the performance of other companies around the world.

This type of benchmarking has its own nuances in its application. It should be borne in mind that companies from different countries, even from the same industry, will be influenced by a huge number of specific factors - local legislation, the mentality of the country's inhabitants, including cultural and religious characteristics, etc. Also, the providers of data on foreign companies, as a rule, are foreign providers of engagement and loyalty research. These organizations have a particular approach to building a benchmark base.


Features of external benchmarking around the world:


  1. Global data is important because it can be used to learn about the innovations that are only just coming to us, and to be the first to start using new techniques for employee engagement and retention.


  1. Benchmarks for foreign companies are most often provided by foreign research providers. For comparison, they offer data for only 5% of all employees of the company. This is a small sample and will not provide an accurate understanding of generally accepted processes.
  2. Foreign providers often use data from loyal employees. On the one hand, this raises the bar, but on the other, it does not reflect the real picture. From a statistical point of view, such data is useless.
  3. Definitions can be misleading. The same term in different countries often has different meanings. Even a slight difference in interpretation can be confusing and lead to inaccuracies when comparing results.
  4. All countries are trying to protect personal data. Because of this, the accuracy of international benchmarks will decrease every year: providers will work in local markets, since it will become too expensive to maintain servers in each country.

Every organisation is unique

No two organisations are alike, just like no two people are exactly alike. The experience of an organisation, its culture and values are formed under the influence of various factors: economy, personalities of leaders, employees, difficulties facing the organisation. Naturally, under the influence of these circumstances, the indicators of various aspects of engagement and loyalty will differ from other companies. You cannot rely only on the best or worst ratings in the industry. These are just guidelines.

Benchmarks are important, but the ultimate goal is not to achieve a benchmark, but to improve your own performance. Benchmarking is an ongoing process with the goal of adopting the positive experience of other companies and developing your own performance. Study labour market trends, the level of employee engagement and loyalty in your and competing companies together with reliable providers of this service. Only work with reliable data to achieve growth and excellent engagement and loyalty rates.

About the author

Happy Job

International team of platform experts

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Participants were impressed by the format and comprehensibility of the questions. At the end of the survey, the generated reports were ready the next day. And showed an overview of the company as well as the individual departments. Thank you Happy job for your professional approach and prompt feedback.

Alexandra Paramonova
Hiring and Adaptation Manager EMPLOYEE Department, Faberlik OJSC

Happy Job provides full details for each block of the survey - this helps to see the most pressing issues, sort them by project and priority. The schedule of notifications is fine-tuned - messages are sent at a clearly specified time, the second push goes exclusively to those who did not pass the survey. I want to specially compliment the high level of visual analytics: it's intuitive and easy to use. The results are easy to generate a report for the workgroup and show them clearly.

Viktoriya Kolesnik
Project Implementation Manager

From January 20 to January 31, 2020, we conducted an engagement survey with Happy Job.

The platform is excellent: fast, interesting, visual, a large set of tools and services, including tools for analyzing the results.

Inna Krivonosova
Head of the EMPLOYEE management sector, YOKOHAMA

Prompt and well-coordinated work by the HJ team. The study was easy, interesting presentation of the questionnaire, for the first time employees did not complain about a waste of time, but passed the survey with interest. A very clear and convenient report.

Astafurova Marina
HR Director
I would like to thank Happy Job for a clear and convenient assessment platform, high-quality analytics available in real time, for customer focus and flexibility, for prompt response to our requests.

You are great! We plan to continue to work with you.

Head of the EMPLOYEE assessment, training and development department
Agile approach to work makes its own adjustments in all areas, including the assessment of employee engagement. Realizing that our annual survey no longer covers the needs of the company and does not inspire colleagues, we began to study the provider market. We looked at both Russian and European developers, we stopped our choice on a happy-job and were not mistaken. Elements of gamification, questions of different directions, the ability to give feedback, praise this is exactly what motivates colleagues to take surveys on a weekly basis.
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