In an organization, employee performance evaluation is a significant factor as it affects the overall company’s performance. It is very difficult to gaze at an employee’s performance without any criterion. Benchmarks are the work standards founded for employees. The employee’s capability to meet those benchmarks should be the basis of the performance evaluation. It is an organizational tool to drive continuous productivity improvements. This can render increased efficiency and create competitive advantages.
While developing a benchmarking procedure, team leaders and managers review strategic business goals, gather data related to best practices, and use data analysis to develop performance metrics and plan improvements. This process serves as the basis for effective employee goal-setting.