Advantage 1: Gain an understanding of where your firm stands
The first advantage of benchmarking is that it allows you to get a feeling of where your firm stands relative to others. This may be a wake up call – potentially illustrating that the firm lags behind others.
Advantage 2: Identify areas where you can improve
Benchmarking may also help illustrate specific areas where the firm can improve upon. There could be specific areas for example that stand out as specifically lower than other companies. Becoming aware of these areas can help illustrate where as a firm you should concentrate on – the specific areas with the greatest opportunities for improvement.
Advantage 3: Motivate employees that improvements are possible
A final advantage of benchmarking is that it can help motivate employees that improvements are possible. There can be resistance to possibilities – people not believing that improvements are possible because they have not seen that level of performance before. Having some support that improvements are possible can help gain the commitment from employees to seeking to make improvements.