Organizational Growth: HR Leveraging Intention Driven Benchmarking and Location Strategy

We highlighted the importance of intentions and various aspects of intention-driven benchmarking in our previous blog and how they can act as a catalyst for growth. Going forward, we discuss the benefits intention-driven benchmarking has to offer.

Benefits of an Intention Driven Benchmarking Approach

• Firstly, it ensures that each of our strategies is aligned with industry best practices and reflect the latest trends and developments by benchmarking against top-performing organizations. Each are professionals who can identify areas for improvement and implement strategies that drive success. The art of intention-driven benchmarking also allows HR departments to adapt to evolving market conditions and organizational needs.

• By regularly reviewing and analysing benchmarking data, companies can stay ahead of industry shifts and proactively adjust their strategies. This agility is crucial in a fast-paced business environment where organizations must constantly adapt to remain competitive.

• Another key benefit of intention-driven benchmarking is improved talent attraction and retention. By offering competitive compensation packages and meeting or exceeding overall industry standards, organizations can position themselves as desirable employers. This not only attracts top talent but also builds employee satisfaction and reduces turnover rates.

So, in many ways, intention-driven benchmarking also helps create an enhanced employer brand for the company.

Location Strategy

Does location play a significant role in an intention-driven benchmarking for HR? Well yes! Post-pandemic, it does. With many organizations exploring the possibility of permanent remote work policies, CFOs are contemplating the implications of real estate and associated costs. According to research by Gartner, 72% of CFOs anticipate that the corporate real estate footprint will decrease over the next few years

How it matters to HR

Location decisions are generally driven by financial factors like real estate, costs, taxes, or government incentives, with the talent aspect becoming secondary. When real estate teams and CFOs consider talent needs, they frequently lack the detailed insights that HR leaders can provide. So, HR leaders need to play their role by offering detailed talent intelligence that the senior team can integrate when incorporating it’s location strategy.

HR leaders must ensure that location strategy considerations go beyond real estate, corporate taxes, and government incentives and partner with the business to build a location strategy that considers current and future talent needs. Different locations can have distinct market dynamics, compensation norms, and talent pools. HR departments should consider these variations and incorporate them into their benchmarking and location strategies to optimize growth.

When analysing benchmarking data, it's essential to consider location-specific factors. For example, the cost of living can vary significantly from one location to another. HR professionals should consider these differences when determining compensation packages to ensure that they are competitive and attractive for employees in each location.

Additionally, the strategic choices of an organization can also be influenced by location. Some locations may offer unique advantages in terms of access to talent, industry clusters, or infrastructure. HR departments need to evaluate these factors and incorporate them into their location strategy.

Now that's all about on-site, but what about off-site? With hybrid work and remote work becoming increasingly common, it is important to consider this aspect as well when considering the location strategy. Let’s understand this aspect of location strategy in our next blog.