In the analysis stage of benefit plan benchmarking, the first step is to determine gaps between competitive practices (B). At the SPHR level, benchmarking is a structured process used to evaluate how an organization’s benefits compare to relevant labor market competitors.

Once benchmark data is collected, analysis begins by identifying where the organization’s offerings exceed, match, or fall below market norms. These gaps provide the factual basis for decision-making and help HR prioritize which benefits may require adjustment to remain competitive, compliant, and cost-effective.

Developing action plans (A), identifying improvements and timelines (D), and communicating findings (C) all occur after gaps are clearly understood. Taking action without first identifying gaps risks misaligned investments or unintended consequences.

SPHR exam content highlights that effective benchmarking relies on objective comparison and disciplined analysis, not immediate action. HR’s credibility depends on demonstrating a clear link between data, gaps, and recommended changes.

References :

HRCI SPHR Exam Content Outline — Functional Area: Total Rewards (benefits benchmarking; competitive analysis).

HRCI SPHR Study Guide — Benchmarking methodology for benefit plans.

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