Why Benchmarking Against Yourself Is the Smartest Productivity Strategy
“How does our productivity compare to our industry?”
Whenever I work with CEOs in workshops or coaching programmes, this question inevitably comes up. I suspect this need for external benchmarking stems from our deep-rooted human need for social comparison.
In 1954, Leon Festinger’s Social Comparison Theory suggested that individuals determine their own social and personal worth by comparing themselves to others. This can be motivating when we find we’re ahead, and it can also be discouraging if we feel we’re falling short.
However, when it comes to productivity benchmarking, particularly in today’s economic climate, external comparisons can be unhelpful.
The UK’s long-term productivity growth rate since 2008 has been just 0.4% - a stark contrast to the 2.3% growth seen before 2008.
This means that even if your business achieves 1% growth, you may be outperforming your industry - yet still operating well below what is reasonably possible
The Race Track vs. The Treadmill Approach to Benchmarking
Imagine you're training for a marathon. You have two ways to measure progress:
🏁 The Race Track Approach
You compare your speed against other runners on a race track. Some are professional athletes, others are casual joggers. Their performance depends on factors beyond your control - genetics, training conditions, even the weather. You might be faster than some and slower than many, and does that really help you improve?
🛠️ The Treadmill Approach
Instead of comparing to others, you focus on your own progress. You track your speed, endurance, and recovery. You measure how much longer you can run without stopping, how your pace improves, and how your fitness level changes over time. Every improvement is a direct result of your effort.
Which method leads to lasting improvement?
Trying to outrun a competitor might push you in the moment, but it’s not a reliable, long-term growth strategy. On the other hand, tracking your own data consistently allows you to make meaningful adjustments and see real progress.
Benchmark Against Yourself First
That’s why my advice is always:
✅ Benchmark against yourself first and foremost.
✅ Track your Productivity Wage Quotient quarterly to see if you’re moving in the right direction.
✅ Focus on continuous improvement, not external comparisons.
Remember, small, consistent gains compound into significant improvements. The key question to ask is:
“Are we more productive than we were last quarter?”
📢 Introducing the Productivity Benchmark Report
That said, I do see value in national productivity benchmarking at an industry level - something that I haven't yet found being tracked.
To fill this gap, I’m launching a quarterly Productivity Benchmark Report, based on real, anonymised data from businesses using my Productivity Calculator.
Participants will be able to compare their progress against:
✅ Their own past performance
✅ Industry trends from real-world businesses
By measuring productivity quarterly, organisations will not only prioritise productivity as a key focus, they’ll also gain valuable insights into their industry’s performance.
📈 Get Involved – And Start Measuring Real Gains
Do you want to track your productivity over time and see how you compare?
It’s free for those using the Productivity Calculator. Get started in three simple steps:
1️⃣ Complete the Productivity Calculator here: https://bit.ly/productivity-calc
2️⃣ Tick the box to participate in the quarterly benchmark survey
3️⃣ Submit your updated data each quarter when prompted
You’ll receive a quarterly report with anonymised industry data for as long as you contribute.
Let’s move beyond guesswork and start measuring what truly matters.