Which tool is commonly used for performance benchmarking?

Key Performance Indicators (KPIs) are widely recognized as essential tools for performance benchmarking. They are specific, measurable metrics used to evaluate the effectiveness and success of an organization, department, or individual in achieving key business objectives. By defining benchmarks through KPIs, organizations can track performance over time, identify areas for improvement, and make informed strategic decisions.

Using KPIs enables businesses to compare their performance against industry standards or historical data, providing a clear framework to assess progress. This structured approach ensures that the evaluation of performance is objective and quantifiable, rather than relying solely on subjective evaluations or anecdotal evidence.

In contrast, the other options serve different purposes. Employee feedback surveys are useful for gathering subjective opinions and feelings but do not provide concrete metrics for performance benchmarking. Job descriptions outline roles and responsibilities but do not measure performance. Team-building activities focus on improving collaboration and morale but are not directly tied to assessing performance in measurable terms. Therefore, KPIs stand out as the most effective tool for performance benchmarking due to their clear, quantifiable nature.