tl;dr
Luppa’s benchmark system helps companies see how they stack up against others in their industry and market. It blends data from clients and a wide range of individual users (via Personal Luppa) to ensure fair, accurate, and relevant comparisons. To keep results meaningful, each client’s input is equally weighted, and only data from the past two years is used. Whether you’re looking at market, industry, or regional benchmarks, Luppa’s approach is designed to give you a realistic, well-rounded view of your performance – without the data noise.
Introduction
From day one, Luppa has believed in the importance of benchmarking. With this in mind, our goal has always been to provide a comprehensive and highly relevant selection of benchmarks, ensuring that our clients have access to the best possible data and context for making informed decisions.
In this blog, we will explore how Luppa's benchmark system works, the science behind it and provide answers to frequently asked questions regarding our benchmark offerings, including how relevant they truly are.
What are Luppa's benchmarks?
Benchmarking is the process of evaluating your company’s practices and performance by comparing them with those of competitors, industry leaders and other organizations of similar size, industry and market. This approach allows organizations to identify performance gaps, improve business processes, boost competitiveness and highlight best practices. Benchmarking not only highlights areas for improvement but also identifies strengths, helping companies develop a clear path to success.
Luppa’s advanced benchmarking system takes this a step further, enabling you to compare every aspect of your analysis with your peers for deeper insights.
The benefits of benchmarking include: gaining valuable insights, understanding your market and competition, contextualizing your performance and knowing your position in order to set realistic improvement goals.
Which benchmarks are available?
Luppa offers two types of benchmarks:
- Market benchmark: Through these benchmarks, businesses can better understand their market share, consumer base and the competitive environment.
- Industry benchmark: These benchmarks allow companies to evaluate their performance in relation to industry standards and discover areas for growth and improvement.
A full list of available benchmarks is available here.
Which benchmark to choose?
Industry benchmark:
To choose the most relevant industry benchmark, select the benchmarks that best align with your company’s operations.
If your business spans multiple industries, we recommend selecting 2-3 industries that are the most similar.
For companies in even more sectors, the system will calculate an average of the selected benchmarks for a holistic view.
Market benchmark:
For organizations operating in a single country, simply choose your country from the list.
If your company operates in multiple countries, select the relevant markets and the system will calculate an average benchmark.
For companies in more than five markets, we suggest using regional benchmarks such as Europe, EMEA, or the Middle East to get more contextual and precise data.
What data is used to calculate benchmarks?
Luppa’s benchmarks are based on two key types of data:
Luppa Client Data
This includes all data points collected from the usage of Luppa clients. Luppa collaborates with a wide variety of clients from different sectors, which allows for a more comprehensive analysis of performance and trends across different industries and markets.
Personal Luppa Data
Personal Luppa is an extension for personal usage that allows individual users to fill out a Deep Dive survey, which provides personal insights on satisfaction and engagement compared to industry and market benchmarks. In exchange for this participation, Luppa collects valuable data on variables such as industry, market, company size, gender, age etc.
Why is Personal Luppa data so important?
Personal Luppa data is significant because it helps improve the accuracy of our benchmarks. To understand its importance, let’s take a closer look at why Personal Luppa data plays such a crucial role:
1. Luppa clients tend to be above-average companies, which means they often present a bubble of above-average results. This creates a skewed view that may not fully reflect the broader context - in fact, employee satisfaction among Luppa clients is, on average, 30% higher than the benchmark.
2. Luppa clients are typically larger and more advanced organizations, which do not represent the full range of companies across various sizes, industries and markets. As a result, the data from these clients may not be fully representative.
3. Luppa aims to create benchmarks for dozens of industries and markets, ensuring the highest possible precision and context. However, to achieve true relevance, Luppa would need a sufficient number of clients in each sector. For example, having 20 financial clients in Slovakia would be a significant challenge.
This is where Personal Luppa data becomes invaluable. It offers insights from a wide range of population segments - including employees from both small and large companies, satisfied and dissatisfied individuals, people from different socio-economic statuses, educational backgrounds and various age groups.
By including such a diverse pool of data, Personal Luppa ensures that our benchmarks reflect a much broader spectrum of the population and industries. This allows us to provide more precise, nuanced and comprehensive insights, rather than relying solely on data from larger, more advanced companies.
How does Personal Luppa collect and structure data?
To maintain the diversity and quality of data, Luppa conducts annual media campaigns designed to reach all demographic groups. These campaigns aim to maximize both the quantity and diversity of data, ensuring that the benchmarks are as representative as possible.
To prevent bot activity and ensure the accuracy of our data, we have implemented a series of security measures. The first is the integration of a reCAPTCHA on all of our forms, which effectively blocks bots from spamming and flooding our system. The second measure involves a set of control questions designed to verify that participants are focused and engaging with the questions. This approach helps us obtain a higher quality dataset, ensuring the integrity of our benchmarks.
How does Luppa combine client and personal data?
Luppa serves a wide range of clients, from small businesses to large enterprises. To create the most relevant benchmarks, we apply a weighting system that treats all clients equally, regardless of company size, assigning each client a uniform weight of 50 (a conservative estimate based on Luppa’s average client size exceeding 1000 employees).
For example, if a company with 20,000 employees in Poland provides data, it is treated as just 50 weighted data points in the calculation, preventing it from disproportionately influencing the benchmark. Without weighting, a single large company—say with 50,000 employees—could dominate the benchmark and skew insights to reflect its unique internal culture rather than the broader market.
By capping each company’s influence at a fixed value, we ensure fair representation and more accurate, comparable insights across our entire client base.
Here’s an example of how the benchmark is calculated:
For a market with 10 clients (A, B, C, etc.) and 1000 Personal Luppa data points, the formula for calculating the benchmark would be:
Benchmark result = (50A + 50B + 50C + ... + 1000 entry results) / (10x50 + 1000)
This method ensures that the benchmarks are not skewed by any single source of data, providing a more statistically balanced and accurate result.
How much data does Luppa have?
At the time of writing, Luppa’s benchmark system has processed 50.000 data points and this number continues to grow at a rate of approximately 10% per month.
What age of data is used for benchmark calculation?
To ensure the highest relevance, the last two years of data are utilized for benchmark calculations.
Why is there an age limitation on the data?
Data tends to fluctuate over time and the most recent data reflects the current market situation most accurately.
Why a two-year period instead of a shorter timeframe?
If the timeframe were limited to one year, there could be instances where only a month's worth of data is available, which would not provide sufficient relevant information. The two-year timeframe has proven to be the most effective for capturing a comprehensive and reliable market overview.
What is the minimum relevancy for any given benchmark?
With hundreds of different benchmarks in Luppa, every benchmark has its own data relevancy (number of data points eligible for given benchmark) ranging from few dozen to thousands.
To retain minimum relevancy, these are defined thresholds:
- Limited: 101+ data points
- Sufficient: 201+ data points
- Robust: 501+ data points
- Comprehensive: 1001+data points
Most of the benchmarks have much more data points, but if any has below given number, it won’t be offered.
Reminder: take into account that if there is a company of 10,000 employees eligible for the benchmark, it will be counted only as 50 data points as described above.
How does Luppa calculate the market benchmark?
Luppa’s algorithm processes all available data points for each market and computes averages to establish the benchmark index.
How does Luppa calculate industry benchmarks?
Luppa’s algorithms extract all relevant data points for each industry and calculate the average values to create the benchmark index. The benchmark index for each industry is determined globally, but it is then adjusted for each specific market using the market benchmark, following this formula:
Industry for Market X = (industry benchmark + market benchmark)/2
How does Luppa calculate regional benchmarks?
For broader regions such as South America or Eastern Europe, Luppa’s algorithms follow a two-step process.
In Step 1, benchmarks are calculated for each individual market within the region.
In Step 2, the average of all these market benchmarks is calculated to determine the regional benchmark.
Conclusion
In conclusion, Luppa’s benchmark system combines data from a diverse range of clients and personal insights to provide accurate, relevant and comprehensive benchmarks.
By using both client and personal data, Luppa ensures a balanced representation across industries, sectors and market segments. With a robust data collection process and advanced algorithms, Luppa offers valuable insights that help businesses make informed decisions, track performance and identify areas for growth.
Now you can get an personalized estimate on how much you could save by investing in digital tools for employee engagement and satisfaction. Curious? Try out our ROI calculator.
Want to create a feedback culture where employees feel heard and engaged? Continue reading our blogs to learn more—or contact us to see how Luppa can help you drive participation, track sentiment, and turn insights into action.