Clearwater Electronics is planning to open an office in Shanghai, China, and the HR department has been asked to benchmark the compensation practices of other multinational organizations in the region. Why is benchmarking a first good step to developing a compensation and benefits plan to attract and retain new employees who will contribute to the organization?

Benchmarking will ensure that salary and benefit decisions are made on solid data. This information will aid and influence the cost management of the organization.

Benchmarking will allow the company to identify trend data and use it to improve their products.

Benchmarking will allow the company to offer wages comparable to other organizations in the region.

Benchmarking will enable the company to identify strengths and weaknesses of competitors as well as gain insights into its own strengths and weaknesses.