Utilization analyses are a strategy used in affirmative action programs to compare the demographics of present workers with those of the available labor pool.
Utilization analysis aims to ensure equal access and opportunity for all workers.
Why is Utilization Analysis Important?
Utilization analysis is crucial because it guarantees employees equal access and access to opportunities.
It is worth noting that the norms and regulations motivate businesses to maintain their diversity and inclusion initiatives.
The Equal Employment Opportunity Commission (EEOC) ensures that workplace discrimination is addressed and mitigated. Discrimination may occur based on,
Workers from different disciplines are aligned with workforce availability and underutilization analysis.
When done correctly, utilization analysis can generally assist companies in creating a more content, rich, diverse, and secure workplace. It helps organizations to
specify the changes that the business needs to lead
determine which demographic groupings are underrepresented
make data-driven decisions
place employees into various job categories
figure out the availability of women and people of color in the workforce
Goals that help leverage inclusion and diversity activities in the workplace would be established using the information gathered during these processes.
How is Utilization Analysis Conducted?
According to the Executive Order Utilization Analysis, it can be done in 3 steps. They are:
1. Placement of Incumbents in Job Groups
After combining the job titles for the work group analysis, the employer is required to individually disclose the proportion of women and minorities employed in each job group.
2. Determining Availability
The employer must ascertain the availability of women and minorities for each job group after combining individual job titles into job groups.
"Availability" is an assessment of the proportion of women and people of color who, relative to all other people in the reasonable recruitment region, possess the skills needed to execute the jobs within the job groupings.
3. Comparing Incumbency to Availability
To identify job groups where the percentage of employed minorities and women is lower than expected, the employer must compare the utilization of minorities and women in each job group with their estimated availability.
How Do You Track Employee Utilization at Your Company?
There’s a simple formula to know the employee utilization rate:
Utilization Rate = Billable Hours / Eligible Working Hours
Tracking employee utilization and productivity
Analyzing the data
Employee utilization rate could seem like a straightforward metric. Nevertheless, monitoring and measuring this can increase employee productivity and engagement at work.
Knowing your employee utilization rate will also help your business,
set lucrative service charges,
fairly pay your staff,
make better hiring decisions,
ascertain whether employees are overworked or underutilized.
Put new HR policies into place.
What can HR learn from Employee Utilization Rate?
Although employee utilization is frequently employed as a statistic to assess and enhance earnings, its primary focus is on employees.
Here are some things HR can learn from the staff utilization rate and how they can help it be optimized:
Make wiser hiring choices.
Improve the organization's general practices
Reduce employee burnout
Promote a fair pay scale
To better support the workforce and culture of the organization, HR departments can benefit from understanding the employee utilization rate and taking advantage of the opportunities it presents.