What is Employee Underutilization

Employee Underutilization is a situation when an organization cannot obtain maximum of benefit from its employees, cannot wisely wield its workforce, or cannot load them with work effectively. There is no single conception of what the employee underutilization is, but usually it refers to:

• Managers aren’t qualified enough or not interested to develop a company’s workforce: they feel indifferent about talent management, recognition of employee efforts, and profound strategies to motivate the staff. In a result their companies fail to use the whole potential of their employees, so they leave its possible benefits prodigally underutilized.
• Managers plan and organize workloads poorly, so their employees suffer from extremely busy workdays when they are just stressed out and overloaded with all possible tasks, while on some other days they may have to stay completely idle, because there is no work to do at all.
• An organization is overstaffed or its business management activities decline (probably because of economic crisis), so there is no enough work for everyone: the potential of employees stays underutilized.
• Workloads are distributed not equally in the staff, so some of employees are always busy with some tasks, while other employees always have excessive free time they waste on personal web-surfing, etc.