Employee Utilization is a method of utilizing available workforce of a company for the purpose of maximizing the employee efficiency. It is the company’s vision regarding the best possible use of available human resources for accomplishing strategic goals and addressing tactical decisions.
The idea behind employee utilization is to prevent wasteful and inappropriate use of available HR through reaching optimization in the working environment. Successful realization of this idea entails a continuous increase in a company’s revenues in the long run.
Employee utilization is an attempt to make current use of workforce more efficient through the following activities:
- Training and education (improving skills and knowledge of workers)
- Time management (better planning and allocation of time among employee tasks)
- Delegation (more optimized assignment of tasks)
- Increased pay rates (workers earn more for the same period of time)
- Recognition and rewarding (employees recognize their importance to the company and are rewarded for work success)
- Motivation and leadership (employees are well motivated and led).