Utilization Analysis

What Does HRM Utilization Analysis Mean?

Utilization analysis, often known as workforce utilization analysis, is the investigation of the demographics of a workforce. The goal is to determine whether an organization employs a particular group (such as women, minorities, etc.) at a rate that is consistent with the availability of the workforce or not (the estimated number of people in designated groups who are available for work).

The Importance of Utilization Analysis

Utilization analysis is essential because it ensures equal access and access to opportunities for all employees. Not to mention, it motivates businesses to maintain their diversity and inclusion initiatives in accordance with the laws and guidelines overseen by the Equal Employment Opportunity Commission (EEOC).

• Sexual preference (Civil Rights Act of 1965)
• Gender (Civil Rights Act of 1965) 
• Disability (Americans with Disabilities Act) 
• Ethnicity (Civil Rights Act of 1965) 
• Age (The Age Discrimination Act of 1975) 

Benefits of Utilization Analysis

• Determine which racial or ethnic groups are underrepresented.
• Determine the changes that the company needs to lead (e.g., hiring practices, networking, mentoring, etc.)
• Make decisions based on data.

Conducting Utilization Analysis

Three crucial actions must be taken to conduct a utilization analysis:

• Organize personnel into job groups by combining job titles into job groupings (e.g., management professionals, support professionals, specialized professionals, etc.). Employers must also determine the proportion of women and people of color working in each set of jobs at their company.
• Find out the proportion of women and minorities in a viable recruitment region who have the necessary abilities to fill the job groups mentioned in step one in order to determine the availability of these groups in the workforce. Employers should use the most recent data to compile the necessary workforce statistics. Data from colleges and training facilities, as well as data from the census, are examples of these resources.
• Examine availability vs. incumbency: Using the two percentages from the procedures above, you may compare values to determine whether the proportion of women or minorities in a certain job category at your company is less than what should be predicted based on their availability in your recruitment area. Underutilization would be the term used in this situation. Using this knowledge, your team can create the objectives required to advance greater diversity and inclusion programs.

Conclusion

Utilization analysis may generally help businesses create a happier, richer, more diverse, and safer workplace when done properly. There are three procedures that must be taken in order to conduct a utilization analysis: classifying employees into distinct job groups; figuring out the availability of women and minorities in the workforce; and finally, comparing incumbency to availability. The data gathered through these processes would be utilized to set objectives that would support workplace inclusion and diversity initiatives.