Utilization
Definition of
Utilization
Utilization is the percentage of the number of hours that a full-time employee (FTE) or a team is assigned to a specific task, project, campaign, or client compared to the number of hours available. A 100% utilization implies a full-time dedication, while a utilization lower than 80% is considered part-time dedication, depending on the organization standards. With the exception of production peaks, a utilization higher than 100% is an indicator of inefficient planning and poor process optimization. This may result in employee dissatisfaction, team inefficiency, and attrition increase.
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