Workforce Utilization Rate
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Category:  
Operational

Measures the proportion of time employees spend on productive tasks compared to total work time.

What it Measures ?

How well employee time is used.

Relevant StakeHolders 

HR Manager, Shift Supervisor

Why it Matters ?

Measures workforce time utilization.

In-depth Use Case / Real-world Example

Workforce Utilization Rate calculates how efficiently employees are used in production. For example, if workers are engaged in productive tasks for 35 out of 40 hours, the utilization rate is 87.5%. Maximizing workforce utilization helps improve productivity and reduce idle time, thus reducing labor costs. Companies can improve this rate through better scheduling, task optimization, and reducing downtime.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Worker Hours Worked / Total Available Hours) * 100

Should Aim For
1
2
3
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