Utility Analysis

What is utility analysis in human resource management?

Utilization analysis, also called workforce utilization review, is an analysis of the demographics of the workforce. Its purpose is to assess whether an organization employs a specific group (such as women, minorities, etc.) at a rate that is aligned with workforce availability (or the estimated number of people available for work in specified groups).

Why is utility analysis important?

Utilization analysis is essential because it ensures equal access and equal opportunities for employees. Needless to mention that it encourages organizations to stay on top of their diversity and inclusion efforts based on the rules and regulations administered by the Equal Employment Opportunity Commission  (EEOC)  .

The EEOC is responsible for enforcing federal anti-discrimination laws. They make sure the following types of discrimination are addressed in the workplace:

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

Therefore, conducting a usability analysis can help organizations:

• Assess which demographic groups are being underserved
• Identify what changes the company needs (e.g. hiring practices, networking, mentoring, etc.)
• Make data-driven decisions

Overall, if usability analysis is done correctly, it can help employers establish a safer, happier, and more diverse workplace.

How do you do a utility analysis?

There are three major steps required to conduct a utility analysis   :

1. Place employees into job groups:  This involves gathering job titles into job groups (such as management professionals, support professionals, specialist professionals, etc.). Employers should also calculate the percentage of women and minority employees in each job group in their organization.
2. Determine workforce availability of women and minorities:  This requires finding the percentage of women and minorities in the appropriate hiring area who have the skills to fulfill the job groups specified in step one. Employers should use the most current data available to collect relevant workforce numbers. These resources   may include census data and/or data from colleges and training institutions.
3. Look at occupancy vs. availability:  Using the two percentages from the steps above, you can compare the values ​​to see if the number of minorities or women in a job group in your organization is below the number reasonably expected given their availability in your hiring area. If so, this would be called underutilization. Your team can use this information to create the necessary goals to help drive better diversity and inclusion initiatives.

How do you track employee utilization in your company?

Based on the results of your usability analysis, you can establish a goal and relevant KPIs for each work group.

For example, if your analysis shows that you are underutilizing female managers, you may want to refocus your recruiting efforts in the following ways:

• Partnering with Women in Leadership Organizations
• Reevaluating your job description and interview questions
• Tracking the entire recruitment process (e.g. ratio of male and female applicants, selected candidates, etc.)

Tracking utilization will help your team keep track of diversity, equity, and inclusion initiatives that ensure equal access and equal opportunities for all workers.