Utilization Analysis | Meaning and Definition

What is Utilization Analysis?

A utilization analysis in the field of Human Resource Management refers to an analysis of the demographics of a workplace. The purpose of this concept is to peruse whether an enterprise offers employment opportunities to a specific group such as minorities, women, etc., at a rate that is consistent with the workforce accessibility or the approximated number of individuals in designated groups who are available for a job.

Significance of Utilization Analysis

Utilization analysis is crucial because it ascertains equal opportunities and equal access for workers. It motivates enterprises to maintain high diversity in the workplace and practice much inclusivity while abiding by the regulations stated by the Equal Opportunity Commission (EEOC). This administrative body enforces federal anti-discrimination rules and laws. The regulations make sure to address the discrimination based on the following:

  •   The Age Discrimination Act prohibits discrimination based on age.
  •   Americans with Disabilities Act prohibits discrimination based on disability.
  •   Civil Rights Act of 1965 prohibits discrimination based on ethnicity.
  •   Civil Rights Act of 1965 prohibits discrimination based on sexual orientation.
  •   Civil Rights Act of 1965 based on gender.


Thus, arranging a utilization assists organizations in:

  •   Making decisions that are data-driven.
  •   Navigate the types of changes that an enterprise needs to head, such as mentoring, networking, hiring practices, etc.
  •   Evaluate the demographic that are underutilized.

In general, when done right, utilization analysis can facilitate employers in establishing a happier, rich, diverse, and safer workplace. In order to conduct a utilization analysis, one has to consider three steps that are, placing employees into different job groups, determining workforce availability of minorities and women, and finally, scrutinizing the incumbency versus availability. The information procured in these steps would be used to establish goals that help leverage inclusion and diversity initiatives in the workplace.

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