How To Track Resource Utilization?

#1. What is Resource Utilization?

#2.Significance of resource utilization

2.1 Better Project Resource Planning

2.2 Improves ROI

2.3 Capacity Planning for Pipeline Projects

#3.Different types of resource utilization

  • Overall resource utilization
  • Overall resource utilization is the method of measuring the total utilization of a resource against its availability or capacity. It is the cumulative time that an employee spent on billable, non-billable, and strategic activities. It can be calculated by comparing the total resource capacity against the total work allocated to an employee.
  • Which means;
    Overall Resource Utilization = Actual/Allocated Total Time ÷ Resource Capacity
  • Billable resource utilization
  • Billable resource utilization is the way to measure how much a resource is utilized for billable work against the resource capacity or availability. The time spent by a resource on billable work is termed billable time for which the client has committed to pay.
  • Which implies;
  • Billable Resource Utilization = Actual/Allocated Billable Time ÷ Resource Capacity
  • Non-billable resource utilization
  • Non- billable resource utilization is a method of measuring time spent by a resource on an activity that cannot be billed to a client. This time is generally related to BAU, internal meetings, admin, training & workshop, bidding work, etc.
  • Which means;
    Non-Billable Resource Utilization = Actual/Allocated Non-Billable Time ÷ Resource Capacity
  • Strategic resource utilization
  • Strategic resource utilization is the method of measuring how much a resource is utilized for strategic projects. It is the time spent by a resource that is related to a strategic activity to meet the long-term goal of the organization.
  • We measure strategic utilization as;
    Strategic Resource Utilization = Actual/Allocated Strategic Time ÷ Resource Capacity

#4.How to track resource utilization?

  • Forecast vs. Actual Reports
  • Keeping a tab on utilization levels is imperative to assess employees’ productivity. However, it’s not easy to do so for every resource manually. There are advanced tools that can help you track resource’s and project’s performance in real-time.
  • A Resource scheduler can let managers have a periodic check on resource utilization. Moreover, managers can draw a comparison using actual vs. forecast utilization reports. The actual number of hours are drawn from the timesheets and the forecast time is taken from the resource schedule.
  • Monitor the utilization for different categories
  • It is important to periodically monitor and track resource utilization under different categories. Below-mentioned are three main categories in which you can track the resource utilization: Project, Team, or Individual.


#5.How to Maximize Productive Utilization?

  • Identify under & over-utilized resources
  • When the allotted work is less or more than the resource capacity, it causes underutilization and overutilization of resources. Skill shortage leads to overutilization because a particular resource may be assigned to different projects at the same time.
  • Poor Visibility of resources can contribute to this cause as it can lead to double booking eventually causing over-allocation. The right resource management tool helps managers to detect under and over-utilized resources in a project
  • Effective bench management
  • Bench management in any organization is an ongoing activity and must be carried out strategically. Reducing bench time entails reducing non-billable hours that ensure the resources are allocated to billable or strategic work.
  • The right resource management software helps managers to forecast the demands of the pipeline projects in advance. Using the project vacancy and benched reports, they can go ahead and fill the vacancies with the competent benched resources.
  • Reduce Non-Billable Activities of Resources
  • It is important for an organization to monitor the overall billable utilization of its highly skillful resources with the optimal resource allocation. A resource is profitable only if it’s working hours are carried out on billable or strategic work and is fully utilized against its capacity.
  • Resource managers should keep a check on resources that they spend minimal or no time on mundane tasks such as meetings and discussions. It helps them enhance billability, prevent below-par employee performance, and gain maximum productivity and profitability.

#6. Conclusion: Track Resource Utilization Smarter than Ever

Aakash is the Founder and Lead writer for Sorry, I was on Mute. Read all about the remote work tribe and growth of teleworking at

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Aakash Gupta

Aakash Gupta

Aakash is the Founder and Lead writer for Sorry, I was on Mute. Read all about the remote work tribe and growth of teleworking at

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