Tuesday, November 16, 2010

Utilization Rates

The title of this entry is enough to drive any manager or consultant crazy.  With the current state of the economy companies are looking closely at how their employees are working and what they are doing all day at work!  (social networking or solitaire doesn't count as work)

With any type of work there should be some downtime and a utilization rate of 80% is achievable;  however, what happens when there is a lull in either a contract or there is just nothing to do?  I think that companies need a 'make work' board.  There are some interesting strategies that can be used in order to utilize those who are in limbo.
  1. Personal 'Company' Projects
    Friends of mine who work in the internet domain have raved about companies encouraging them to work on personal projects that could become part of the system later.  The parameters are that they spend no more than 10% of their working time on them but they are openly discussed and according to them - a lot of these projects are presented and incorporated in a new release.

  2. Volunteer
    Corporate Social Responsibility is big.  One strategy for fulfilling this is to lend out people to start-ups or other projects that need talent.  If they are not busy - they will be!
     
  3. Create Internal Intellectual Property
    IP is big.  One of the many things that companies don't do is capture this well with their current employees.  If someone is not busy, brainstorm some topics for them to go out and research and write a white paper on.

  4. Cross Train
    Adaptation is the key word these days.  Cross training people to diversify skills is a great way to ensure that knowledge is passed on and in the event of a shortage or if someone leaves the company - there is another person who is able to step in and fill those shoes.  

  5. Spring Clean
    Not the most glamorous of jobs... but necessary.   There are people willing to pitch in and do things like reorganize a room or take an inventory of supplies or actually pitch in and clean.  These people would probably enjoy the chance to sort things out for the future. 
This list is by no means extensive but it is a starting off point.  If your utilization rate has dropped these strategies will keep your employees engaged and adding overall value to the company!