Understanding Utilisation: A Valuable Addition to Capacity & Occupancy

In my recent blog, I explored how measuring capacity and occupancy can give you a clear view of how work is distributed across your team. But to get a truly well-rounded picture of team performance and productivity, it’s worth looking at one more metric: utilisation.

Utilisation tells you how much of someone’s total available working time is being spent on productive, value-adding activities. This could include resolving tickets, handling client requests, attending external meetings, or contributing to project deliverables — essentially, anything that drives outcomes for the business or customers.

The formula is simple:

Utilisation (%) = (Productive Work Hours ÷ Total Available Hours) × 100

What makes utilisation distinct from occupancy is its broader lens. While occupancy looks at how much of a person’s available capacity (after leave, meetings, admin, etc.) is being used, utilisation considers their total working time. It’s particularly useful when you want to:

• Monitor how effectively time is being used across teams

• Identify if people are under or over utilised

• Support decisions about headcount, workload balancing, or project allocation

• Understand where time is being spent — billable vs non-billable, BAU vs strategic work

Utilisation is especially valuable in environments where work is varied and time isn’t always tracked in exact metrics (like average handling time). It encourages a focus on outcomes and value delivery rather than just activity.

When used alongside capacity and occupancy, utilisation rounds out your understanding of team dynamics. It enables better planning, supports data-driven decisions, and ensures you’re not just looking at how busy people are — but whether their time is being used in ways that truly matter.