Utilization Report
What is a demographic workforce utilization report?
There are many types of utilization reports used across business to show how an organization is using its resources, or to help it identify patterns and trends among its workforce.
A demographic workforce utilization report, also known as a workforce utilization review, is a type of utilization analysis focused on the demographics of the people an organization employs. It aims to establish whether an organization’s employment demographics are consistent with applicant availability in the relevant labor market.
Why is demographic utilization reporting important?
A demographic utilization report is important because it helps an organization promote equality among its employees, ensuring equal access and opportunities for all. It encourages organizations to remain committed to 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 laws that prevent discrimination. The organization ensures the following types of discrimination are addressed in the workplace:
- Age (The Age Discrimination Act of 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 demographic utilization analysis of the labor force can help organizations:
- Identify any underutilized demographic groups
- Establish changes around hiring and mentoring that could boost diversity
- Make data-driven decisions.
Overall, if a utilization report is done right, it can help employers establish a safer, happier, and more inclusive workplace.
How do you conduct a utilization report?
Conducting a utilization report requires three key steps. Follow these to carry out one for your business.
Organize employees into job groups
This involves aggregating job titles into categories centered on seniority or departmental level, for example, management professionals or support professionals. The HR department would then calculate the percentage of underrepresented employees in each job group at their organization.
Determine workforce availability of underrepresented groups
The organization identifies the percentage of underrepresented groups in a reasonable recruitment area who possess the skills to fulfill the job groups specified in step one. Employers should tap into the most current data available to gather the relevant workforce numbers. These resources may include census data and/or from colleges and training institutions.
Look at incumbency vs. availability
Using the steps above, you can compare values to see if the number of underrepresented groups in a job group at your organization is fewer than reasonably expected according to how available they are in your recruitment area. If this is the case, it’s called underutilization. Your team can take this information and set the necessary goals to help drive better diversity and inclusion initiatives.
How do you track labor utilization at your company?
Based on the results from your demographic utilization report, you can establish a goal and relevant KPIs for each job group.
For example, if your utilization analysis identifies you're underutilizing a particular demographic, you may want to refocus your hiring efforts by:
- Reassessing your job descriptions and interview questions to identify bias
- Tracking the entire recruiting funnel
Tracking workforce utilization helps your team stay on track with diversity, equity, and inclusion initiatives that ensure equal access and equal opportunities for all workers.