difference between occupancy and utilization

We know Facilities Managers have busy schedules. Occupancy and Utilization are terms that are often used interchangeably, but are different. 1976 Summer; 3 :32678. This is including after-call work, or ACW. See the difference between the two, read this post to the end. Its about using those metrics to ask (and answer) better questions, experiment with new options, and map out a better path for the future. But when we take a closer look, its just not that simple. Learn more here! With a headcount of 20 people at the office on average, your occupied square footage is 1600sqf. To drive change, we must understand. To validate the data at a building or floor level, aggregate data sources such as security badging system data. While space occupancy is important for workplace leaders to gain an idea of the number of people within a workplace, it doesn't fully demonstrate whether the use of your office space is fully optimized. (Plus Tips) Indeed Editorial Team Updated June 24, 2022 Utilization and efficiency are two performance indicators that manufacturing companies use to make plans and determine success. Occupancy and Utilization Is this Focus Room occupied right now? This method is often used in coworking spaces, conference rooms and libraries. Occupancy Storage capacity utilization measures the efficiency of storage spaces within a facility, such as warehouses, stockrooms or server rooms. They can be helpful in comparing production levels to manufacturing capacities. Talk to our team today, to explore how HubStar can help you deliver your workplace strategy faster than you think. Space utilization (and, specifically, workplace utilization), is about how space is being used over time. In an office setting, occupancy refers to the percentage of available space that is currently occupied by people or equipment/desks. Let's put it this way - if you have a difficult time finding out how much of your office space is being used, and for what purpose, then you can't figure out if the amount of space you currently have is enough for now, or for your future needs. By tracking energy consumption in relation to the occupied square footage, organizations can identify spaces that consume excessive energy or areas that are underutilized and can be consolidated to reduce energy waste. Efficiently managed spaces contribute to a positive workplace experience for employees and visitors alike. WebMetrics Space utilization primarily employs quantitative metrics such as utilization rates, productivity ratios, or floor area ratios. By understanding how spaces are used, organizations can identify underutilized areas and repurpose them accordingly. WebHospital utilization: An analysis of SMSA differences in occupancy rates, admission rates, and bed rates. In particular, this software should allow them to layer multiple data sets. This is a form of Headcount, and is also often called a Census. Space utilization refers to the degree to which a specific area or facility is used effectively for its intended purpose. The global pandemic has shown there is another wayand that other way needs data-driven decision-making. The problem is, they all sound very similar and are sometimes confused with one another. Our language is often centered around placewhere people are working. Relogix Utilization Studies provide you with objective data that helps you make informed decisions about office space needs, identify areas for cost savings, and optimize real estate portfolios for maximum efficiency and productivity. They can do this by combining multiple types of workplace metrics to create actionable presence-based utilization data. It is the percentage of paid time that is spent on any productive activity.It can be expressed as (total talk time + total hold time + total ACW + time spent on other productive activities) / paid hours. Space Utilization and Space Occupancy: Key Differences. The extent to which a physical space is occupied at a given point in time. Every data source comes with its own issues. Also known as occupancy or usage, building occupancy is the number of people using the building each day. London, UK Difference Between Occupancy and Utilisation When measuring individual spaces for occupancy and utilization, make sure you communicate effectively with your employees about the purpose of the sensor, what data its collecting, and how. The two go hand-in-hand - occupancy tells you how many people are in a facility, utilization tells you how those people are interacting within that environment. The aim is to clarify the disparities between these terms, elucidating their unique characteristics, implications and practical applications. This metric helps determine the capacity requirements for a given area, ensuring that the space can accommodate peak demand without causing discomfort or safety issues. Occupancy and Utilization WebOccupancy differs from utilization, in that occupancy considers only live logged in time, but utilization considers total time at work (including logged out time such as training). You might find out that now only 40 employees are working from their desks on average per week., With a 57% utilization rate for these workstations, that may tell you that you can probably reduce your dedicated workstations if you don't plan on increasing headcount or changing remote work policies in the next 6 months. This is some text inside of a div block. Just download it as a PDF and read it offline, anytime, anywhere. No time to read the full article? Contact-related activity covers talk-time, hold, and after-call work (ACW). Web 16,005 Filed under - Workforce Planning, injixo, Occupancy, Workforce Management (WFM) We answer four of the most common questions that our readers put to us, all regarding the topic of contact centre workforce management (WFM). Occupancy sensors can be installed discreetly in various locations, such as ceilings, walls or doorways. On the other hand, in those 6 hours of it being occupied, the meeting room designed for 20 people was used by an average of 5 people. This data can also help ensure that every space is supporting both their employees and their long term business goals. Massachusetts, USA If your first employee arrives at 9 AM and leaves at 6 PM (9 hours) your building has a 75% utilization rate. The Secret to Managing an Office Well Lets talk about two crucial workplace metrics office space occupancy and utilization. This means that at any given time during the day, the occupancy of a space may be different. What does space utilization have to do with the planet? Occupancy and utilization go hand-in-hand. At Relogix, we offer flexible plans to fit your needs. WebHenriette Potgieter, a call centre best practice management consultant at QBIC Solutions, tells us: Occupancy differs from utilisation in that occupancy considers only live logged-in time, but utilisation considers total time at work (including logged-out time such as training). The space utilization rate is a fundamental metric used to determine the efficiency of space usage within a facility. Occupancy typically will be calculated as: (Talk+Hold+Wrap+Customer-related activities), divided by (Talk+Hold+Wrap+Customer-related activities+Available Time). Utilization Daily and average peak utilization; Peak frequency; How is occupancy different? Good space utilization metrics allow decision makers to ask much more nuanced and useful questions about their spaces, such as: Occupancy measures how many people are in a space, while utilization measures how theyre interacting with that space. Were transforming the experience of work with industry leading partners who share our vision. What Is the Difference Between Occupancy and Utilisation? While occupancy is typically thought of as the measure of occupants at a given time, it may also be used to describe how many workspaces are occupied. For this reason, companies are beginning to use presence-based utilization from the following sources: They may also want to analyze this data alongside less precise methods.

Utilization

The occupancy rate is a fundamental metric that measures the percentage of available space being used at a given time. Conducting regular surveys and implementing check-in systems can provide valuable insights into space utilization. And while people may use these terms interchangeably, they are definitely not the same thing. You may decide that even though you want to downsize your existing office space, you'll still have to keep, or even add more meeting rooms, but have fewer workstations or individual desks. With so many factors in the works and so many different ways of capturing data, its key that organisations make decisions based on the right data. WebHospital utilization: An analysis of SMSA differences in occupancy rates, admission rates, and bed rates. ACW) / hours logged in (and ready to take contacts).Good practice is not to exceed 90% occupancy. Here are a couple of space utilization metrics: These (and a few other) metrics apply to different aspects of space optimization so you get to pick and choose which ones to apply depending on the situation.. Your security badging data shows 90 people attended on Monday, giving a building occupancy of 90%. hybrid workplace that works for everyone. Occupancy sensors determine at what point spaces have had signs of life. It shows the ratio of agents productivity to their capacity. Click here to learn more about how we can help you!Want to read more about how to calculate how much office space you really need? WebOne major difference between occupancy and utilization in call centers is that occupancy only considers the time agents are active on the floor, while utilization includes total work time. Together, it paints a clear picture of a workplace in motion. It measures the utilization rate of desks or workstations compared to the total number of desks available. Also known as usage or accessed, building utilization is the total amount of time a building is used out of the total amount of time it is available. Join Andrew Millar & Sandra Panara for a webinar. So the only reliable way to overcome these issues is to layer data sets together. Ultimately, the goal is to ensure that any time in the office is productive time well spent. They can be helpful in comparing production levels to manufacturing capacities. See why the worlds best brands choose OfficeSpace, the only solution that has everything you need to meet the demands of hybrid work head on. Occupancy vs Utilization. The Facilities/CRE/Workplace sector has a language problem. In this article, we settle the occupancy vs utilization question. In contrast to space utilization, space occupancy focuses on the actual presence or occupancy of individuals within a given space at any given time. First up, what does occupancy mean in a modern office? Or maybe it makes sense to hold some larger training sessions off site. Often, call center leaders use utilization and occupancy interchangeably or focus on one over the other. TheOccupancyof a neighborhood reflects the situation in at a given moment in time. When it comes to the employee experience, a physical space can and should enable great work. This includes unproductive at-work activities such as breaks, meetings, training, and 1:1s, plus out-of-office time for time off, sickness, tardiness, and general unexplained absences.Shrinkage is an important number to track, since it plays an important role in how many people need to be scheduled in each interval. Utilization From there, decision makers will need to understand that theres no one-size-fits-all approach to the office that will work for every company. How can a facilities manager use them effectively? What's the best way to get occupancy & utilization data? To calculate the space occupancy rate, you simply divide occupied floor space by the total floor space (this means excluding restrooms, pantries, and other non-workable areas, but includes meeting rooms). WebHenriette Potgieter, a call centre best practice management consultant at QBIC Solutions, tells us: Occupancy differs from utilisation in that occupancy considers only live logged-in time, but utilisation considers total time at work (including logged-out time such as training). You might also find out that there are some days the desks are utilized more than others., You may also see how many hours each meeting space is occupied for on average, and divide that by the number of hours they're available for every day. These cookies do not store any personal information. Occupancy rates on their own may no longer provide enough detail in a world where office use fluctuates. This optimization can lead to improved workflow, reduced congestion and increased productivity. : walking the floor) and employee surveys. A high space utilization rate indicates optimal space usage and signifies an efficiently managed facility. Exploration in Econ Res. And to understand, we must start by collating data. The Occupancy of a neighborhood reflects the situation in at a given moment in time. WebAs nouns the difference between utilisation and occupancy is that utilisation is the act of using something while occupancy is the act of occupying, the state of being occupied or the state of being an occupant or tenant. By understanding utilization patterns, organizations can optimize scheduling, allocate resources effectively and implement flexible workspace strategies such as activity-based working or staggered shifts to accommodate varying occupancy needs. Utilization focuses on total login time and total paid time. Utilization In an office, a particular meeting room was occupied for 6 hours out of the 9 hours of a workday, so space occupancy would be 66.67%. This metric helps organizations identify opportunities for energy efficiency improvements while also optimizing space usage. (Plus Tips) Utilization vs. (Plus Tips) Utilization vs. Occupancy is certainly a more day-to-day application of space management for many businesses, if not always by choice. Occupancy rate measures the percentage of available units or spaces currently being leased or rented. So whats the difference between these two essential metrics: occupancy vs utilization? The Utilization of a neighborhood consists of a set of occupancy observations aggregated over a longer timeframe, such as a week or 90 days. Which, we agree, makes sense. This is some text inside of a div block. 1976 Summer; 3 :32678. difference between And its quickly emerging to illustrate how space is being used in a dynamic workspace. Occupancy vs Utilization. Difference Between Occupancy and Utilization It is the inverse of shrinkage. Difference between occupancy and utilization. What Is Occupancy And Utilization Copyright 2023 BOOQED. Similar to occupancy, utilization is also calculated as a percentage. This metric provides insights into how spaces are used throughout the day or week and identifies peak and off-peak periods. See the difference between the two, read this post to the end. This is along with what can be done to flatten them out. So whats the difference between these two essential metrics: occupancy vs utilization? WebHow do occupancy and utilization work together? Meanwhile, similar as in facility management, the utilization rate measures how much available space is being used efficiently and effectively.Note that occupancy rates are very important in the hotel industry as well. Daily and average peak utilization; Peak frequency; How is occupancy different? Tracking dwell time helps identify areas that are frequently occupied for extended periods or, conversely, spaces that are underutilized. WebMetrics Space utilization primarily employs quantitative metrics such as utilization rates, productivity ratios, or floor area ratios. Due to both the demands of the hybrid workplace and the rising costs of real estate, companies are placing more focus on space utilization than in the past. The last few years have highlighted not only how the world moves on quickly, but also how it never stands still. What Is Occupancy And Utilization So, space utilization would be 25%. A popular and reliable method to monitor space occupancy is using occupancy sensors. ACW) / hours logged in (and ready to take contacts).

Good practice is not to exceed 90% occupancy. This is usually broken down into floor level data. Occupancy occupancy Occupancy is certainly a more day-to-day application of space management for many businesses, if not always by choice. Space utilization vs. occupancy How are they actually behaving and using these spaces? Occupancy is certainly a more day-to-day application of space management for many businesses, if not always by choice. Call Center Forecasting Methods Part 1: How to Forecast Workload, Occupancy in Contact Centers: Definition, Impact, & Management, How to Apply Erlang C in Call Center Planningwith Excel, How to Include Call Center Shrinkage in Your Planning Process, e-learning courses for every contact center role. Sydney, AU Its hit an average of 50% in major US metropolitan areas, its reached the highest levels since the pandemic in, What the secret to a workplace people love? By analyzing camera footage, organizations can determine the number of people present in different sections or identify busy periods. How can a facilities manager use them effectively? Web 16,005 Filed under - Workforce Planning, injixo, Occupancy, Workforce Management (WFM) We answer four of the most common questions that our readers put to us, all regarding the topic of contact centre workforce management (WFM). WebOccupancy differs from utilization, in that occupancy considers only live logged in time, but utilization considers total time at work (including logged out time such as training). E.g. If you are also inflating the requirement figure for occupancy (see above), the two percentages should be summed.

Since productivity is the inverse of shrinkage, 25% shrinkage equates to 75% productivity.

. Well also explore why presence data is now the metric of choice for modern FMs. My advice to companies is that you cant rely on just one source of data, says OfficeSpace Senior Product Manager Kathleen Williams. Difference Between Occupancy and Utilization Occupancy Of course, call center management is quite different from facility management. Let's Get Real Episode 17: Building a CRE Technology Toolbox, How To Kick Start The Best Workplace Strategy Using Space Utilization Data, Let's Get Real Episode 16: How Real Estate and Tech Work Together, How to Use Your Booking Data to Build a Better Strategy. But as Neil Ushers article this week has highlighted, the office occupancy rates in London are currently at 27%. Productivity is the percentage of an agent's paid time that is productive time. Workforce Management FAQs A conference room is booked for 4 hours a day and is available for use for 12 hours a day. The period of time during which someone rents or otherwise occupies certain land or premises. From the first day of searching for a suitable space for your business, occupancy is always important. if you are aiming for 83% occupancy, you should inflate your staffing requirement by 1/(0.83)-1 = 20%.

It shows the ratio of agents productivity to their capacity. https://560643.fs1.hubspotusercontent-na1.net/hubfs/560643/injixo%20-%20Blog/posts/occupancy_angry_bored_jixo.png, forecasting-occupancy-utilization-productivity-whats-the-difference,

These familiar metrics are critical to managing every contact center. Exploration in Econ Res. Utilization Skip to content Download our Report: Navigating the World of Hybrid Work: A Benchmark Study in Global Workspace Usage. It measures the percentage of space that is actively utilized compared to the total available space. This website uses cookies to improve your experience while you navigate through the website. Space utilization vs. occupancy For example, your HR department says 100 people use the building. Occupancy Desk utilization metrics focus specifically on workspaces within an office environment. It provides a quantitative measure of how densely an area is occupied, which is crucial for ensuring a comfortable and productive environment. Were writing this post because there is an ongoing confusion of what the difference between occupancy and utilization of a space is. Conexus integrates and layers data sources to surface data stories: By collating and aggregating data, Facilities Managers will be armed with the right insights to enable key decisions on space and how it impacts the employee experience. For many, the location no longer matters. Difference Between Occupancy and Utilization Occupancy Note that total seat occupancy (how many seats were used at some point during the working day) can help to inform building and floor level occupancy, but its usually not an accurate measure. How many of those different types of space do people need. Meanwhile, utilization focuses on the ratio of their overall productivity to their capacity. And while people may use these terms interchangeably, they are definitely not the same thing. Analyzing utilization patterns involves examining occupancy data over different time frames, such as daily, weekly or monthly patterns. If you dont factor in shrinkage when calculating how many staff to schedule, you will always be understaffed. Shrinkage is the percentage of paid time that employees are not available to handle contacts. Occupancy represents the people within a workplace; utilization represents their interaction with those surroundings. People may follow one another into the building without swiping their own designated fob, or some hold the doors open for others. This is also referred to as productive time. This is a form of Headcount, and is also often called a Census. See the difference between the two, read this post to the end. So, for the meeting room, space utilization is not good (only 25%) but space occupancy is okay (66.67%). By analyzing density metrics, organizations can identify opportunities for reconfiguring spaces, implementing hot-desking or shared workspace strategies or adjusting furniture layouts to optimize occupancy and productivity. By analyzing traffic patterns, organizations can identify bottlenecks, congestion points or areas of low activity. If there are 34 employees in an office space that supports 50, the space utilization rate is 68%. It is calculated by dividing the actual occupied area by the total available area and multiplying the result by 100. Space utilization and space occupancy are two related but distinct concepts in facility management. Companies need good space utilization data in order to maximize the value of their physical spaces. These sensors can detect movement, heat or infrared signals and provide real-time data on how many people are present in a given area. Bring people together with purpose, to connect and collaborate. That's about a 30% utilization rate. Difference Between Occupancy and Utilization But since wasting space is wasting money, companies still need to keep their occupancy rates optimized as part of their overall real estate portfolio management strategy. This means that at any given time during the day, the occupancy of a space may be different. Products For Business QUBIC HARDWARE + SOFTWARE One of the hardest lessons to learn in user experience is that researchers cant always trust what test participants tell them. WebWhen measuring occupancy based on Capacity, this involves counting the actual number of people present. Whether you rent or own your commercial property, office space is likely one of your businesses' largest investments. Now you've got a better understanding of office space utilization, as well as the role of space management software in optimizing your workplace! Smart locks and access control systems that are programmed to allow access with a specific QR code or pin for a booking, also provide data around usage to its administrators, plus control access to the space itself.. Understanding agent occupancy and utilization rates, and creating the right balance between idle time and talk time, are both critical when trying to maximize productivity and resource management. We also use third-party cookies that help us analyze and understand how you use this website. I'm the Product Manager for HubStar's Smart Building tool suite helping companies worldwide to make data-driven decisions about utilizing their building portfolios. Facilities management experts talk about where the industry is headed, what to expect, & how to prepare. The company is able to save money on real estate they dont need anymore, and the employee is able to get some flexibility, without sacrificing collaboration in the workplace, culture, or employee experience., Get a personalized demo and create a Consider that 50% of desk bookings within OfficeSpace are last-minute, made by employees less than 48 hours in advance. [ Google Scholar ] Choose the content that you want to receive. Subscribe to our blog and stay up to date with the latest WFM resources, events and expert content! People counter sensors will determine at what point spaces have had signs of life and by how many people, so are best used in open collaboration spaces and meeting rooms. However, it is slightly more complicated than that, and can be broken down into many other metrics! Unveiling the Secrets of Space Utilization and Occupancy Tracking. It is mandatory to procure user consent prior to running these cookies on your website. difference between Occupancy and Utilization But before considering the location and the physical space, we have to consider culture, processes, and technology. We have to first understand why people work, how they work, and when. Occupancy Space utilization metrics can be further distinguished for different types of spaces: We further clarify the details of these metrics that are often used across HubStars products below. Desk and room bookings, check-ins, and cancellations. Occupancy While space utilization measures the efficiency of space usage, space occupancy measures its capacity. The effectiveness of your office space boils down to 2 crucial elements -occupancy and utilization. In a nutshell, call center occupancy relates to the time that the agent is actually logged in. It is the percentage of paid time that is spent on any productive activity.

It can be expressed as (total talk time + total hold time + total ACW + time spent on other productive activities) / paid hours.

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