Profit Blog

Jarmo Manninen & Muutosdraiveri Oy


What does the company's resource utilization rate mean?

4. helmikuuta 2025

In general, the utilization rate refers to the part of the production capacity or other capacity that is currently in use. By monitoring the company's resource utilization rate, the company can obtain useful information about how the company's resources are being used. The utilization rate is often calculated so that during the monitoring period, the resource utilization rate is the working time used by the resource to perform work per the working time available for the resource to perform work. However, everything that is done in a company must be aimed at producing a result. This means that each resource in the company must do as much and as valuable work as possible, for which the customer is willing to pay the invoice. For this reason, in these blog posts and in the books I have written, the utilization rate tracks the working time used by the company's resources for billable work, and not the working time used by the resource to perform work. It is worth remembering that from the company's perspective, all work performed in the company that cannot be invoiced to customers is a cost in the company's result. As a result, I use a different calculation method for calculating the resource utilization rate than the one I have presented above as a commonly used method. More on this below.

In these blog posts and in the books I have written, the resource utilization rate is calculated so that during the resource monitoring period, the resource utilization rate is the working time used by the resource for billable work per the working time available for the resource's work. When, in addition to monitoring the resource utilization rate, the resource monitoring also includes how much of the work done by the resource has been invoiced to customers in euros during the monitoring period, it is possible to find out how the work done by the resource has affected the company's results during the monitoring period and what opportunities the work done by the resource has to increase the company's results in the future.

The impact of the work of those people in the company on the company's results must be monitored differently. I will return to this issue later in these blog posts.

How has resource utilization rate monitoring been implemented in your company?

I encourage you to share this blog post of mine on social media. If you have any suggestions for the topics of the next blog posts, I will gladly accept them.

I hope that you were interested in this matter and that you can continue to be involved.


I have written four books on creating the conditions for the company's financial management, and they are available in well-stocked bookstores and online bookstores in Finland, for example from BoD (Books On Demand) at:







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