Difference Between Occupancy and Utilization

In a contact centre, getting the most from your workforce without pushing them too hard is a constant challenge.

Two key metrics – occupancy and utilization – are often used to measure efficiency, but they’re frequently misunderstood or used interchangeably.

So when one of our readers, Victoria, asked our Community of industry professionals:

“What is Difference between agents Occupancy and Utilization and what is formula for both“

We wanted to share their responses with you.

Occupancy and Utilization Are Often Confused

Occupancy and Utilization are terms that are often used interchangeably, but are different. This is very important in contact centres and BPO.

The Difference Between Occupancy and Utilisation

Have a read of this article where we explore these two metrics further, explaining each fully and highlighting the value of calculating both in the contact centre.

Alternatively see these two articles about how to Calculate Occupancy and How to Work out How Many Staff you Need

Maximum Occupancy is the Most Common Resource Planning Mistake

The simple rule is you shouldn’t let maximum occupancy go above 85%.

Contributed by: Jonty

Occupancy Differs From Utilization

Occupancy 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).

Occupancy Formula

Occupancy = What percentage of time that my agents are logged in live, are they actually productively busy with a customer activity, or are they available to do more?

The typical formula to calculate occupancy is:

(Talk + Hold + Wrap + Customer Related Activities) ÷ (Talk + Hold + Wrap + Customer Related Activities + Available Time)

Occupancy is especially important in schedule design, as it assists with measuring schedule optimization, so as not to have agents sitting and waiting for calls.

Utilisation Formula

Utilization = What percentage of the time that I pay my agent, are they logged in and assisting or available to assist with a customer activity?

The typical formula to calculate utilisation is:

(Talk + Hold + Wrap + Customer Related Activities + Available Time) ÷ (Paid Hours On-Site / Total Shift Time)

Utilization is important as input to shrinkage or overhead calculations, as it considers “non customer-related activities” that still get paid for, but that takes the agent away from servicing a customer, such as:

• Training Time
• Coaching
• Personal Breaks

Contributed by: Henriette

Occupancy vs Utilization

We also have a video where Ray Agar, Solutions Consultant at injixo, explains the differences between occupancy and utilization, and how contact centres can optimize them.

This article was made possible due to the great community of experts we have at Call Centre Helper, to get involved just join our LinkedIn Community and and if you aren’t already make sure you are following us on LinkedIn to see our latest content.

For more articles on staffing and calculations, you should read these articles next:

• How to Work Out How Many Staff You Need in a Contact Centre
• How to Calculate Utilisation
• How to Calculate Occupancy in the Contact Centre

Author: Jonty Pearce
Reviewed by: Robyn Coppell