Resource underutilization: how to identify skills underutilized or overutilized?

Here’s what you’ll get from this post 👇

1️⃣ You’ll learn how to pinpoint where your resources aren’t being used well.

2️⃣ You’ll discover ways to improve how you assign tasks.

3️⃣ You’ll get insights into creating a company culture where everyone feels valued and empowered.

It’s all about getting the most out of your team’s skills and watching your business thrive.

Let’s get started!

💡 What is resource underutilization? Resource underutilization happens when workers are not assigned tasks or responsibilities that match their skills, potential, or capacity. It‘s not just about underwork; it‘s about having people in roles where their abilities go unchallenged or underappreciated. When employees aren’t given the chance to contribute fully, it hurts the individual, the team, and the business as a whole.

What is skill utilization in the workplace?

Skill utilization in the workplace is all about making the most of your team’s talents. It’s about putting those skills to work, not letting them sit idle. Think of it this way: you’ve invested in your people, now it’s time to see that investment pay off.

High skill utilization means employees are engaged, productive, and contributing to the company’s success.

How are skills underutilized or overutilized in the workplace?

Skills in the workplace can either be neglected or stretched beyond capacity, and both scenarios create challenges for individuals and teams. Recognizing how these patterns emerge will help you make better decisions about role alignment and workload distribution.

Underutilized skills at work: what it means

Underutilized skills occur when employees possess abilities or knowledge they rarely use in their current role.

For example, assigning someone with advanced technical expertise to routine tasks wastes potential and lowers engagement. If you overlook what people bring to the table, you reduce their sense of purpose and limit growth opportunities.

Overutilized skills at work: the opposite side

Overutilization happens when employees‘ skills are stretched excessively without support.

Consistently assigning high-level tasks to a few individuals may produce results in the short term but risks burnout and dissatisfaction.

When you ask too much of someone without resources or relief, you create long-term performance issues.

Defining the terms in the workplace context

In the workplace, underutilization refers to an employee‘s skills being unused or underemployed, leaving them feeling undervalued.

Overutilization, by contrast, occurs when skills are pushed to the limit without consideration for balance or sustainability.

Both conditions reflect a mismatch between talent and task.

Aspect	Underutilization	Overutilization
Definition	Skills or abilities are unused or rarely applied.	Skills are excessively demanded or overburdened.
Employee Experience	Leads to frustration, boredom, or feeling undervalued.	Causes stress, burnout, and fatigue.
Workplace Impact	Stagnates growth and innovation.	Reduces sustainability and long-term productivity.
Root Cause	Poor task alignment or lack of challenging opportunities.	Over-reliance on specific individuals or skills.
Outcome	Talent is wasted, and engagement drops.	Employee well-being and morale decline.
Solution	Assign tasks that leverage employee strengths.	Balance workloads and provide adequate support.

 

What is underutilization in a service business?

In a service company, underutilization often comes down to bad planning or misalignment. You hire talented people but don‘t put them in the right roles.

These employees may be eager to take on more or show what they‘re capable of, but they’re held back by unclear tasks or roles that don’t fit. This stunts your company‘s growth in both the short and long run.

Common Causes of Underutilization

Cause	Description
Poor Job-Role Alignment	Roles don‘t match skills. Employees are underused or frustrated.
Lack of Training or Development	No opportunities for growth, leading to stagnation and low morale.
Miscommunication Between Managers and Employees	Lack of clarity leads to employees doing the wrong tasks.
Overemphasis on Cost-Cutting Without Strategy	Cutting resources without thinking long-term can hurt talent and efficiency.

Examples of underutilized skills in the workplace

Underutilized skills can leave employees feeling disconnected from their true potential. When companies fail to tap into their team’s full range of abilities, both employee satisfaction and overall productivity suffer.

Here‘s a look at some common skills that don‘t always get the attention they deserve – and how you can make the most of them.

1. Communication Skills

Employees with strong communication skills often find themselves in roles that don’t require much interaction. Whether they excel at public speaking, writing, or team collaboration, these talents can be put to better use.

What to do: Recognize those with strong communication abilities and involve them in team presentations, client meetings, or cross-department projects. It‘ll not only give them more of what they‘re good at, but it can also improve team spirit.

2. Leadership Skills

Many employees show natural leadership qualities, yet they‘re not always in positions where they can lead. They might have the ability to motivate and guide others but remain stuck in roles without leadership responsibilities.

What to do: Don‘t wait for an official promotion. Instead, give them small teams to manage or let them run projects. This will allow them to flex their leadership muscles and help the team grow, too.

3. Technical Skills

What if you‘ve got someone great at coding or digging into data, but they‘re in a role that doesn‘t call for it? They might be stuck in a customer service or admin job that doesn‘t let them use their technical side.

What to do: Identify areas where these technical skills can make a difference. Encourage employees to take on tasks that involve technical problem-solving or creative solutions. Temporary assignments can give them a chance to contribute in ways that align with their skills.

4. Creative Skills

Some people are brimming with ideas, but their job doesn‘t allow them to express that. They might have skills in design or innovation, but their daily tasks are more routine and don‘t tap into that creative side.

What to do: If you see creativity in someone, invite them to brainstorming sessions or process redesigns. Let them collaborate with teams on new approaches that could help move things forward.

5. Problem-Solving Skills

Problem-solving abilities often go unnoticed until there’s a crisis. Employees who can analyze situations, identify issues, and offer solutions may not be given enough complex challenges to tackle.

What to do: Give them tough situations to handle. Let them take on real problems where they can put those problem-solving skills to work. It‘ll make a difference for the team.

How to stop resource underutilization?

If you want to stop wasting your team’s time and talent, you have to be hands-on with how you manage their workload. Let‘s break it down:

1. Track how your employees spend their time

Start by keeping track of how your team spends their time.

Use a simple resource time-tracking tool to gather data. This gives you a clear idea of where each person is spending their hours. From there, you can spot where things might be slipping through the cracks.

Once you see patterns, you can shift things around to make sure everyone‘s working on what matters.

2. Look at the time reports

Take a deep dive into those time reports.

They‘ll show you who‘s overloaded and who might be underused. If someone‘s always busy but never challenged, it‘s time to add some new tasks. If someone‘s not busy enough, they might need more to do.

These time log and time tracking reports help you figure out who needs what, so nobody‘s burning out or sitting idle.

3. Plan the workload carefully

Plan out who will be doing what and when. Break big projects into smaller chunks. Make sure everyone knows exactly what‘s expected.

Keep an eye on the work and adjust if someone‘s taking on too much or too little.

With careful planning, you‘ll keep the work balanced and the team moving forward.

4. Ask for feedback from your team

Get your employees talking.

They know their workload better than anyone. Make space for them to share how they‘re feeling about their tasks.

Regular one-on-one chats will make them feel heard.

When they open up, you‘ll get real insight into what‘s working and what‘s not. Take that feedback seriously, and make changes.

This keeps people engaged and helps you avoid overloading or underusing anyone.

5. Set clear, manageable actions

Big tasks can feel overwhelming, so break them down. Be clear about what needs to be done and by when.

No room for guesswork!

When people know exactly what to focus on, they‘ll stay on track. Keep things realistic so no one‘s biting off more than they can chew.

6. Map out your team‘s skills

Take a look at what each person brings to the table.

Skills mapping helps you spot where someone might be underutilized. It shows you who‘s great at what and helps you assign tasks more wisely. Make sure to update this map as people learn new skills.

A quick skills check will let you know if someone‘s got untapped potential, so you can make adjustments as needed.

How to find employees who are underutilized at work?

To identify employees whose skills are being underutilized, look for signs that indicate they may not be fully engaged or challenged in their current roles.

Here are some key indicators to watch for 👇.

1. Look for low engagement

If your employees seem disengaged, it‘s time to take notice.

Their lack of interest often shows up as less participation in meetings or reluctance to take on new tasks. If they‘re not bringing ideas to the table or showing excitement for projects, it‘s clear their potential isn‘t being tapped.

Encourage them to speak up, offer new challenges, and see if that sparks their interest.

2. Watch for high turnover or stagnation

When employees start leaving or their performance stalls, something‘s off. You might notice they‘re no longer growing in their role, and their contributions start to feel stagnant.

Act on this quickly–invest time in one-on-ones to dig deeper into their feelings and motivations. Identify if the work is no longer stimulating or if they feel overlooked.

3. Pay attention to qualifications vs. job tasks

If employees are working beneath their qualifications, that‘s a glaring sign of underutilization.

Maybe you‘ve got a software developer stuck in basic coding tasks, or a marketer handling menial admin work. This mismatch is not only frustrating for them but also costly for your company.

Give them the responsibility they‘ve earned and let them take charge of projects that challenge their skills.

4. Signs of boredom or decreased motivation

When employees aren‘t being stretched, boredom sets in fast. If they‘re sluggish, missing deadlines, or putting in less effort than usual, you‘re probably seeing signs of underuse.

Encourage them to get involved in projects that require more of their talents, or set up mentorship opportunities for growth.

5. Lack of long-term projects

Employees who only get short-term tasks might feel like they‘re never trusted with significant responsibility. These small tasks prevent them from fully showcasing what they can do.

Ask them about the long-term projects they‘re passionate about and actively assign them work that lets them plan and execute over a longer horizon.

6. Listen for complaints about being underappreciated

If your employee feels like their work isn‘t recognized, they‘ll likely voice frustration, even if it‘s just in subtle ways.

If you hear repeated comments like, “I did all that work, and no one noticed,” it‘s time to adjust.

Regularly acknowledge their efforts, but also discuss how their skills can be better utilized moving forward.

7. Notice procrastination or slacking

An employee who is procrastinating or avoiding tasks might be doing so because the work doesn‘t challenge them. They‘ll avoid tasks that they find monotonous or too simple.

Challenge them with more complex assignments, and see if their engagement increases. Procrastination is often a signal to push harder for better work alignment.

8. Spotting underuse in performance reviews

Review your employee‘s performance evaluations carefully. If you see that their accomplishments are either undervalued or don‘t match their skill level, it‘s time to act.

Take those opportunities to discuss their skills in-depth and reassign projects that better align with their expertise.

9. Use skill assessments to guide action

If you‘ve done skill assessments for your team, compare them with their day-to-day tasks. If there‘s a gap between their strengths and their responsibilities, it‘s time to shift focus.

Encourage your employees to take on more challenging projects that play to their abilities, and let them demonstrate their full potential.

10. Check for unclear career growth paths

Employees who don‘t see a clear path for advancement often feel their skills are underutilized. They may start looking for new opportunities where they can grow.

Engage in discussions about their career aspirations, and make sure they know the steps to take on bigger challenges. Keep their career goals in sight to help them feel more invested and valued.

How to use Birdview PSA to identify and support resource utilization?

Birdview PSA is a resource management software designed to help organizations optimize the use of their teams, track workloads, and streamline project delivery.

With its intuitive interface and advanced features, Birdview PSA allows managers to gain real-time insights into resource allocation, identify underutilized or overburdened team members, and make adjustments as needed.

Whether it’s tracking time, scheduling resources, or aligning skills with tasks, Birdview PSA simplifies resource planning and ensures that every team member is contributing at their fullest potential.

Here’s how you can start using Birdview PSA to take charge of your resource management:

1. Real-time visibility into resource workload

Birdview PSA‘s People View gives you a bird‘s-eye view of your team‘s workload. In seconds, you can see who‘s handling which tasks, how many hours they‘ve got scheduled, and who‘s free. That means you can shuffle things around to keep everyone busy–but not burned out.

Take resource planning a step further with the Job Roles View. Match tasks to team members with the right skills and gauge capacity at a glance.

Assign work with precision and keep your projects on track by making smarter decisions about who handles what.

2. Optimize workload distribution

Use Birdview PSA’s Resource Scheduling features to keep your team‘s workload balanced. Shift tasks in real-time with a simple drag-and-drop interface, and make sure everyone has a fair share of work.

Take control of your Project View to see exactly what each project demands. Match those needs with your team‘s available capacity to prevent delays and keep progress steady.

That way, you avoid bottlenecks before they even pop up. The result? Your team stays focused, and deadlines feel doable, not daunting.

3. Strategic resource scheduling

Use Birdview PSA’s Gantt Chart View to gain a clear snapshot of your project timelines and resource usage. Schedule resources across multiple projects to avoid overlaps and keep everything running smoothly.

Spot scheduling conflicts early, adjust quickly, and keep your projects moving forward without delays.

Need a broader view?

The Calendar View puts all activities and deadlines in one place, so nothing falls through the cracks. Adjust schedules, fix overlaps, and keep everything moving forward without unnecessary stress.

4. Time tracking and utilization reports

Use Birdview PSA’s time tracking features to label time entries as billable or non-billable and see exactly how your team spends their hours. From there, you can create detailed timesheets and reports to see exactly where your team‘s energy is going.

These reports don‘t just sit there–they give you real insights. Spot trends, shift priorities, and get more hours focused on work that pays off.

It‘s not about squeezing every minute; it‘s about making those minutes count.

5. Skills management and matching

Assign tasks to the right people and watch your projects move forward with precision. Use Birdview PSA‘s AI tools to analyze your team‘s skills and pinpoint the perfect match for each job. Delegate confidently, knowing you‘re tapping into your team‘s strengths.

Save time by cutting out the guesswork. Focus on achieving better results while improving how your team works together. When people take on tasks that fit their expertise, they perform better and feel more valued.

6. Capacity planning and forecasting

Anticipate your future resource needs by using Birdview PSA’s forecasting features to take charge of your team‘s capacity. Analyze historical data and project pipelines to predict resource demand and act early to prevent shortages or overstaffing.

Use the “What-If” Scenarios tool to test different resource allocation strategies and pick the best path forward. Stay ahead by planning smarter and making proactive decisions that keep your projects on track.

7. Managing project and activity dependencies

Birdview PSA helps you track dependencies between tasks and projects.

With Cross-Project Dependencies, you can monitor how delays in one area affect others.

The Activity Health feature helps you track the status of each task and address risks early. By managing dependencies effectively, you prevent bottlenecks and keep projects moving forward.

8. Reporting and Dashboards for Continuous Improvement

Birdview PSA offers custom reports and dashboards that keep you informed about how well resources are being used.

Use the Report Generator to create detailed performance reports for your team and clients.

The scheduled PDF reports make it easy to stay on top of resource utilization trends.

Dashboards give you a snapshot of your team‘s capacity, so you can adjust as projects evolve. Stay on top of KPIs and address issues before they affect project delivery.

Birdview PSA Online User Reviews

As of the writing date, Birdview PSA has 4.5 out of 5 stars and 376 reviews on Capterra.

Here‘s what some of Birdview PSA‘s users have to say about their product.

Marcy M., a PMO Manager in the Marketing and Advertising industry (51-200 employees), found Birdview PSA to be a complete, well-thought-out, user-friendly solution with amazing customer service. Marcy praised Birdview PSA for meeting all her organization‘s extensive needs and wants, which competing tools could not fulfill. She highlighted the platform’s ongoing innovation, customization options, and exceptional customer service.

Carri E., a Program Manager in the research industry at a company with 201-500 employees, found Birdview to be a positive addition to their project management needs. Carri highlighted that Birdview‘s time entry feature is particularly easy to use and view, making task tracking and time logging straightforward.

Thomas C., a civil engineer from a plastics company with over 10,001 employees, found Birdview to be an effective and user-friendly tool for project management. Thomas appreciated that Birdview allowed him to consolidate all project-related tasks and information in one place, eliminating the need to switch between multiple applications. He highlighted Birdview’s comprehensive functionality as a key advantage, stating that it replaced several other tools he previously used.

Try Birdview PSA For Free

If you feel that Birdview PSA might be the right resource management tool for your business, sign up to start using Birdview PSA for a 14-day trial or book a demo. If you need any help with your Birdview PSA subscription or want to better understand our pricing, please navigate to our support center here.

Top 7 strategies to help underutilized employees

To address underutilized employees, it’s important to implement strategies that help them fully realize their potential and contribute meaningfully to the business.

1. Encourage skill development and training to promote continuous learning and growth

Make continuous learning a priority.

You should push employees to take part in training programs and expand their skills. When employees build new competencies, they feel more valued and engaged. This directly impacts how well they contribute to the company.

Focus on offering impactful upskilling programs that align with both their aspirations and the company‘s needs.

Let your team explore different areas, whether it’s leadership, technical skills, or specialized areas. You‘ll quickly see their increased confidence and productivity.

2. Redefine job roles and responsibilities to match employees‘ strengths and interests

Take a look at how roles are defined in your business.

If employees aren’t reaching their full potential, reassess their responsibilities. This shift might involve reshuffling tasks or even rotating roles among employees.

Small businesses can make this work by being flexible. When you match employees with tasks that fit their talents or interests, they perform better and feel more fulfilled.

Don‘t just settle for the role they‘ve been stuck in–find out where they shine and help them grow in that direction.

3. Offer new challenges to employees to help them grow and expand their capabilities

Push your employees outside their comfort zones. Give them tasks that stretch their current abilities but aren’t so overwhelming they cause frustration.

The right challenge encourages employees to grow and prove themselves. It‘s a way to show that you trust their abilities and want them to push their limits.

If they succeed, you‘ll see them thrive, and their sense of value will skyrocket.

4. Give employees the chance to teach others and showcase their expertise

When employees share their expertise, it benefits everyone. Offer them opportunities to teach their colleagues what they know.

Whether it‘s through workshops, team presentations, or mentoring, this move not only reinforces their knowledge but also builds confidence.

Seeing someone explain concepts or skills to others brings out their leadership qualities, which is often a hidden strength.

Encourage your team to pass on their knowledge. It strengthens the overall team and helps employees feel more respected and recognized.

5. Provide mentorship opportunities to help employees build leadership skills

Mentorship programs are a direct route to unlocking hidden potential. Let employees who are ready to step into leadership roles mentor others. This offers them a platform to develop new skills, gain experience, and build relationships.

Allowing employees to mentor helps them see their strengths from a different angle and supports a positive, growth-focused culture within your business.

6. Promote open communication to promote a culture of transparency and engagement

Encourage a culture of transparency and dialogue.

Open communication channels allow employees to voice their concerns, ideas, and frustrations. By making them feel heard, you‘ll see employees step up and take initiative.

Actively listen to what they have to say, and ask them how they‘d like to grow. Show that you care about their professional journey and want to help them succeed.

When employees know they can speak up, they‘ll contribute in ways you might not expect.

7. Support employee development through HR‘s role in bridging gaps between leadership and team members

HR plays an important role in connecting employees‘ needs with leadership goals.

They are the bridge between what‘s happening at the ground level and the strategic objectives of the business.

HR can identify where underutilization happens and propose solutions that can boost employee engagement.

Practical tips for HR professionals to identify and address underutilization

Action Item	Description
Regular Employee Feedback	HR should gather feedback from employees to identify gaps in job satisfaction and skill usage.
Skills Assessment	Use assessments to evaluate whether employees are being fully utilized in their roles or if their skills could be better leveraged.
Role Reevaluation	HR can initiate periodic role evaluations to check if employees are in roles that match their skills and aspirations.
Employee Career Development Plans	Work with employees to create customized career paths, focusing on areas they want to grow and develop.
Cross-Department Collaboration	Encourage collaboration between departments to spot untapped skills and offer employees more varied opportunities.
Leadership Training	HR should offer training programs to equip managers with the tools to recognize and nurture hidden talents.

By taking these actions, HR helps not just the business, but also the employees thrive.

Recognizing and addressing underutilization is about more than improving performance–it‘s about building a more engaged and motivated workforce.

What is the impact of underutilized employees?

When employees aren‘t used to their full potential, it‘s not just a waste of talent – it‘s a drain on your business. They‘re not just sitting around doing nothing. They‘re likely feeling bored, disengaged, and unmotivated.

That kind of energy can spread fast and drag the whole team down.

You‘ll notice them not speaking up in meetings, missing chances to pitch new ideas, and doing just enough to get by.

If you want your business to succeed, you‘ve got to make sure everyone is fully engaged. You don‘t want anyone feeling like their skills are going to waste.

How resource underutilization affects employee morale and engagement?

When people aren‘t challenged, they start to feel unimportant. They know they can do more, but no one‘s asking them to.

It‘s frustrating, and after a while, that frustration builds up. Their enthusiasm fades. Instead of getting excited about their work, they feel stuck.

When employees feel like they matter, they‘re more motivated to stick around and give it their all. You need to give them work that stretches their abilities. That‘s how you keep them engaged.

Risk	Over-Utilization	Under-Utilization
Burnout	High risk	Low risk
Productivity	Declines over time	Generally low
Creativity	Reduced	Stagnant
Error Rates	Increases	Low, but leads to disengagement
Employee Morale	Decreases	Decreases

What is the link between underutilization and frustration?

Underutilized employees don‘t just get bored – they get frustrated. They want to contribute, but they‘re not given the chance.

Over time, that frustration can make them feel like they‘re just going through the motions. They lose interest in what they‘re doing. Eventually, they might even burn out.

To avoid that, check in regularly with their workload. Give them projects that push their limits. Challenge them.

Why resource underutilization leads to high turnover?

When employees feel like they‘re not being used right, they start looking for jobs where their talents are appreciated. If you don‘t give them the chance to grow, someone else will.

They‘ll leave, and you‘ll lose more than just a worker.

You‘ll face the cost of recruiting and training someone new. It‘s a vicious cycle. Keep your employees engaged, and they‘re more likely to stay. When you don‘t, turnover rates will climb.

Over-utilization vs. underutilization: finding the right balance

Employees who are neither overworked nor underused are more productive and engaged. They have the time to focus, be creative, and bring fresh ideas to the table.

At the same time, they aren‘t bogged down by the stress of excessive tasks. It creates a happier workforce and a more productive organization.

Regular check-ins, fair delegation, and adjusting workloads to employees‘ strengths will keep things balanced. When both sides are satisfied, the company runs more smoothly and employees feel more fulfilled.

Frequently Asked Questions (FAQs)

What are the potential causes of underutilizing resources in professional services firms and teams?

Underutilization happens when resources, like employees or skills, aren’t fully engaged. This can occur due to poor planning, mismatched workloads, or lack of communication.

If firms don‘t assess capacity or skills regularly, it leads to talent sitting idle. Inefficient project management or unclear role definitions also contribute to the problem. Simply put, when resources aren’t aligned with the right tasks, they go underused.

How does the underutilization of resources affect the performance of professional services firms and teams?

Underutilization drains productivity and profits. It creates wasted potential, leaving talent underdeveloped. When team members don‘t have enough to do, morale dips, and work becomes slower.

Clients may notice delays or reduced quality. Plus, when resources aren‘t fully tapped, firms miss out on maximizing their potential output, which hurts growth and success.

How can professional services firms and teams identify underutilization of resources?

Track workload and performance metrics closely. If employees or teams consistently have low utilization rates or their tasks seem too easy, it’s time to act. Monitor if employees have downtime or lack challenges.

Conduct regular check-ins and surveys to gauge satisfaction and understand if employees feel underutilized. Listening to feedback directly shows where resources aren‘t being fully tapped.

What strategies can professional services firms and teams implement to address the underutilization of resources?

Start by redistributing tasks across teams. Ensure each person has enough work that aligns with their skills. Cross-train employees to broaden their abilities. Use project management tools to keep track of assignments and capacity.

Consider implementing flexible staffing models or outsourcing to fill gaps when needed. Regularly reassess workloads to avoid future underutilization.

How can technology help mitigate the underutilization of resources in professional services firms and teams?

Use professional services automation (PSA) software to assign and track tasks more effectively. Automation tools can free up time for employees by handling repetitive tasks. Resource planning software helps visualize workloads and capacities, preventing overloading or underloading.

Additionally, technology aids in communication and collaboration, making sure resources are allocated where they‘re most needed.

Conclusion

Let’s recap. To tackle employee underutilization head-on, organizations need to pinpoint skill gaps, offer targeted development, and build a culture of open communication and feedback. It’s that simple.

Remember, addressing underutilization isn’t just about keeping employees happy and engaged–it’s about supercharging productivity, innovation, and overall success. It’s a win-win.

HR professionals, team managers, and business leaders, it’s time to take a closer look at your teams.

How are you utilizing your talent?

Are you maximizing their potential?

If not, implement these strategies today.

Tools like Birdview PSA software can help streamline the process.

Remember, unlocking the full potential of your workforce starts with taking action.

Your organization’s future success depends on it.

 

Try Birdview PSA for free