Home / Glossary / Seat utilization
Cost
Seat utilization
Seat utilization is how much of a paid FTE is actually on the queue. Dedicated seats should be near a full brief, not 15 hours of work inside 40 hours of ‘presence.’
How it works
BPO vendors sell utilization as a floor metric. On a dedicated hire you want ownership, not 95% talk-time. If the brief is thin, shrink the seat or add real work. Do not invent busywork to hit a number. For a U.S. company hiring one Filipino teammate, write this into the brief, the employment contract, and the peso payroll file before the start date. Slack habits do not override the Labor Code, BIR, or NPC. If the local employer of record holds the paper, they run the statutory step; you still owe a clean operating definition so the seat does not fail in week three. Put a number on the example when you budget loaded cost, because a nameless allowance always returns as a December surprise or a missed SLA.
Example: EA brief fills 30 honest hours. You do not stretch to 40 with fake reports. Or you add research. You do not buy a second seat yet.
How it differs
Queue ownership is quality of hold. Dedicated seat is the object. BPO vs dedicated hire is why the metric differs.
Common errors
Measuring Slack green time as utilization.
In practice
Treat Seat utilization as a week-one operating object. Put a peso or dollar figure on the next twelve months. If the word cannot survive that arithmetic, it is marketing. Write an owner - founder, local employer, or worker - and a date you will look at it again: first cutoff, first holiday, or first miss. If nobody can show a contract clause, a payslip line, a calendar block, or a checklist box, you do not have seat utilization yet. You have a conversation. Convert the conversation before the person starts, while changing the deal still costs a paragraph rather than a resignation. Re-read the worked example above against the actual hire in front of you. If the numbers in that example cannot be swapped for this seat’s pesos, hours, and start date, the brief is still unfinished.