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Workforce Glossary Term

Utilisation Rate

The percentage of available hours that crews or equipment are actively billable to a client. A low utilisation rate signals idle resources eating into margins. Subcontractors track this metric to assess workforce efficiency and bid competitiveness.

Related Terms

Floater

Workforce

A skilled tradesperson or technician not assigned to a fixed crew or project, deployed where needed on short notice. Subcontractors often bill floaters at a premium rate due to their flexibility and quick availability.

Nonemployer Establishment

Workforce

A business that generates revenue but has no paid employees — typically a sole proprietor or owner-operator. Many field subcontractors and independent tradespeople operate this way. Statistics Canada tracks these firms separately in labour and industry data.

Utilisation

Workforce

The percentage of time your crew or equipment is actively deployed on billable work. Low utilisation means idle resources eating into your margins. Subcontractors track this closely to assess profitability and plan workforce levels.

Labour Burden Rate

Workforce

The total cost of employing a field worker beyond their base wage, expressed as a percentage. It includes CPP (Canada Pension Plan), EI (Employment Insurance), WCB (Workers' Compensation Board) premiums, and benefits. Subcontractors must factor this rate into crew pricing to avoid underbidding contracts.

Crew Utilization

Workforce

The percentage of available crew hours that are billable or actively deployed on a job. Low utilisation means workers are on standby or idle, cutting into margins. Subcontractors track this metric to assess workforce efficiency and bid future projects accurately.

SJT (Situational Judgment Test)

Workforce

A pre-hire assessment used to evaluate how candidates respond to realistic workplace scenarios. Operators and prime contractors use SJTs to screen field workers for safety judgement and decision-making. Subcontractors may encounter these tests when onboarding crews for client-managed worksites.

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