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It's a data point thats tracked but the performance conversations absolutely do not center around it at all. I know a junior who had very poor utilization on the surface (<60%) but had no issue getting promoted at the first chance - there's usually context to explain why util would be low.
Frankly, I'm not even sure why we track it as a metric because it doesn't get used much at all.
[America's perspective]
It’s used, but only an issue if there isn’t a story on why you aren’t utilized.