Your employee utilization rate is the percent of time available for work that an employee works. It is one of the most powerful tools you have to improve your agency. However, it is often misused — creating a culture that rewards long hours instead of quality work. Multiple Employee Utilization Rates. Calculating employee utilization starts by collecting data: on work, travel, holidays, time-off, bench time, and more — learn more. This information creates employee utilization rates that reflect reality, and allows for multiple views of employee utilization. Calculating Employee Utilization Rates. The resource utilization rate is the balance relationship between billable hours and working hours available and is a key metric of employee productivity. For example, if there are 168 eligible working hours in the month of May and Penny spends 100.80 hours on billable client projects then Penny’s utilization rate is 60%. The numerator of the utilization rate is the actual number of hours of work by the professional in question that was billed to clients in a given period. Billing periods can be a week, a month, a calendar year, or a fiscal year.
Capacity Utilization Rate in professional services is the percentage of time spent on billable projects vs. the total time worked, in other words, it measures how busy employees are. Why utilization is an important metric Higher Utilization Rate = Higher Revenue. Employee utilization is a key measure of both corporate and individual employee productivity and efficiency. Increases in the utilization rate usually translate into increases in company revenue. Tracking the utilization rate can also alert you to slippages in productivity so you can take action quickly. A recent AEC industry study pegged employee utilization rates--defined as the percentage of billable hours out of total hours worked--at around 59 percent, a grim reminder that the average business is losing around 40 percent of its worker productivity to non-billable activities. By definition, the utilization % is the percent of time a resource worked compared to the total available hours the resource could work. Most professional services organizations use 2080 hours as the traditional number for Total Available Hours (where 2080 = standard 40 hours per week * 52 weeks in the year).
The employee’s utilization rate is calculated as: 25 / 40 = 62.5 percent. This number shows that the employee is utilizing 62.5 percent of his potential time to make the firm money. In business, the utilization rate is an important number for firms that charge their time to clients and for those that need to maximize the productive time of their employees. It can reflect the billing efficiency or the overall productive use of an individual or a firm. For instance, HubSpot found some agencies aim to target an 85 to 90 percent utilization rate, however the actual average utilization rate is much lower at 60 percent. Rates vary by type of organization, role, business goals and individual job functions. Your employee utilization rate tells you how your employees are spending their time. Who is busy, who is free, and what percentage of time is being billed to clients. It is the key to improving your profitability, financial management, project management, business development, specialization, and talent development. Your employee utilization rate is the percent of time available for work that an employee works. It is one of the most powerful tools you have to improve your agency. However, it is often misused — creating a culture that rewards long hours instead of quality work. Multiple Employee Utilization Rates. Calculating employee utilization starts by collecting data: on work, travel, holidays, time-off, bench time, and more — learn more. This information creates employee utilization rates that reflect reality, and allows for multiple views of employee utilization. Calculating Employee Utilization Rates. The resource utilization rate is the balance relationship between billable hours and working hours available and is a key metric of employee productivity. For example, if there are 168 eligible working hours in the month of May and Penny spends 100.80 hours on billable client projects then Penny’s utilization rate is 60%.
Your employee utilization rate tells you how your employees are spending their time. Who is busy, who is free, and what percentage of time is being billed to clients. It is the key to improving your profitability, financial management, project management, business development, specialization, and talent development. Your employee utilization rate is the percent of time available for work that an employee works. It is one of the most powerful tools you have to improve your agency. However, it is often misused — creating a culture that rewards long hours instead of quality work.
13 Apr 2016 Employee utilization is a key measure of both corporate and individual employee productivity and efficiency. Increases in the utilization rate 2 Jul 2019 We are trying to benchmark to “common” utilization rates, so I am looking support for utilization rates at multiple levels for staff, manager, Sr. Improving your utilization rates results in revenue growth, an increased ROI for employee wages, and even increased customer satisfaction through better ticket In a study of 154 Canadian EAPs, 102 organizations reported their utilization rates along with how they defined both utilization and a case. Mean utilization rate 24 May 2018 The employee utilization rate is one of a handful of key performance indicators ( KPIs) used by A&E firms to measure the ability of the firm to Density: Density provides a more precise occupancy calculation. Take the number of employees multiplied by an average 125-250 square feet per employee. The