Employee Utilization Report

If you’re in a consulting organization, it’s important to know how many hours each employee works.  It’s also important to know if those hours are billable or non-billable.  You can likely paying employees whether they are bringing in billable hours or not.  So it’s important to maximize billable hours, if you can.

Let’s show a few extreme examples to illustrate the point.

Example #1: Pay period of 168 hours.  And only one billable hour.  Billing rate $100.

That is only 0.6% utilization, and an effective billing rate of $0.60 per scheduled hour.  You can’t live on sixty cents an hour.  🙂

Example: 2 Pay period of 168 hours.  All 168 are billable.  Billing rate $100.

That is 100% utilization (which is nearly impossible), and an effective billing rate of $100 per scheduled hour.  Pretty nice!  But also pretty unrealistic.