The first method calculates the number of billable hours divided by the number of hours recorded in a particular time period. For example, if 40 hours of time is recorded in a week but only 30 hours of that was billable, the utilization rate would then be 30 / 40 = 75%.
https://en.wikipedia.org/wiki/Utilization_rate
Note that with this second method it is possible to have a utilization rate that exceeds 100%. If 50 hours of billable time are recorded in a fixed 40-hour week, then the utilization rate would be 50 / 40 = 125%.
https://en.wikipedia.org/wiki/Utilization_rate
A more efficient way is to improve employee utilization rates. The utilization rate is a key metric of employee productivity and is the relationship between billable hours and working hours available. The more billable hours there are, the greater the potential revenue that can be generated from those hours.
http://www.acuitybusiness.com/blog/bid/123313/Increasing-Revenue-Through-Improved-Utilization-Rates
The second way to calculate the utilization rate is to take the number of billable hours and divide by a fixed number of hours per week. For example, if 32 hours of billable time are recorded in a fixed 40-hour week, the utilization rate would then be 32 / 40 = 80%.
https://en.wikipedia.org/wiki/Utilization_rate
Csiernik (2003) collected EAP utilization surveys from 102 Canadian companies and found the. average annual reported utilization rate to be 9.2%, with a range of 1% to 30%. However, not. atypically in the literature, Csiernik provided no single operational deﬁnition for utilization.
http://uofthenet.org/alliant/CSPP/FinalSpetch.pdf
This study made use of a unique. longitudinal archival data set to examine EAP utilization, the problems for which help was. sought, and the relationship of EAP utilization to absenteeism over 3 consecutive years. among all EAP-eligible (N 3,448) employees in all locations of a large national Canadian.
http://uofthenet.org/alliant/CSPP/FinalSpetch.pdf
A/E firms (not to be confused. with A&E, which refers to all design firms) are also known in the. industry as “big A, little E” firms. Of the survey participants, 67.9% were Engineering or E/A firms, 24.5%. were Architecture or A/E firms, and 7.6% were other types of design or. consulting firms, including landscape architecture, interior design and. environmental consulting. Firm size. 39.7% of participants were from small firms (1–50 employees), 49.0%.
http://www.acec.ca/source/2014/summer/pdf/DeltekClarity.pdf
For professional service firms, revenues are based primarily on two factors: (1) billing margin, which is the billable hourly rate less the employee’s hourly cost, and (2) employee utilization rates.
http://www.acuitybusiness.com/blog/bid/123313/Increasing-Revenue-Through-Improved-Utilization-Rates
Of the companies in this study, 14 reported calculating utilization rates by number of. employees (no dependents) divided by number of employees. In another study sampling Long. Island, a majority (111/129) of New York companies reported an 8%–10% EAP utilization rate. 112 SPETCH, HOWLAND, AND LOWMAN.
http://uofthenet.org/alliant/CSPP/FinalSpetch.pdf
We use the term Architecture & Engineering (A&E) to refer to all. Architecture, Engineering and allied design firms included in the study. We also break out two broad segments for comparison: Engineering (E) or Engineering/Architecture (E/A) firms are either.
http://www.acec.ca/source/2014/summer/pdf/DeltekClarity.pdf
average employee utilization rates
The utilization rate is a key metric of employee productivity and is the relationship between billable hours and working hours available.