Calculation
Utilisation Rate = Billable Hours ÷ Available Hours × 100
Available hours represent actual attendance hours after deducting statutory annual leave (minimum 5.6 weeks under the Working Time Regulations 1998), sick leave, and bank holidays — not the baseline contractual target hours. Failing to adjust the denominator will mistakenly measure statutory employee absence as lost utilisation.
Realistic Target Values
| Role | Typical Target Corridor |
|---|---|
| Project team member without management responsibilities | 75–85% |
| Project Manager / Lead | 55–70% |
| Technical Lead, Sales / Business Development share | 40–55% |
| Executive Management / C-Suite | Below 30% |
Applying a flat target across all roles results in either employee burnout or a false sense of security.
Why 100 Per Cent Is the Wrong Target
Full 100% utilisation leaves no room for proposal preparation, continuing professional development (CPD) and training, internal team alignment, or buffer for project delays. Teams operating continuously above 90% risk breaching the 48-hour average weekly limit under the Working Time Regulations 1998 and lose the agility to take on urgent, short-notice client instructions — which are often the most profitable opportunities.
Common Misinterpretations
High utilisation says nothing about profitability: logging numerous hours at an unprofitable charge-out rate is worse than billing fewer hours at the right rate. For this reason, utilisation metrics must always be evaluated alongside the contribution margin per hour and recovery rates.
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