Utilization rate

Utilization rate measures how much of a person's or team's available capacity is going to productive work. The standard formula is billable or productive hours divided by available hours, expressed as a percentage. Many service organizations report it weekly or monthly per person, per practice and per department. It is one of the most-watched indicators of staffing health.

Target utilization varies by role and industry. Consulting firms commonly aim for 70 to 85 percent on billable consultants, while creative agencies often run lower targets that account for pitch work, internal projects and learning time. Reporting "actual" utilization next to "target" utilization makes drift visible early enough to act on.

Related: fte, bench time, billing rate.