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We don’t measure or talk about utilization.
They don’t factor out PTO and holidays in possible billable hours? Accenture does that to calculate chargeability.
Can you bill more than 8 hours per day? If yes, I think 80% is reasonable.
To follow up- given the size of the firm (less than 10 consultants), there are a lot of non-billable activities we are all expected to pitch in on (recruiting, IP development, etc.). Corporate holidays are sparse but we have unlimited PTO, but the utilization formula heavily penalizes you for those activities. Deal flow is also variable as we develop a more robust pipeline for future engagements. I would like to have a conversation with the boss as to why I think the current formula needs modifications moving forward unless they intentionally plan on not giving out bonuses.
This smacks of a scam. A: penalization for IP development etc while not accounting for reasonable PTOs/ training time etc. for utilization calculation. B: unlimited PTOs are an established scam in consulting to avoid liability for paying off unused vacation at the time of leaving. Your firm is, very knowingly, avoiding bonus and vacation payouts. Any firm that nickels and dimes it’s employees is not worth it. I doubt talking to your boss will be fruitful. But if it does, I stand corrected on my reading.
It’s all relative and in a small firm your contribution should be clear
If you assume 4 weeks for pto and 2 weeks for holiday plus a little training, you will be at 88% for the year if you are 100% chargeable the remaining time. The 80% mark seems tough to hit unless you can bill more than 8 hours per day.