This is a dumb question but what exactly is the utilization formula? Are there any other metrics I need to be aware of? Are there goals/standards attached to these?

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Man if you can figure out that damn formula let me know. I’ve asked and asked and no one can give be a straight answer. My CA just says “I have no idea but as long as you are getting your work done and people are happy with your work, it’s not that big of a deal”. I look more at charge hour metrics and making sure I’m on pace. I would ask your CA for your charge hour goal.

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Not a dumb question at all.

Just to lighten the thread, I have been in meetings where people debate the best way to compute utilization. This is brain damage. I dont know why people seek the need to make things complicated. It leads to frustration for many and leads to people at levels being confused (hence a post like this).

Personally, I would compute it as charge hours divided by hours available to be charge (which would be 2080 on an annual basis). I would set the utilization target taking into account that people have PTO, CPE and other non chargeable hours.

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They asked for the formula.

See response below from EY1.

At my firm the numerator is your chargeable hours and the denominator is (40 hours - excluded leave (sick/PTO))

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Chargeable hours ÷ (Standard Hours to Date - Holiday - Lost Time) = YTD utilization

Standard hours to date = 40 hours a week

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Most RSM internal reports miscalculate utilization as it looks at charge hours vs total hours worked less PTO. So if you bill 40 charge and 10 admin it looks like 80%.

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I hate that RSM obscures things like this. Same thing with the bonus percentage. Just be transparent and make it easy to follow.

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Yeah supposedly we are supposed to know the target % before busy season

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Thanks everyone

Essentially it is your scheduled hours (or actual, depending on which version of “utilization” you mean - scheduled or actual) divided by available workday hours (@ 8 hours per day). If you schedule your PTO, that will be included in the scheduled utilization, but you need to back it out of the available hours for actual.

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Team is already talking about eating hours. My utilization is down cause I was in unassigned for a month in Dec/Jan. What's worse pissing off the partner or having a low utilization? -staff 1

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