Harvest
Time Tracking
Sign up free

Calculate Employee Utilization

Maximize your team's potential with Harvest, the leading tool for calculating employee utilization rates and enhancing productivity.

Try Harvest Free

How much revenue is your team leaving on the table?

Most agencies run at 55-60% utilization. Even a small improvement means significant revenue. See what closing the gap looks like for your team.

Number of people who track billable time
$
Blended rate across roles (junior, senior, lead)
55%
Percentage of total hours that are billable. Industry average is 55-60%.
75%
A realistic target for service businesses is 70-80%.
Monthly revenue gap $0
Revenue at current utilization $0/mo
Revenue at target utilization $0/mo
Extra billable hours needed per person/day 0h
Annual revenue opportunity $0

Start tracking team utilization

Walk through the entire flow below. Start a timer, check your reports, and create a real invoice — all in three clicks.

Go ahead — start tracking!

One click and you're timing. Try it right here: start a timer, add an entry, edit the details. This is exactly how it feels in Harvest.

  • One-click timer from browser, desktop & mobile
  • Works inside Jira, Asana, Trello, GitHub & 50+ tools
  • Duration or start/end — your call
  • Day, week & calendar views to stay on top of it all
  • Friendly reminders so no hour gets left behind
Acme Corp
Website Redesign
Homepage layout revisions
1:24:09
Content Strategy
Blog calendar planning
1:30:00
SEO Audit
Technical audit report
0:45:00
Brand Guidelines
Color system documentation
2:15:00
Logo Concepts
Initial sketches round 1
1:00:00
Today's total 6:54:09

Understanding Employee Utilization Rates

Employee utilization rates are a key metric for assessing how effectively a team is using its available working hours. This rate indicates the percentage of an employee’s work time that is spent on billable tasks, directly contributing to revenue. For instance, if an employee works 40 hours a week and 32 of those hours are billable, their utilization rate would be 80%. A good utilization rate is typically around 75-85%, allowing for some non-billable activities that support business objectives, like training or strategic planning.

Factors influencing utilization rates include project types, employee roles, and workload distribution. For example, managerial roles often have lower utilization rates due to their involvement in non-billable activities like planning and team management. Understanding these dynamics is crucial for improving efficiency. Harvest helps organizations track these variables with precision, providing insights into how different roles and tasks affect overall productivity.

Calculating and Improving Employee Utilization

To calculate employee utilization, divide the billable hours by total available hours, then multiply by 100 to get a percentage. For example, if a team member has 30 billable hours out of a 40-hour workweek, their utilization rate is 75%. Achieving the right balance between billable and non-billable hours is essential for preventing burnout and maintaining productivity, and this is where Harvest excels.

Harvest not only tracks time but also helps forecast utilization rates through its detailed reporting features. By analyzing time spent on various projects and tasks, managers can identify areas for improvement and optimize resource allocation. This strategic insight supports decisions that enhance team productivity and increase profitability.

Leveraging Harvest for Strategic HR Planning

Tracking employee utilization is vital for strategic human resource planning. A detailed analysis of how time is allocated across projects and roles can reveal insights into workforce efficiency and potential areas for development. Harvest provides comprehensive reports that assist HR teams in making informed decisions about hiring, training, and resource allocation.

Utilization data from Harvest can also inform strategic HR initiatives, such as identifying skills gaps or determining the need for additional training. By understanding the intricacies of employee utilization, organizations can enhance their HR strategies to drive overall business success.

The Role of Project Planning in Utilization Rates

Effective project planning significantly impacts employee utilization rates. Projects with clear scopes, timelines, and resource allocations help ensure that team members are working efficiently on tasks that drive business growth. Harvest's project budget features and time tracking capabilities provide managers with the tools needed to plan effectively and monitor progress.

By setting project budgets and receiving alerts as limits are approached, managers can adjust plans proactively to maintain optimal utilization rates. This level of insight and control helps prevent projects from derailing and ensures that resources are used effectively, contributing to higher overall productivity and profitability.

Maximize Utilization with Harvest

Discover how Harvest helps calculate employee utilization rates, improving team productivity and resource management.

Screenshot of Harvest's employee utilization tracking features.

Calculate Employee Utilization FAQs

  • To calculate employee utilization, divide the billable hours by total available hours and multiply by 100. For example, if an employee has 30 billable hours out of a 40-hour week, their utilization rate is 75%.

  • Factors include project type, role responsibilities, and workload distribution. Managers can use Harvest to analyze how these elements affect utilization and identify areas for improvement.

  • A good employee utilization rate ranges from 75% to 85%. This range ensures that employees are productive while allowing time for essential non-billable activities like training.

  • Harvest tracks both billable and non-billable hours, providing detailed reports that help managers analyze and optimize utilization. This insight aids in resource allocation and strategic planning.

  • Tracking utilization helps HR teams make informed decisions about workforce management, training, and hiring. Harvest's detailed reports provide the data needed for effective strategic HR planning.

  • Effective project planning ensures resources are allocated efficiently, impacting utilization rates positively. Harvest's project budgets and alerts help managers maintain optimal utilization.

  • Yes, Harvest's detailed reporting and project budget features aid in forecasting utilization rates across departments, helping managers plan strategically and optimize resource use.