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Utilisation

The proportion of available time actually spent on chargeable or productive work.

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

What it means

Utilisation is productive hours divided by available hours. Chargeable utilisation counts only the hours a customer pays for.

Why it matters

In a people business it is the central economic metric: revenue is roughly rate times chargeable hours, so a few percentage points of utilisation is the difference between profit and loss.

What it looks like in practice

Realistic targets are well below 100%. Sustained high utilisation leaves no capacity for sales, training, holiday or the unexpected, and it produces burnout and errors.

What to watch out for

Chasing utilisation by counting things as chargeable that the customer will not pay for. The invoice, not the timesheet, is the test.

Where to get proper advice

Your own timesheet data and your invoiced hours side by side. The gap is where the money goes.

Where to read more

Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28

Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.

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