In some firms, managers review this report with the individual employees so that they can set target utilization rates for themselves. Recent industry studies have shown typical gross chargeable rates to be in the range of 60 to 65 percent. For most firms, it is difficult without overtime for your technical staff to achieve chargeable rates greater than 88 percent due to vacation, sick leave and holiday time off. Principals normally average about 50 percent chargeable while project managers typically have rates of 60 to 70 percent. As mentioned earlier, review actual rates with staff members and ask them to set higher targets.
Collect time sheets weekly or daily.
This process will improve the accuracy of the information collected. Collecting time sheets every two weeks or monthly allows chargeable project time to slip through. Have all time sheets reviewed and approved by the project manager. Incorrect charges often are a result of employee uncertainty as to which project they should charge. Educate your staff.