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With this method, however, it's easy to see how this utilization rate can be gamed: if a business stops [[Record|recording]] non-billable time, its utilization rate will always be 100%.
The second way to [[Calculation|calculate]] the utilization rate is to take the number of billable hours and divide by a fixed number of hours per week. For example, if 32 hours of billable time are recorded in a fixed 40-hour week, the utilization rate would then be 32 / 40 = 80%.
Note that with this second method it is possible to have a utilization rate that exceeds 100%. If 50 hours of billable time are recorded in a fixed 40-hour week, then the utilization rate would be 50 / 40 = 125%.
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Another consideration is the in-/exclusion of absent hours, e.g. leave or illness. Common practice is to exclude these from utilization calculations.
Differences in how utilization is measured can also drive different behaviors, and some [[Organization|organizations]] may employ multiple utilization measures. For instance, an independent professional services or consulting firm may rely solely on billable utilization. An organization that sells products as well as [[implementation]] or support services may utilize the notion of "[[productive]]" utilization, which also measures and rewards time on activities like product development that are important, but which may not be billed directly to a client.{{cn|date=November 2017}}
==References==
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