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Glossary · Term 002

Utilization

Utilization is the share of an employee's available work time charged to client projects. Firms define available hours and treatment of leave differently, so comparisons require a consistent formula. Utilization can be measured for individuals, teams, or the whole firm, and it does not by itself show whether project work is profitable.

Why it matters for owners

Utilization helps reveal capacity and workload patterns, but should be considered with quality, project margins, and staff wellbeing.

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