Calculating technician utilization: what counts and what does not
How do you calculate a technician's utilization rate? The formula, what counts and what does not, and a worked example with fictional numbers.
In this article
Short answer
A technician's utilization rate is the share of their available hours spent productively: productive hours divided by available hours, times 100. Leave holiday and sick leave out of the denominator. Travel, preparation and admin count only if you decide so up front, so write your definition down.
By the makers of stiptUpdated July 16, 20266 min read
What is a technician's utilization rate?
The utilization rate says how much of the time a technician is available is actually spent on work that earns something. It is a fraction with a numerator (productive hours) and a denominator (available hours).
There is no fixed or legal definition. One business counts only hours at the customer, another includes travel time, a third looks only at hours that get invoiced. All three can be defended, as long as you always measure the same thing. Switch definitions halfway and you are comparing apples with oranges.
A few terms in a row. Productive hours are hours spent directly on customer work. Billable hours are hours you can charge to the customer. Available hours are contracted hours minus holiday, sick leave and public holidays.
How to work it out, in five steps.
- 1Available hours
Contracted hours for the period, minus holiday, sick leave and public holidays. Training days come out too, unless you deliberately want them to count as unproductive.
- 2Split the hours
Divide the hours worked into types: at the customer, travel, preparation, admin and other.
- 3Choose the numerator
Decide which types go in the numerator and write it down.
- 4Divide
Productive hours divided by available hours, times 100. That is the percentage.
- 5Look over time
A single day says little. Take a week or a month and look at the trend.
What counts where?
| Type of time | In the numerator (productive)? | In the denominator (available)? |
|---|---|---|
| Work at the customer | Yes | Yes |
| Travel between addresses | Your choice | Yes |
| Preparation: loading materials, checking the route | Your choice | Yes |
| Admin and filling in the work order | Your choice | Yes |
| Holiday, sick leave, public holidays | No | No, take it out |
| Training and meetings | Usually not | Your choice |
Travel time is the biggest grey area. Track it separately in any case, because it tells you the most about your scheduling.
What does that look like in a worked example?
Suppose a technician has a 40-hour contract and takes a day of holiday. Their available hours are then 32. They work 32 hours that week: 20 at customers, 7 travelling, 2 on preparation and 3 on admin. Of the 20 hours at customers, 18 are invoiced, because 2 hours were a repeat visit with no invoice.
These numbers are made up to show the mechanism. They say nothing about what is typical in the trade. What you count as productive decides the outcome:
The same week, four outcomes
| What you count | Productive hours | Utilization rate |
|---|---|---|
| Only hours at the customer | 20 | 20 / 32 = 62.5% |
| Plus travel | 27 | 27 / 32 = 84.4% |
| Plus travel and preparation | 29 | 29 / 32 = 90.6% |
| Only invoiced hours (billable) | 18 | 18 / 32 = 56.3% |
All numbers in this example are made up and are not industry figures.
What percentage is good?
The same week produces a utilization rate between 56 and 91 percent. That is why the definition matters more than the number.
There is no percentage that is right for every business. A business doing installations at fixed addresses drives differently from one handling breakdowns across the whole region. And one hundred percent means there is no room for overruns, urgent jobs or a customer who is not home. So compare with yourself: same definition, same period, per type of work. A rising line on a constant definition says more than any figure from an article.
Watch the other side too. A rate that stays high structurally can point to overtime or to a schedule with no buffer.
Where does utilization leak away?
Addresses far apart cost hours that nobody invoices.
An appointment that falls through or overruns leaves a gap nobody fills.
Fetching or hunting for materials because they were not on the van.
Filling in work orders afterwards or retyping them at the office.
A second trip because a part was missing or the job was not finished.
For the customer, for access or for a colleague who is still busy.
How does scheduling raise utilization?
Utilization looks like a technician problem, but it is largely decided at the office, when scheduling. Three things matter most: clustering work by area so travel time drops, filling gaps in the day, and only scheduling jobs with technicians who can actually do the work, so there is no repeat visit.
In the stipt calendar every technician or crew has a row of their own with working hours, days off and blocked time, and you can show the travel time between appointments. The slots a customer is offered are calculated on availability and travel time, and on skills and work area if you switch those on per appointment type. And the technician fills in the work order on site, so it does not have to be filled in or retyped in the evening.
If your software does not calculate utilization for you, a spreadsheet is enough. You only need four columns: available hours, hours at the customer, travel and other.
Frequently asked questions
What is the difference between utilization and productivity?
Utilization measures how much of the available time is productive. Productivity is about what that time yields, such as revenue or work per hour. A technician can be highly utilized and still yield little if the hours go to low-margin work.
Do travel and preparation count as productive hours?
That is your call. If you charge travel to the customer, it is billable and you can count it. If not, track it separately so you can follow it. What matters is that you fix the choice and do not switch.
What are billable hours?
Billable hours are the hours you can charge to the customer. If you do not invoice repeat visits, warranty work and admin, there are fewer of them than the hours a technician works. The gap with productive hours shows how much you work for free.
How often do you calculate utilization?
Weekly is a good rhythm. Daily it swings too much and quarterly you are too late to adjust. Look at the trend per type of work every month.
Should utilization be 100 percent?
No. One hundred percent means no room for urgent jobs, overruns or a customer who is not home. Deliberately leaving part of the time empty is a choice, not a loss. The right level depends on your own numbers.
Read more
More articles. On software and processes in the installation trade.
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