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Technician Billable Utilization

The percentage of a technician's available working hours logged against client work.

People

Formula

Client hours logged ÷ Available hours × 100

Why Track It

Utilization shows whether the team is sized to the work. Low utilization means payroll ahead of revenue; very high utilization means the next resignation is coming.

How It Is Measured

For each technician, divide hours logged against client tickets, agreements and projects by available hours (scheduled hours minus paid time off and holidays). Internal meetings, training and administrative time are non-billable. Report per technician and for the team. Source: PSA time entries, with available hours from the schedule or HRIS.

Constraints

Under flat-fee agreements billable time is not billed time, so high utilization on an underpriced agreement still loses money. Read it beside effective hourly rate.

Measurement Note

Bennett Financials puts average MSPs at 55% to 60%, good operators at 65% to 70%, top performers at 75% to 80%, and calls anything above 85% burnout risk. Adam Hannemann targets 6.5 billable hours a day, about 75% after time off.

Referenced In

Glossary and Answers

More in People

How productive, stable and engaged the team is. These numbers show whether the MSP has the right headcount and whether it is burning out the people who deliver the service.

All KPIs
Sources2
  1. Bennett Financials: MSP Labor Utilization, the 65% Rulebennettfinancials.com
  2. Adam Hannemann: Gross Margin, the One Metric Every MSP Needsadamhannemann.com

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