Billable IQ
Employee utilization and productivity tracking
Overview
The Billable IQ dashboard tracks how your team's time is spent, focusing on the balance between billable and non-billable hours. For service businesses, utilization is often the most important driver of profitability.
ℹ️ Note: This dashboard requires Time Tracking to be enabled in NetSuite. Without time entries, no data will appear.
What Is Utilization?
Utilization measures what percentage of available time is spent on billable work:
Utilization Rate = Billable Hours ÷ Total Hours Worked × 100
Example:
40 hours worked
28 hours billable
Utilization = 28 ÷ 40 = 70%
A 70% utilization means for every hour worked, 42 minutes are billable and 18 minutes are non-billable.
Key Metrics
Header Metrics
| Metric | Description |
|---|---|
| Total Hours | All hours logged in the period |
| Billable Hours | Hours that can be billed to clients |
| Non-Billable Hours | Hours that cannot be billed |
| Utilization Rate | Percentage of time that's billable |
| Non-Billable Cost | Labor cost of non-billable hours |
| Cost Per Non-Billable Day | Average daily non-billable labor cost |
Status Indicators
| Utilization | Status | Meaning |
|---|---|---|
| 75%+ | Green | Excellent utilization |
| 60-75% | Yellow | Acceptable, room for improvement |
| Below 60% | Red | Low utilization, investigate |
Your target is configurable in Settings.
Dashboard Sections
Utilization Overview
Gauge chart showing company-wide utilization:
- Current period utilization
- Comparison to target
- Trend arrow (improving/declining)
Department Breakdown
Table showing utilization by department:
| Column | Description |
|---|---|
| Department | Department name |
| Employees | Headcount |
| Total Hours | Hours logged |
| Billable Hours | Billable portion |
| Utilization | Percentage |
| vs. Target | Above/below target |
Click any department to drill into employee details.
Department Heatmap
Visual representation of utilization across departments:
- Dark green — High utilization
- Light green — Meeting target
- Yellow — Below target
- Red — Significantly below target
Employee Detail
When you drill into a department:
- Individual employee utilization
- Time breakdown by project/client
- Sparkline showing recent trend
- Comparison to personal target
Service Item Profitability
See how different service types perform:
- Hours by service item
- Revenue per service
- Effective rate (revenue ÷ hours)
- Contribution margin
Cost Spike Detection
Automatic alerts when non-billable costs increase:
- Which employees or departments
- Magnitude of the spike
- Time period of occurrence
How Time Is Classified
Billable Time
Time entries marked as billable in NetSuite:
- Client project work
- Billable meetings
- Billable travel
- Any time included on invoices
Non-Billable Time
Everything else:
- Internal meetings
- Training and professional development
- Administrative tasks
- Sales and business development
- Non-billable project phases
Excluded Time
Some time may be excluded from analysis:
- PTO and holidays
- Employees below minimum hours threshold
- Hidden employees or departments
Reading the Data
Healthy Patterns
- Consistent utilization week to week
- Most employees near or above target
- Non-billable hours concentrated in specific categories (training, BD)
- Seasonal patterns explained by business cycles
Warning Signs
- Declining utilization trend
- Wide variance between employees
- High non-billable hours without clear purpose
- Cost spikes without explanation
Using the Dashboard
Daily/Weekly
- Check overall utilization trend
- Identify employees with unusually low utilization
- Review any cost spike alerts
- Confirm time is being logged
Monthly
- Analyze department-by-department performance
- Compare to targets
- Review service item profitability
- Adjust staffing or assignments if needed
Quarterly
- Review utilization trends over time
- Assess department targets (are they realistic?)
- Analyze non-billable time categories
- Plan hiring or reallocation
Configuration Options
Access via Settings → Billable IQ:
| Setting | Purpose | Default |
|---|---|---|
| Target Billable % | Your utilization goal | 70% |
| Cost Spike Threshold | Alert on non-billable cost increase | 25% |
| Minimum Hours | Ignore employees with fewer hours | 20 |
| Labor Cost Field | Where to find labor cost | Auto-detected |
| Hidden Employees | Exclude specific people | None |
| Hidden Departments | Exclude departments | None |
| Employee Types | Filter by employee type | All |
Setting Realistic Targets
| Business Type | Typical Target |
|---|---|
| Consulting | 65-75% |
| Professional Services | 60-70% |
| Agency | 55-65% |
| Hybrid (products + services) | 50-60% |
Remember: 100% utilization is not achievable or healthy. Allow time for training, meetings, and business development.
Understanding Non-Billable Time
Not all non-billable time is bad. Categories include:
Necessary Non-Billable
- Staff meetings
- Training and development
- Business development/sales
- Company events
Concerning Non-Billable
- Waiting for client decisions
- Rework and corrections
- Unutilized capacity
- Excessive administration
Track non-billable categories to distinguish healthy investment from waste.
Best Practices
Set Clear Expectations
Employees should know their utilization targets and how they're measured.
Track Time Consistently
Data is only as good as time entry compliance. Encourage prompt, accurate logging.
Analyze Trends, Not Snapshots
Weekly utilization fluctuates. Look at rolling averages and monthly trends.
Connect to Revenue
High utilization only matters if the work is profitable. Check effective rates.
Balance Utilization and Growth
Some non-billable time (BD, training) is essential for long-term success.
Common Questions
Why is my utilization lower than expected?
Common causes:
- Time not being logged (compliance issue)
- Heavy training or onboarding period
- Between-project gaps
- High administrative burden
What's a good target for new employees?
New employees typically have lower utilization (training, ramp-up). Consider 50-60% for the first 3 months.
How do I handle part-time employees?
Gantry uses hours logged, so part-time employees can have the same utilization percentage as full-time.
Why exclude employees with few hours?
Employees with very few hours (vacations, new hires) can skew statistics. The minimum threshold ensures meaningful data.
Related Dashboards
- True Cost — How utilization affects burden rates
- Profitability — Revenue per billable hour
- Liquidity — Cash impact of utilization