Skip to main content

Calculate Utilization with Standard Hours Formula

Learn more about how to setup this formula for your organization

K
Written by Katarina Dakic
Updated over 2 weeks ago

Standard Hours formula is the best option for organizations that set a required number of work hours per day while allowing flexibility in when those hours are completed.

To set or modify the utilization formula, the admin can go to Settings → Utilization card.

When you want to add a new formula, click on the upper right button Add New Formula and you will see a popup where you can choose which Type of formula you want: Standard Hours Formula.

Once the type is selected, the next step is Edit.

Selecting what are productive activities

Actual is all the time that employees are actually going to spend, and these times are placed above the line. Productive time is always mandatory, all other times are optional.

The Standard Hours formula is the only type that allows precise definition of expected working hours. 'Expected' represents the total number of hours a team is required to work.

Admin can customize which activities are considered productive, tailoring the calculation to their specific needs. The sum of these activities serves as the numerator in the utilization formula.

Configuring work expectations

Expected work time

Admin can set Expected Total time - total amount of time employees are expected to work productively each day. This can be a whole number of hours or include both hours and minutes. This number will be used as the denominator in the formula.

Setting the expected number of working hours per day is required.

Working days

Admin can also define expected Working days during the week. For example, employees will not have utilization expectations for weekends, if Saturday and Sunday are not selected. As a result, the utilization score will not be calculated for those days, and "N/A" will appear in the utilization column on Timesheets.

Specify which days of the week are considered standard working days is required.

Admin can also set a minimum amount of work required for a day to be considered a working day. For example, if employees log less than 30 minutes of work in a day, utilization expectations will not apply. As a result, the utilization score will not be calculated, and "N/A" will appear in the utilization column on Timesheets.

N/A applies across all utilization scenarios.

For example: in the Standard Hours scenario, if an employee has 0 Standard Hours in the selected period, their utilization will show as N/A.

Working on Weekends and Non-Working Days

This feature ensures that time logged on weekends or non-working days does not negatively impact an employee’s utilization.

If an employee logs time on a day that is not defined as a working day (for example, a weekend), that time will not lower their utilization score—even if no Time Off is recorded.

This is especially important for employees who occasionally work on weekends, employees with different working schedules at the weekly level and cases where Time Off is not consistently tracked

Example

An employee is expected to work Monday to Friday (8 hours per day).

  • Monday–Friday: 40 expected hours

  • Weekend: not counted as working days

If the employee logs:

  • 40 hours during the week

  • +5 hours on Saturday

The utilization will still be calculated based on the 40 expected hours, and the additional 5 hours will not negatively affect the result.

Threshold

Threshold is an optional setting that defines the minimum amount of work required for a day to be considered a working day. Days that do not meet this threshold will not be counted as working days.

Setting the threshold to 0 ensures that all Monday to Friday days are counted as working days, regardless of the time logged or used in utilization calculations

Time Off and Standard Hours formula

Admins and managers with the necessary permissions can manually enter Time Off from the UI of the Schedules page or import it via CSV. They can specify:

  • Partial Time Off (specific hours within a day)

  • Full-day Time Off (one or multiple days)

Each Time Off entry can also be categorized into types such as: vacation, sick leave, public holiday, unauthorized leave, or other.

Impact of full-day Time Off on utilization score

A full day off is treated as a non-working day, meaning the utilization score will not be calculated for that day, and "N/A" will appear in the utilization column on Timesheets.

Impact of partial-day Time Off on utilization score

For partial days off (e.g., an employee works 4 out of 8 hours due to a doctor’s visit), the expected total time is adjusted proportionally. In this case, the formula’s denominator is 4 hours instead of 8, reflecting the reduced work expectations.

Understanding employee’s long-term utilization score

Employees who work extra hours on weekends or during Time Off will have a higher utilization percentage over time compared to colleagues who did not work on those days or had reduced expected productive hours due to partial Time Off, helping identify employees who exceed expectations.

Standard Hours formula excludes expected productive hours for non-working days from the denominator but includes all recorded productive activities from those days in the numerator when looking at longer time periods.

Did this answer your question?