Utilization
“We simply believe that by treating our employees well and creating an excellent experience, including a great balance in
their lives, they will be even more focused on doing amazing work for our clients.”
In pursuit of the above, we measure how much time is spent doing billable work for our clients. We refer to this
operating metric as utilization, which measures billable hours as a percentage of potential hours. As discussed further
below, there are certain items excluded from billable hours and potential hours used in calculating utilization. This metric
is consistently calculated for the Company, markets, teams, and individuals 1. As our business evolves, we will continue to
evolve how we set utilization targets (i.e., not too high, not too low, but at a level that is appropriate), and we must
remember that utilization is only one of several key operating metrics.
Utilization = Billable Hours / Potential Hours
Billable Hours (Numerator)
The numerator includes billable hours as noted in our Professional Services Automation (PSA) system and excludes
billable hours with a $0 bill rate and non-billable hours.
Potential Hours (Denominator)
The denominator includes base hours 2 as noted in our PSA system and excludes all Slalom paid holidays and specified
leaves, as noted in our Human Capital Management (HCM) and PSA systems, respectively.
POTENTIAL HOURS =
+ BASE HOURS
- EXCLUDES HOLIDAYS
- EXCLUDES SPECIFIED LEAVES
2,080 hours for U.S.,
Canada and U.K.
56 hours for U.S.
Noted in Appendix A –
Potential Hours: Slalom
Holidays and Leaves
80 hours for Canada
64 hours for U.K.
Find Slalom BI certified utilization reporting on the BI Portal.
1
Team Member: resources in our HCM system whose division begins with ‘Slalom’, whose category is ‘employee’ or
‘leader’ (excludes ‘operations’), and whose cost centers don’t end in -998 (project employees) or -999 (sub-contractors)
2
Base Hours are variable and are determined by the hours/work week in the market’s location; e.g. France’s 35-hour
work week results in 1820 base hours, and U.S.’s 40-hour work week results in 2,080 base hours.
Questions? Contact bi@slalom.com
Utilization
8/2/2017
APPENDIX A – POTENTIAL HOURS: SLALOM HOLIDAYS AND LEAVES (BASED ON 2017 TIME CODES)
SLALOM U.S. NON -PROJECT TIME CODES
Included in Potential Hours?
Available
Yes
Bereavement
Yes
Floating Holiday
Yes
Jury Duty
Yes
New Hire Orientation
Yes
Professional Development - External
Yes
Professional Development - Internal
Yes
PTO
Yes
Sabbatical
Yes
Sick Leave
Yes
Holiday - Christmas
No
Holiday - Day After Thanksgiving
No
Holiday - Independence Day
No
Holiday - Labor Day
No
Holiday - Memorial Day
No
Holiday - New Year
No
Holiday - Thanksgiving
No
Intermittent FMLA Leave
No
Leave of Absence
No
Military Leave - Paid
No
Military Leave - Unpaid
No
Parental Leave - Partner Paid
No
Parental Leave - Partner Unpaid
No
Parental Leave - Primary Paid
No
Parental Leave - Primary Unpaid
No
SLALOM CAN NON -PROJECT TIME CODES
Included in Potential Hours?
Bereavement Leave
Yes
Jury Duty
Yes
New Hire Orientation
Yes
Non-Billable
Yes
Sickness Absence
Yes
Questions? Contact bi@slalom.com
Utilization
8/2/2017
Vacation
Yes
Stat Holiday - Boxing Day (Ontario Only)
No
Stat Holiday - Canada Day
No
Stat Holiday - Christmas
No
Stat Holiday - Civic Holiday
No
Stat Holiday - Family Day
No
Stat Holiday - Good Friday
No
Stat Holiday - Labour Day
No
Stat Holiday - New Year
No
Stat Holiday – Remembrance Day (British Columbia Only)
No
Stat Holiday - Thanksgiving
No
Stat Holiday - Victoria Day
No
SLALOM U.K. NON -PROJECT TIME CODES
Included in Potential Hours?
Adoption Leave
Yes
Annual Leave
Yes
Available
Yes
Compassionate Leave
Yes
Meetings
Yes
New Hire Orientation
Yes
Non-Working Day
Yes
Professional Development - External
Yes
Professional Development - Internal
Yes
Public Duties
Yes
Sickness Absence
Yes
Unpaid Leave
Yes
Bank Holiday - August
No
Bank Holiday - Boxing Day
No
Bank Holiday - Christmas
No
Bank Holiday - Easter Monday
No
Bank Holiday - Good Friday
No
Bank Holiday - May Day
No
Bank Holiday - New Year
No
Bank Holiday - Spring
No
Maternity Leave
No
Parental Leave
No
Questions? Contact bi@slalom.com
Utilization
8/2/2017
Paternity Leave
No
Shared Parental Leave
No
APPENDIX B – EXAMPLE UTILIZATION CALCULATIONS
SIMPLE U TILIZATION
A Slalom U.S. employee booked 40 billable hours.
100% UTILIZATION =
40 BILLABLE HOURS
40 BASE HOURS
U TILIZATION WITH HOLIDAY HOURS
A Slalom CAN employee booked 32 billable hours and 8 holiday hours.
100% UTILIZATION =
32 BILLABLE HOURS
40 BASE HOURS – 8 HOLIDAY HOURS
U TILIZATION WITH HOLIDAY, $0 BILL RATE, AND COMPASSIONATE LEAVE HOURS
A Slalom U.K employee booked 20 billable hours, 4 hours at a $0 bill rate, 8 hours of compassionate leave, and 8 holiday
hours.
63% UTILIZATION =
20 BILLABLE HOURS
40 BASE HOURS – 8 HOLIDAY HOURS
U TILIZATION WITH FMLA AND NON -BILLABLE HOURS
A Slalom U.S. employee booked 18 billable hours, 2 non-billable hours, and 20 hours of intermittent FMLA leave.
90% UTILIZATION =
Questions? Contact bi@slalom.com
18 BILLABLE HOURS
40 BASE HOURS– 20 HOURS INTERMITTENT FMLA LEAVE
Utilization
8/2/2017