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Okouro Glossary
Table of contents DefinitionFormulaWhy it mattersThree ways to make activity rates comparableHow Okouro shows itQuestionsRelated terms
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Activity and time

Activity rate conventions

Two conventions for the activity rate. Both divide billed days by working days, and planned leave in or out of the denominator is the only difference.

Definition

The excluding-leave activity rate is the share of consultants' time that gets billed. Take billed days and divide them by potential working days minus leave: paid vacation and the statutory rest days that come with reduced-working-time agreements. The result is the rate most IT-services firms use to steer billable utilization month to month.

The including-leave rate keeps the same numerator but leaves vacation and reduced-working-time days in the denominator, so it is always less than or equal to the excluding-leave rate for the same person. Neither convention is defined by law or by the Syntec labour convention (IDCC 1486); both come from management practice, which still disagrees on whether sick leave is also excluded.

Formula

Excluding-leave rate = billed days / (potential working days - planned leave days). Including-leave rate = billed days / potential working days. The only difference is whether leave stays in the denominator.

Example: 12 billed days in a 20-working-day month with 3 planned leave days: excluding-leave rate = 12/17 = 71%, including-leave rate = 12/20 = 60%.

Why it matters

Two managers can report different activity rates for the same consultant because only the leave treatment differs: the holiday calendar swings one denominator and not the other, which is why the two numbers diverge. The excluding-leave rate flatters month-to-month steering by discounting planned absence; the including-leave rate shows how much of total capacity actually bills. Neither rate is defined in law, and firms even disagree on sick leave, so two teams comparing numbers without a stated rule risk a silent mismatch. Stating the convention and showing both figures keeps steering honest.

Three ways to make activity rates comparable

  1. 1

    Write down which convention your firm applies to sick leave, so every team computes the same number.

  2. 2

    Report both rates, each labeled with its leave convention, so readers know which denominator each percentage used.

  3. 3

    Record leave before it happens: the excluding-leave rate depends on planned vacation and reduced-working-time days, and missing them inflates the rate.

How Okouro shows it

Okouro computes both styles of activity ratio continuously from validated timesheets and the leave calendar, so both conventions show up side by side without manual spreadsheets. A free plan is available.

Questions

Which one do firms actually use?
Most IT-services firms steer month to month with the excluding-leave rate, because it judges consultants only on the days they could realistically work. The including-leave rate serves capacity planning and annual views. Most steering decks and management reports show the excluding-leave rate, while the including-leave rate tends to appear in capacity and hiring discussions.
Is there an official definition?
No. Neither convention appears in law or in the Syntec labour convention, which covers pay and working time rather than these ratios. Both come from management practice, and practice still disagrees on sick leave. Write your own convention down and state it on every report.

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