Helia HR

Realization rate

The share of worked hours that actually reaches an invoice: billed hours ÷ worked billable hours. Utilization measures selling your time; realization measures getting paid for it.

Realization asks a narrower question than utilization: of the client work the team actually did, how much was billed? Realization rate = billed hours ÷ worked billable hours (or, in money terms: amount billed ÷ hours × standard rate). A team that logs 160 hours on a client project and invoices 140 of them realizes 87.5% — the other 20 hours were worked and given away.

Where hours leak between the timesheet and the invoice:

  • Write-downs at invoice review — "the client won't accept 12 hours for that fix".
  • Overruns absorbed silently on fixed budgets and retainers.
  • Unlogged work — the quick calls and one-line fixes nobody records.
  • Rounding and goodwill discounts applied at the last minute.

None of these are automatically wrong — a deliberate write-down can be sound client management. The failure mode is that they happen silently, so pricing never learns. The discipline: every billed month gets compared against logged hours, every write-down carries a reason, and persistent gaps feed back into estimates or rates instead of into quiet discounting.

Utilization × realization × collection is the honest chain from capacity to cash — each stage can lose a slice.

In Helia, the invoice generator prices locked timesheet hours per project and month and labels each line "from timesheets"; when someone has no locked timesheet, the line falls back to planned hours and is explicitly marked as an estimate — so worked-versus-billed is visible line by line before anything is sent.

Track it instead of defining it

Helia gives IT services teams the directory, capacity matrix, time off and client invoicing behind these numbers — in one place.