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In the current business market, companies need an optimized workforce to remain profitable. However, resource management is not an easy task. It involves several activities like capacity planning, competent allocation, monitoring utilization, etc. To streamline these processes, organizations need capable resource managers.
Even though it is a non-billable role, resource managers take care of processes like identifying and allocating the right resources, maximizing billable utilization, on-time delivery of projects, and more.
This post discusses the roles and responsibilities of resource managers in an organization and how Saviom can streamline the work of resource managers.
Let’s get started!
Key skills and qualities of resource managers
Since resource managers have high responsibilities, they must possess specific skills and abilities to perform their duties flawlessly. Let’s look into a few of them:
- Communication skills
Resource managers act as the mediators between project managers and resources. Excellent communication skills help them comprehend the project’s resource requirements and communicate them appropriately to the workforce.
- Domain expertise
A resource manager should possess subject matter expertise to allocate the right resource to a project. Knowledge about the basics, technologies involved, areas of application, and the functioning of the sector is an added advantage in their role as resource managers.
- Quick decision making
Resource managers should be capable of prioritizing the tasks and allocating resources as per their skills to the project. Furthermore, they should make quick and informed decisions in implementing the corrective measures to bridge the skill gaps.
- Negotiation skills
Sometimes a project might require niche skilled resources, and it is expensive to hire new ones. In such cases, the resource manager should be able to negotiate with the project managers to deploy less experienced resources and provide them with better opportunities.
- Problem-solving abilities
Resource managers must have efficient problem-solving skills to mitigate resource-related risks, like prolonged absence, unplanned attrition, skill gaps, etc., and create a backup plan. In addition, they also need to implement measures to resolve conflicts between resources.
- In-depth knowledge of resource management tools
With advanced tools replacing the traditional ones in organizations, resource managers must have hands-on experience with resource management tools. In addition, they must possess knowledge of terms like resource forecasting, capacity planning, etc.
Let’s dive into their organizational roles and responsibilities.
What are the roles and responsibilities of a resource manager in an organization
Since resources are the critical investments of an organization, the onus of effectively allocating them to the right project lies with the resource manager.
Let’s look into their primary responsibilities:
1. Forecasts and bridge the capacity vs demand gap
When a project reaches a certain probability of closure at the pipeline stage, resource managers must coordinate with the project managers and understand future resource requirements. Resource managers would conduct capacity planning and implement the right resourcing treatments to mitigate excess/shortages of resources.
In case of shortages, resource managers can adopt measures such as allocating the benched resources to the project based on their skills, implementing the out rotation/backfill strategy, or hiring on-demand or permanent employees. In case of excess, they can bring forward the project timelines, redeploy resources in other projects or sell the excess capacity.
2. Coordinates with project managers to fulfil resource requests
Resource requesting is a systematic process that starts before the commencement of a project. Here the project managers raise the request based on project demands, and it is the resource manager’s responsibility to fulfill it. At times the project manager raises requests in a staggered manner due to changes in client requirements.
Therefore, resource managers should look into the pool and identify appropriate resources based on the requests to ensure timely project delivery. Additionally, managers must implement task prioritization practices meticulously to ensure the proper allocation of resources.
3. Enables competent resource allocation
Resource requirements vary with each project. Therefore, one of the significant responsibilities of the resource manager is to ensure the effective allocation of resources to maintain the project quality and avoid budget or schedule overruns.
The centralized visibility into resource information enables resource managers to identify the right resources for the project. They should consider the resources’ abilities, like skills, competencies, qualifications, experience, cost, availability, etc., while allocating them to the projects. This will help them to align their skills with the demand.
4. Maximizes billable and strategic utilization of resources
Tracking and monitoring the utilization levels is vital to ensure optimal resource utilization. Resource managers ensure that resources are effectively utilized for billable and strategic activities.
By tracking the utilization, managers can identify if resources are working on billable, non-billable, or strategic projects. For instance, if resources spend 50% of their capacity on non-billable work like admin, training, meetings, etc., managers should mobilize them to be billable or strategic projects. It improves their overall billability and helps maintain a healthy resource index.
5. Ensures effective bench management
During ramp-down activities, numerous resources are released from a project and end up on the bench. An increased bench affects an organization’s profitability since they are on its payroll but do not generate any revenue. Therefore, resource managers must take appropriate measures to reduce the bench size and protect the organization’s profit margins.
They should mobilize rolled-out resources from projects to other tasks before they land on the bench or upskill/ train them to meet future demands. In addition, if there are experienced resources, managers can profitably utilize them for strategic work. Moreover, resources can be offered shadowing opportunities to reduce the bench size
6. Facilitates training and development programs
Due to fierce competition, market volatility, and increasing skill demands, employees must possess diverse skills that will help them in career growth and contribute to the organization’s success. Hence, a resource manager must stay updated with the latest skill demands factoring in the interests of the resources.
As per a survey, companies that invest in employee training gain 21% higher profits.
Resource managers need to identify the skill gaps and facilitate training and upskilling programs to futureproof the resources. This helps eliminate the frequent hiring and firing, save on workforce costs and improve productivity and engagement. Additionally, facilitating IDP (Individual development programs) and shadowing opportunities will help employees diversify their skills and enable organizations to utilize resources effectively.
7. Controls resource-related risks effectively
Resource managers must be able to assess and avoid workforce-related risks like overallocation, unplanned attrition, leaves, productivity issues, etc. These risks will lead to project delays and impact the organization’s overall growth.
For instance, at a critical project stage, one of the essential resources goes on unplanned leave. In such situations, resource managers should have backup plans to mitigate the risks effectively. Additionally, they can optimize the utilization levels of resources to minimize stress and burnout.
So, how can dedicated resource management software streamline their job?
How does advanced software help resource managers?
Effective resource management helps resource managers make better decisions for planning resources and assigning the right people to suitable work. A powerful tool like Saviom can offer them various benefits with its advanced features and functionalities. Some of the benefits are:
The 360-degree visibility helps resource managers identify and allocate the right workforce to suitable projects. It gives complete visibility of resource information related to skills, qualifications, competencies, availability, cost, etc.
Additionally, capacity vs demand reports help foresee future resource demands and ensures the organization has the required skills and capacity to deliver the pipeline projects. Moreover, they can effectively bridge the shortage/excess of resources with the right resourcing treatments.
Managers can optimize resource utilization using color-coded heat maps and take corrective measures to avoid over/underutilization. Furthermore, it helps enhance resource billability by mobilizing them from non-billable to billable and strategic work.
Finally, with bench reports, managers can foresee resources who will be on the bench and take appropriate measures like assigning them to suitable project vacancies, facilitating training or shadowing to enhance billability.
Thus, resource management software makes the resource manager’s responsibilities more efficient and organized.
Conclusion
Resource managers must have the right tools to gain a competitive edge. The above insights show how futuristic resource management software can boost the sustainability and profitability of an organization by optimizing the workforce. In addition, you can explore Saviom to know how it can help resource managers conduct their responsibilities seamlessly
