Resource capacity is the total amount of work a resource can handle, whereas resource demand refers to the number of people required to complete a task or project. Both these metrics can be measured in various units such as hours, full-time equivalents (FTEs), people, or days.
Generally, businesses perform capacity vs. demand gap analysis to align current staffing levels with future project requirements. This helps determine potential resource shortages, implement corrective measures, avoid costly hiring, and improve productivity and profitability.
