The fast-paced evolving market trends have given rise to volatility in the market demand. It has now become the practice of every modern business. The current market situation has escalated this issue further and has resulted in substantial economic uncertainties.
The most pertinent question during these adversities is how to reduce operating costs and sustain the business?
One needs to reduce resourcing costs because human resources are the most significant part of the expenses for most businesses. This article emphasizes various ways to reduce resource costs using modern resource management solutions.
1.Maximize Profitable Utilization
It’s high time to know that profitability cannot be measured with the number of hours logged in by employees. Even if employees are working hard, it doesn’t necessarily generate more revenue for the business.
They may be consuming their valuable time on non-billable and non-essential admin activities or working on non-strategic projects. Hence, a business manager must maximize profitable utilization by allocating billable projects to the resources.
Switching to modern resource management software can help you significantly improve profitable utilization. It requires forecasting resource allocation so that one can get a better insight into resource utilization on billable projects.
This centralized visibility will help you mobilize employees from non-billable or low priority work to billable or high priority projects.
2.Tips to Deploy Competent Resources at the Right Cost
Having the right resource with the right skills is crucial for a project to finish within budgeted time and cost. You can Identify and allocate competent resources instantly in the project. It can be based on their availability, skills, qualifications, location, team, resource cost rate, and any other criteria. The selection of resources can be made with the help of enterprise-wide visibility.
3.Tips to Reduce Resourcing Cost
Deploying a modern resource management solution will enable you to reduce resourcing cost significantly by helping you
- Minimize under/over skilled resources on projects.
- Utilize cost-effective global resources without compromising quality.
- Avoid last-minute hiring costs with proper capacity planning.
- Minimize hiring/firing cycles by aligning project workload with the workforce capacity.
4.Tips to Control Project Cost Ahead of Time
You don’t want last-minute budget overruns to create hurdles for your project. To avoid this, forecast and keep track of various financial attributes of a project, i.e., cost, revenue, profit margins, and overheads. It helps you in taking corrective actions and control project costs ahead of time.
5.Tips to Forecast and Ensure That Excessive Capacity Is Not Wasted
In lots of businesses, excessive resource capacity goes unnoticed, wasted, and ends up working on non-billable activities.
Modern Resource Management Solution uses sophisticated capacity planning techniques, which can easily get foresight into an excess of resources. Decision-makers can then take corrective actions well in advance and allocate billable projects to resources.
6.Tips to Improve Employee Productivity
Enhance employee productivity significantly by
- Having work allocated as per employee’s competencies and areas of interest.
- Empowering employees to work on projects of their interest.
- Reskilling employees to bridge future resource capacity and skill gaps.
7.Tips to Build an On-Demand Workforce to Reduce Cost
In a volatile environment, effective resource capacity planning helps you in forecasting future excesses/ shortage of resources against the changing demand.
It helps your firm to be proactive in hiring an on-demand workforce. (contractors, part-timers, casuals, freelancers, etc.)
8. The Glossary
9.The SAVIOM Solution
SAVIOM is the market leader in providing solutions to help businesses manage their resources efficiently and effectively. Having more than 20 years of experience, this Australia-based MNC has established its global presence across 50 countries and helped more than 100 customers achieve their business goals. . SAVIOM also provides tools for project portfolio management, professional service automation, and workforce planning software that is highly configurable as per your business requirements.