Human resources are the foundation of every successful business. They are the ones who keep the company running and bring in the desired revenue. Therefore, managing them efficiently and effectively is crucial for business profitability and sustainability.
Especially in a project-centric organization like professional services, intelligent use of resources is crucial to generate ROI. Resource managers are primarily responsible for allocating appropriate resources to suitable projects and ensuring their billability. A value-driven resource management software enables managers to assign best-fit resources and ensure their productivity.
This blog will explain the importance of resource managers and what will happen if companies don’t invest in them.
But first, let’s start with the definition.
Who is a Resource Manager?
A resource manager’s primary responsibility is to ensure that all resources under their span of control are profitably allocated across the entire organization. In addition, they help fulfill the project demand and provide resources matching the criteria on the project manager’s request. Thus, ensuring successful project completion.
Typically, a project manager will estimate the resource requirements and request the same from the concerned resource manager. Then, based on the request, the resource manager will find the competent resources and allocate them to the different tasks.
The resource management function looks after every resource within the organization and ensures that they are assigned to billable work.
Significance of Resource Managers in organizations
The role of the resource managers is one of the most critical factors behind the success of an organization. Here are some of the responsibilities of a resource manager that helps the organization perform to the best of its potential:
Implement effective resource planning and allocation
This is one of the primary responsibilities of resource managers. They need to plan the resources for the projects and ensure that the right resources are allocated to the right tasks.
Improper planning and allocation will lead to time and budget overruns. On the other hand, when resource managers implement effective resource planning and scheduling, it helps achieve optimum resource productivity. All these resource management techniques cumulatively result in the timely delivery of projects.
Exercise capacity planning to bridge resource demand
When there is a shortage of resources, they can either hire new resources or retrain existing resources. Otherwise, they can request the project managers to bring forward the project timelines if there are excess resources.
Coordinate with Project Managers during a project
Before the project starts, the project manager will raise resource requests to the resource managers. Following that, the onus is on the resource manager to find the best available project members. It must be noted that project managers may send resource requests in a staggered manner, and the resource manager is expected to fulfill the same.
Besides, the resource manager may need to coordinate with the project managers in any resource-related issue. For instance, the project manager may connect with the resource manager for prolonged resource absenteeism, lower productivity, etc. Following that, the resource manager will need to find a replacement resource for the smooth execution of the project.
Conduct training and development programs
Since resources are the building blocks of any organization, they need to remain upskilled and updated with the latest trends. It is the responsibility of the resource manager to look into these matters and ensure that the resources are ready at all times.
Resource managers need to plan training and development programs to hone up the skills of the resources and keep them project-ready. That way, the organization doesn’t have to exercise frequent hiring activities. As a result, the company can avoid unnecessary costs.
Hire competent resources as per the requirements
In the event of resource shortages, resource managers may not be able to use internal channels to find a relevant resource. For instance, if all the existing resources are engaged in other activities, they will not have the bandwidth for pipeline projects. In such situations, resource managers can either initiate regular hiring or delegate to an on-demand contingent workforce, depending on the project’s duration.
The resource managers need to connect with the stakeholders and make them understand the situation. After getting stakeholders’ consent, the resource managers can hire new resources as per the project’s requirements.
Assist the Project Manager in mitigating resource risks
There are various resource risks such as resource shortages, unplanned absences, sudden attrition, etc. All these factors may lead to project failure. Thus, there must be an effective resource risk management strategy to mitigate all these issues.
The resource manager may help the project manager in creating such a plan. Once the project manager identifies the risks, the resource manager will help assess and eliminate the resource-related risks. Thus, it will help avoid the derailment of projects.
What can go wrong if businesses don’t invest in Resource Managers?
The success of every project depends on the resources that are allocated to the tasks. Resource managers are responsible for the efficient allocation of resources. Furthermore, they deploy those resources based on their capacity, skills, and experience. Thus, if companies won’t invest in resource managers, it may result in sub-optimal resource allocation and planning. Ultimately, it will lead to project failures, hamper the company’s reputation, and result in client dissatisfaction.
Moreover, resource managers ensure that resources are utilized on billable or strategic work at all times. When a resource gets rolled off from a project, the resource manager acts proactively and assigns him to suitable work before he/she hits the bench.
Lastly, resource managers forecast the future availability of resources and bridge the resource gaps in advance. They identify the shortage/excess of resources and take appropriate measures to fulfill the demand. In the absence of resource managers, businesses may face lost market opportunities and find it hard to sustain amid market volatilities.
In a nutshell, the whole resource management structure will get negatively affected if businesses don’t invest in resource managers. Modern resource management software helps resource managers streamline their responsibilities and enable companies to gain a competitive edge.
SAVIOM has over 20 years of experience helping multinational clients manage their resources efficiently and effectively. With over 20 years of experience, this Australian-based MNC has a global presence across 50 countries and has helped 100+ clients meet their specific business goals. Saviom also provides tools for project portfolio management, professional service automation, and workforce planning software. So, SAVIOM can help your business to establish an efficient system geared towards your specific business challenges.