If you’re a CEO, head of operations, or project manager you’ve likely been asked, “What is resource management?” Efficient human resource management is vital to keeping your business running smoothly, reducing costs, and increasing profitability.   

Are you tired of having too many resources contributing to unplanned expenses or having resource shortages disrupting daily operations? Intentional resource planning and management allow you to stop reacting and start being proactive with your human resource use. This guide will explain resource management, why it matters, and how to do it well.

Take charge of your human resources use with Parallax’s resource management software.

What We’ll Cover

• What Is Resource Management?
• Why Is Resource Management Important?
• Resource Management Benefits
• Resource Management Examples
• How Does Resource Management Software Work?

What Is Resource Management?

Resource management involves planning, allocating, and overseeing a company’s resources. What are resources in a business? In this context, resources mean employees, but depending on your industry, they can also refer to tools, equipment, and time. Resource management encompasses any processes and techniques used to plan, track, and manage resource use. It aims to determine the most cost-effective combination of resources and how to use them.

There are several different resource management techniques that companies can leverage based on their needs and goals:

• Resource allocation: Having a list of employees and assigning when and what role they will have for different projects.
• Resource utilization: Analyzing how resources are currently being used, overused, or underused, and offering suggestions to improve the efficiency of resource use.
• Resource forecasting: Making predictions about what resources will be needed in the future to project, plan, and prioritize efficiently.

Why Is Resource Management Important?

Why is it important to manage resources thoughtfully? An efficient resource management plan helps maximize productivity, improve project outcomes, and increase your business’s return on investment (ROI). 

Employee shortages can halt operations, potentially causing missed deadlines, other employee burnout, upset customers, and revenue loss. On the other hand, too many employees who don’t have enough work can lead to underutilization. Resource managers look for the sweet spot where there are enough employees who can do the required work.

Resource Management Benefits

Any type of business can benefit from resource management, from startups to multinational companies and storefronts to digital service agencies. By using a systematic method for managing resources, you can gain more control over your business’s costs and ROI. This happens through optimizing the allocation and utilization of resources. 

Effective resource management ensures projects follow the set timeline and budget, improving project efficiency and increasing client satisfaction. Optimizing human resources can also improve team collaboration and communication, increase productivity, and minimize unnecessary labor costs. Let’s explore each of these benefits in more detail. 

Improved Project Efficiency

Resource management improves project efficiency by ensuring the right resources are available when they are needed and that they are utilized effectively. This leads to faster project completion and fewer delays or bottlenecks. Resource use should be constantly monitored and compared to plans, budgets, and goals for streamlined operations. Projects can be adjusted as needed to avoid waste and operate at maximum efficiency.

Enhanced Team Collaboration And Communication

Resource management enhances team collaboration by fostering clear communication about roles, availability, and responsibilities. This transparency enhances accountability, aligns team members, and reduces misunderstandings. It also allows executives and managers to create dynamic teams that can be flexible and shift as needed to optimize resource use. When employees are set up for success, they can focus on innovation and efficiency.

Excellent employee resource management is key to leveling up your business’s productivity. 

Optimized Resource Allocation

Optimized resource allocation ensures that resources are used where they’re most effective. This reduces underutilization and employee burnout. It ensures resources are applied strategically to meet project and organizational goals. Employees should also be evaluated regularly to measure and improve their performance.

Increased Utilization

Resource management helps increase resource utilization by minimizing idle time and maximizing productivity. This ensures you are fully leveraging available resources. For example, if your team is going to be overutilized for a month due to a one-off project, you can then confidently hire a contract role versus a full-time employee.

Resource Management Examples

Not sure what resource management looks like in action? The examples below from businesses that use Parallax’s resource management software illustrate real-life applications that enhance business operations:

• Clockwork uses resource management techniques to adjust workloads effectively when an employee is going to be out of work for vacation or another form of leave. This ensures projects stay on track and no one is overworked.
• Planet Argon integrated resource management software with its customer relationship management (CRM) software and time tracking tools to create a seamless workflow and share information between systems and across teams. This guarantees that everyone is always on the same page. 
• HUSH leads long-term, large-scale projects. It leveraged resource management software to quickly price large projects and break them up into phases. This makes it easier to allocate resources effectively, adjust plans as needed, and communicate with clients about budget and timing changes.
• Raindrop started using resource management to improve the bottom line of its business and discovered that a lot of their estimates for time had been off and they were missing around one million dollars in billable revenue. Now, they can bill their clients for all the time that is actually billable.

Learn the differences between resource and task planning, so you can use them both to maximize profits.

How Does Resource Management Software Work?

Resource management is complex and involves many aspects of operations and multiple departments. Resource management software helps businesses plan, track, and allocate resources in a centralized platform.

With Parallax’s resource management software, executives, managers, salespeople, delivery teams, and other employees can all collaborate in one place. Our comprehensive platform uses engaging data to promote transparency and accountability among your team members. It’s easy to share resource plans, view utilization insights, and monitor project progress for improved efficiency.

Resource management skills include the ability to determine what resources will be needed in the future. Predictive software can compute forecasts quickly and accurately, taking into account supply, demand, and market trends. With Parallax’s predictive resource management software, it’s painless to tackle resource management now and plan months ahead to streamline operations and decision-making. 

See Parallax’s Resource Management Software

It’s important to take the time to create a comprehensive resource management plan first. This includes understanding who and how many employees you have, planning how you will acquire new human resources, and creating a schedule of how and when resources will be allocated. It also involves having a system in place to track progress, monitor resource utilization, and adjust as needed for maximum efficiency. 

Effective resource management is the strategy you need to gain control over your human resource use, but you don’t have to go at it alone. Parallax’s resource management software allows you to be proactive and data-driven, taking the guesswork out of resource forecasting, leveling, allocation, and optimization.

Ready to learn more about what resource management software can do for your bottom line? Schedule a live demo of Parallax to see what makes our products unique.