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1. TRY IT FREE BOOK DEMO What is Resource Manager? A Guide to Key Roles and Responsibilities - By Ajay Kumar | October 30, 2024 Table of Contents Over the decades, the role of a resource manager has evolved from a mere function to a critical necessity. Irrespective of industry, resource managers play a crucial role in ensuring that organizational talent is allocated and utilized optimally across all functional areas. Their responsibilities extend far beyond basic scheduling. In fact, they are in charge of streamlining critical resource-centric functions such as demand forecasting, capacity planning, resource utilization tracking, workforce optimization, and learning & development programs. Further, they must align workforce requirements with overall business demand to foster organizational growth and sustainability. In this blog, we’ll explore what is a resource manager, along with their key roles and responsibilities. Let’s begin. We use cookies to optimise your visit. By continuing to browse our site you are accepting our cookie policy. For more information visit our cookies policy page

2. What does a Resource Manager do? A resource manager is responsible for planning, allocating, and managing all the resources under their span of control. These resources can be human or non-human assets, such as tools, equipment, facilities, etc. For a large organization, the average number of resources under a resource manager’s span of control can vary from 200 to 500. Typically, when a project manager raises resource requests , the resource manager assesses the enterprise resource pool to identify and allocate the best-?t professional matching the demand criteria of the project. Besides, they are responsible for monitoring and improving billable utilization, bridging skill gaps, ensuring bench management, and creating a ful?llment plan for open positions. Now, let us focus on understanding the basic prerequisites to becoming a resource manager. Requirements To Become a Resource Manager A resource manager typically must possess a combination of both educational and practical knowledge to be e?ective and e?cient in their role. Here are some essential academic and professional requirements: Education As per a study by Zippia, “64% of resource managers have a bachelor’s degree, making it a common educational quali?cation among them.” At a minimum, resource managers must hold a bachelor’s degree. They must seek specialization in subjects such as resource management, project management, or labor relations to succeed in the ?eld of resource

3. management. The most common degrees that RM pursue include: Business administration Human resource Communications Psychology Operations management Although not necessary, having a master’s degree in these domains can help resource managers secure senior positions and better compensation. Certi?cations Apart from basic quali?cations, additional certi?cations and credentials can greatly enhance an RM’s credibility and skillset, making them more e?ective in their role. The most common certi?cations include: Resource Management Certi?ed Professional (RMCP) Certi?ed Resource Planning Professional (CRPP) Professional in Human Resources (PHR) Certi?ed Scrum Master (CSM) Six Sigma Certi?cations Further, when employees bring recognized credentials to the table, their chances of getting promotions, senior-level roles, or more diverse job opportunities become higher. Work Experience Gaining the right experience is the key to becoming pro?cient. Therefore, one must pursue entry-level jobs to obtain practical, real-world insights and skills that are not easily gained through education alone. The common entry-

4. level jobs are: Coordinators Project analysts Data analysts Consultants The experience gained from these roles can help interested professionals to become resource managers later in their careers. People Skills Beyond industry quali?cations, a resource manager should possess strong interpersonal or people skills . These skills are essential for e?ective communication, resolving resource-centric con?icts, fostering collaboration, and maintaining team harmony. A few relevant people skills that any resource manager must have are: Communication Con?ict Resolution Negotiation Adaptability As a key point of contact between various business units and stakeholders, a resource manager relies on these skills to ensure a smooth and e?cient resource management work?ow. Having understood what is a resource manager and the requirements for the position, let us explore some of their key responsibilities within an organization.

5. Resource Manager Responsibilities and Functions A resource manager needs to ful?ll certain vital responsibilities to keep the organization running smoothly. Here’s a rundown of their essential responsibilities. Helps Project Managers with Capacity Planning for Pipeline Projects A resource manager must coordinate with the project manager to stay abreast of future resource requirements for pipeline projects. They ?rst foresee the resource demand and assess the available capacity to ?nd any

6. existing gap between them. Then, they can proactively implement appropriate resourcing treatments to bridge the gap. For instance, if there is a shortage, RM can allocate people on the bench, implement the out-rotation and back?ll strategy, or go for planned hiring to proactively ?ll the project vacancies. Conversely, if there is excess capacity, the RM can request the project manager to bring timelines forward or sell the expertise at discounted rates. Read More: 5 Best Practices for Capacity Management Assign Resources to Projects as Per Competencies and Skills Every project requires a set of di?erent skills, and misalignment in these resource competencies and demands can impact its quality or timeline. For instance, assigning a critical or niche-skilled resource to a routine, mundane task can lower their engagement and escalate project budgets. On the contrary, allocating an under-skilled resource to skill-intensive tasks hampers the project’s progress and quality. Thus, the vital role of a resource manager is to diligently assess each project’s resource requirements and understand the skills and competencies needed. Then, based on resource availability , allocations are made, ensuring that they align with the attributes of resources, thus eliminating future project bottlenecks. Tracks Resource Utilization and Employee Performance The onus lies on the RM to maintain the resource health index. Therefore, they must track utilization levels in real-time to ensure every resource works on billable or strategic projects. Another job under their purview is evaluating the workload and distributing it uniformly among all resources to prevent

7. over/underutilization. If resources are overutilized, RMs can pull in more resources to redistribute the work, make utilization levels uniform, and prevent employee burnout. For underutilized resources, ?nding some billable or strategic work to assign them to can help enhance everyone’s productivity. Read More: How to Track Resource Utilization? Collaborates Within Departments for Resource Requirements Although resource management is an independent discipline, it requires coordination between resource managers and other leaders or supervisors of the organization. For instance, to understand the project’s criticality and requirements, an RM must collaborate with project managers or the PMO. Otherwise, it will become arduous for them to ?nd the ideal ?t for the job. Furthermore, collaborating enables them to manage dependencies e?ciently by creating a comprehensive resource plan and adjusting it to avoid con?icts or delays. Finally, to bridge skill gaps or resource crunch, they must coordinate with HR managers to streamline the recruitment process and implement tailored training and development programs. Creates Learning and Development Roadmaps for Resources “Gartner’s recent reveals that 58% of the global workforce needs research new skills to get their jobs done.” This stat highlights the value of constant training and upskilling of resources in retaining a competitive edge and high productivity. Thus, a resource manager has to stay updated with evolving industry and technology trends and skill demands. It is also vital for them to take resources’ interests and

8. aspirations into account. Accordingly, they must identify skill gaps and formulate a personalized learning and development program to future-proof their workforce. This way, they avoid frequent hiring/?ring cycles, save resource costs, and boost employee engagement. Read more: How Can Retraining/Upskilling Future-Proof Your Workforce? E?ectively Manage Bench & Implement Corrective Measures Bench refers to employees who are not allocated to any client or strategic project, which means they are non-billable but on a company’s payroll. An RM needs to constantly track bench size using a resource management tool to ensure it doesn’t exceed the threshold. For that, they must foresee project ramp-downs and ?nd suitable project vacancies to allocate employees before they hit the bench. Besides, they should also implement appropriate resourcing treatments such as training or upskilling for the benched resources to utilize them e?ectively. Additionally, providing shadowing opportunities to engage freshers and assigning senior employees to strategic work or training juniors falls under the radar of resource managers’ responsibilities. Develop Appropriate Resource Risk Mitigation Plans Creating relevant resource risk mitigation plans is a key responsibility of a resource manager to minimize disruptions that may arise from workforce- related challenges. This involves identifying risks such as resource shortages, skill gaps, double booking, over/underutilization, or resource dependencies that could impact project timelines and deliverables. The RM must then devise appropriate contingency plans, such as cross-

9. training, workforce optimization techniques, or creating a bu?er of resources to mitigate these risks. By proactively managing these challenges, the resource manager helps ensure that projects remain on track and are completed e?ciently, even in the face of unforeseen circumstances. Now, let us explore the essential skills required by an RM in an organization. Read More: How to Mitigate Resource Risk in Project Management? Skills Required for A Resource Manager Resource managers need to be equipped with essential management and people skills to perform their duties e?ectively. Let’s look at some of them: Excellent Communication Skills Excellent communication skill is a must-have management skill for resource managers. It helps them understand the requirements of a project manager and convey them to the resources better. Further, it enables them to convey resource-related risks to project stakeholders e?ectively. As a result, excellent communication skills help RM to maintain project work?ow and ensure seamless collaboration between various stakeholders. Problem-Solving Skills In project-based ?rms, critical resources are often in high demand as project managers compete to get them. Thus, a resource manager must exhibit quick problem-solving skills to resolve power con?icts between project managers. For instance, two projects start simultaneously, and both require the same skilled critical resource. So, the RM must prioritize the project that has maximum business value or ROI and allocate the resources to that speci?c initiative.

10. Leadership Skills With strong leadership skills, RM can o?er a clear vision by establishing priorities that align team e?orts with the projects and the ?rm’s goals. This involves assessing situations, weighing options, and making informed decisions regarding resource management in general. Further, it also helps them provide guidance and mentorship that motivate resources to upskill themselves and work optimally. Analytical Skills Good analytical skills help RM to assess, interpret, and evaluate various resource-based data to make informed decisions. For instance, using past project data of similar scope, RM can forecast future pipeline project demands and ?uctuations, giving them the lead time for risk assessment. This data enables them to prepare e?ective mitigation strategies and account for the uncertainties. Moreover, this skill helps them prepare concise reports outlining adequate ?ndings & recommendations for stakeholders. Read More: What is a Risk Matrix, and Why is it Important? Negotiation Skills Negotiation skills are a key asset for resource managers. They enable the managers to balance the organization’s needs and ful?ll a project’s demand. These skills come into play when mediating discussions in case of con?icts, helping project managers and stakeholders reach a mutually agreeable solution that satis?es everyone’s needs. Furthermore, these skills are crucial when negotiating contracts and agreements, ensuring they align with the project’s budget. Resource Management Tool Pro?ciency

11. Managing resources e?ectively, especially when working in a large ?rm, is not possible without resource management software. Having pro?ciency in the tool can help RM organize and optimize various processes such as workforce planning, resource forecasting , capacity planning, and scheduling. Moreover, it allows them to access real-time reports and leverage critical data to enhance the resource health index. Read More: How Can You Make Data-Driven Decisions with Resource Management Software? Now, let’s see how the role of a resource manager is di?erent from other management positions. Resource Manager vs. Other Management Roles While the RM role revolves around allocating and utilizing resources, other management roles like project management, HR, and operations involve wider responsibilities that intersect with the organizational goals. Thus, it is essential to understand these distinctions and how they work within an organizational setting. Resource Manager vs. Project Manager Resource managers and project managers play crucial roles in completing a project. The former assures that the project avails the right resources at the right time while ensuring optimal resource utilization . On the other hand, the latter ensures projects are delivered within the time and budget constraints by utilizing the available resources. Here is a comparison:

12. ASPECT RESOURCE MANAGER PROJECT MANAGER Manages employees and other resources across multiple projects within their span of control Manages projects-related activities, including initiation, execution, and delivery Primary Focus Performs forecasting & capacity planning, allocates resources, facilitates bench management, and ensures optimal utilization De?nes project scope, understands requirements, and estimates timelines & budgets Key Responsibilities Facilitates allocation of the right resources to tasks while ensuring employee satisfaction and engagement Guides resources to deliver high- quality projects within time & budget constraints and boosts client satisfaction Goals Essential skills are leadership, time management, communication, domain knowledge, stakeholder management, and risk management Common skills include strategic planning, analytical & problem- solving, negotiation, communication, and risk management Key Skills Establishes KPIs to measure resource availability, capacity vs. demand, and utilization rates Monitors project performance using milestones and deadlines achieved, cost, and quality metrics Primary Metrics Often reports to operations or human resource departments Often reports to clients or senior management Reports To Identi?es and addresses project risks such as scoop creep, budget constraints, schedule overruns, etc. Addresses skill gaps, talent shortages, resource con?icts, and over/under allocations Challenges addressed Resource Manager vs. HR Manager Although both resource and HR managers strive to work towards maximum e?ciency and achieve business goals, their path di?ers. RM deals with forecasting, planning, allocating, and utilizing resources. However, HR managers ensure that while RM does that, no labor laws are broken and that resources are happy. Here is a comparison:

13. ASPECT RESOURCE MANAGER HR MANAGER Manages every resource (people, equipment, etc.) across various projects Manages recruitment, employee relations, and organizational culture Scope of Work Oversees recruitment and training, carries out employee performance management, adheres to compliance, and maintains employee relations Oversees resource allocations, monitors availability & utilization, and collaborates to ful?ll resource requirements Primary Responsibilities Ensures skill availability and facilitates competent resource allocations for maximum productivity and e?ciency Ensures positive employee experience and workplace culture, increases employee retention, and resolves con?icts Objectives Primary skills include resource management, problem-solving, negotiation, leadership, communication, and technology pro?ciency Key skills include communication, negotiation, compliance & legal knowledge, crisis management, and emotional intelligence Key Skills Monitors key performance indicators like resource utilization rates, capacity vs. demand, availability, etc. Important KPIs include employee turnover rates, cost per hire, and performance appraisal score Major Indicators Reporting Structure Reports to senior management on resource management Reports to senior executives in the HR department Resolves issues such as resource shortages, skill gaps, scheduling con?icts, and sub- optimal utilization Addresses issues such as employee grievances, compliance risks, and turnover Challenges addressed Let’s now look at the signs that indicate the urgent need for a resource manager. Read More: Resource Manager vs. HR Manager: What Are Their Roles & Responsibilities? Signs That You Should Invest in a Resource Manager In a fast-paced project environment, the absence of a resource manager can

14. lead to signi?cant challenges. Here are some key signs that indicate it’s time to consider investing in this crucial role: Hiring Delays and Mismatched Talent When an organization consistently faces frequent hiring delays and a lack of alignment between available talent and project needs, these are clear signs that it’s time to invest in a resource manager. Without e?ective resource management, organizations may struggle to ?ll critical roles or hire candidates lacking the necessary skills. These mismatches lead to reduced productivity, missed deadlines, and increased turnover as employees disengage from roles that don’t align with their expertise. Consistent Overload and Team Burnout When team members are constantly overloaded with tasks, leading to high stress and burnout, it’s a sign that a resource manager could greatly bene?t your organization. Without a balanced workload distribution, some employees may be overworked while others are underutilized, leading to burnout and increased attrition risk . These issues signal the need to hire a resource manager, who can track and optimize team utilization levels and maintain productivity. Frequent Resource Shortages If your projects regularly face delays due to a lack of available resources, it’s a strong indication that investing in a resource manager could transform your operations. Frequent resource shortages often result from inadequate forecasting, poor resource planning, or a lack of visibility into current and future project demands. These shortages can disrupt timelines, increase project costs, and create a reactive approach to resourcing where last- minute ?xes replace strategic planning.

15. High Disengagement & Low-Morale When skilled employees are repeatedly assigned to administrative tasks while junior sta? handle high-priority projects, it can lead to disengagement, low morale , and frequent absenteeism. If this unbalanced workload becomes a pattern, investing in a resource manager can help. By aligning resources to projects based on skills and interests, a resource manager keeps teams engaged and motivated, boosting productivity and retention. Skill Gaps in the Team Persistent skill gaps within the team can hinder project success and lead to delays or quality issues. Without a resource manager to assess team capabilities and match them to project needs, these gaps often go unnoticed until they impact deliverables. A resource manager proactively identi?es skill de?ciencies, enabling targeted training or strategic hiring to ?ll these gaps in advance. This approach ensures projects have the right skills on hand, improving productivity and overall outcomes. Read More: Six Reasons Why Businesses Need To Invest in Resource Managers How To Measure the Performance of a Resource Manager? A resource manager’s performance depends on how e?ciently they meet their key performance indicators (KPIs). The following are the primary KPIs to ful?ll for a project resource manager. Billable Utilization Billable utilization of every resource falling under an RM’s span of control is

16. one of the main KPIs. The percentage of the resources’ available capacity utilized for billable and strategic work determines their performance. Bench Size Bench size keeps increasing or decreasing according to constantly changing resource demands. A good resource manager must keep the bench size within a ?xed percentage of the available capacity or minimize it. Bench Aging The number of days a resource is on the bench is called bench aging. Ideally, the bench aging should be 0 days. However, in practical scenarios, it should not exceed 90 days. If it exceeds, it indicates an issue with the manager’s performance. Fill Rate The ?ll rate is measured to determine how e?ciently a resource manager can ful?ll the resource demand on or before the project begins. If a resource manager assigns the resource as per the demand on or before the start date, the ?ll rate is considered 100%. Individual Development Program (IDP) Every employee has their personal development goals and aspirations regarding their career. It is, therefore, vital for a manager to cater to the needs and give them enough opportunities to hone soft skills and other technical skills in their respective domains. Final Thoughts As resources are the key investments of a ?rm, tapping into their maximum

17. potential is highly important. That’s why resource managers are an integral part of determining project and organizational success. The primary objective of an RM is to increase an enterprise’s pro?tability and sustainability by maximizing the potential of the workforce. Therefore, one can become e?cient in this profession by understanding the key responsibility areas and re?ning the above-discussed resource management skills. The Glossary Read More: Glossary of Resource Workforce Planning, Scheduling and Management Leave a Reply Name * Mail (will not be published) * Website Comment * SUBMIT COMMENT

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