<key-takeaways>
<color="white">
Key takeaways:
- People-centric resource allocation sets projects on the right track from the get-go, giving team members full visibility into their project schedule and allocating their time to projects they enjoy and excel at.
- Team-wide access to a dynamic resource allocation plan that includes each individualβs working hours, skills, location, utilization rates, time off, current workload, and tentative projects ensures work is consistently delivered on time and within scopeβwithout causing burnout.
</key-takeaways>
In a perfect world, resource allocation would be easy: youβd line up your projects β divvy up your peopleβs time β and the project gets delivered.Β
But as much as we wish it did, this pared-down process doesnβt even begin to represent the real world, where youβthe long-suffering, caffeine-fueled people planner on the groundβare juggling:
- Limited resource availability and a large number of requests
- Team members with paid time off, national holidays, and the occasional cold
- A long list of existing projects (and plenty more in the pipeline)
- Your boss wanting you to deliver the project for Acme yesterday
The truth is that resource allocation is hardβbut people just like you do it successfully every day.
This guide shares proven tactics from the resource managers, traffic and project managers, team leads, and people planners perfecting the art of allocating their teamβs time accurately and sustainably.
What is resource allocation?Β AΒ people-centric definition
In the project management space, resource allocation is the process of identifying and assigning available resourcesβincluding people, time, money, and equipmentβto projects.
Allocating resources is easy when youβre a creative agency moving a camera from one shoot to another. Where resource allocation gets really tricky is when youβre the same creative agency moving the camera and also the tens or even hundreds of people involved in getting the work done.Β
Suddenly, you have to consider factors like each team memberβs availability, skill sets, and interests. You need to help them use their time productively while avoiding overutilizationβnot so easy when two of your digital designers are on parental leave, a copywriter has come down with the flu overnight, and (surprise!) an account manager is working remotely from a different time zone for the next month.
Making sense of all these moving parts and allocating the right resources is exceptionally challenging. But that elusive state called clarity (π‘!) starts with a solid resource allocation plan.Β
Your plan can look as simple as thisβ¦
Or as detailed as this:
<sme-box>
<sme-color=βgreenβ>
<sme-quotes>
π Note: because youβre dealing with people (and all the unpredictability that comes with them), your resource allocation plan itself should be viewed as a living entity that exists in a constant state of change. In other words, expect your carefully laid-out plans to be changing all the time.
</sme-quotes>
</sme-box>
How to allocate the right resources to the right projects
Allocating project resources effectively involves scheduling people onto projects to ensure work is delivered on time, on budget, and within scope, without causing burnout. Resources should be allocated based on project budget constraints, project requirements, timelines, and resource availability.Β
But as a people planner tasked with allocating your teamβs time to multiple overlapping projects, where do you begin?
We view effective resource allocation as a process that can be split into two simple steps:
- Identifying which projects to prioritize
- Determining who should work on them
Step 1: identify which projects to prioritize
At any point in time, several projects are being worked on while others are patiently waiting in the wingsβbut your team has a limited number of hours to get it all done. Thatβs why you need to prioritize projects and allocate your teamβs time to those that increase profitability for your organization.
<sme-box>
<sme-color=βpurpleβ>
<sme-image>
</sme-image>
<sme-author>
Emily Feliciano
</sme-author>
<sme-position>
Senior Creative Resource Manager at Atlassian
</sme-position>
<sme-quotes>
Emily Feliciano, the Senior Creative Resource Manager at Atlassian, deals with up to 60 resource requests every week. To prioritize requests, she uses a set of questions based around business value, urgency, and cost.
Β π Business value
- Are we mending a broken relationship with a client we really want to salvage?
- Is this a new opportunity to partner with a client weβve been seeking for a long time?
βοΈ Urgency
- What is the priority of this work?
- What is the level of importance of getting this work accomplished?
- Is there flexibility in the timeline for us to deliver?
π° Cost
- Is there a large budget attached?
Once these questions have dictated priority, she starts allocating peopleβs time in her dedicated resource management tool, Float.
π Find out more about how Atlassian uses Float for project prioritization
</sme-quotes>
</sme-box>
Ideally, projects that contribute to core business metrics, are urgent, and have big budgets should be prioritized when allocating project resources.Β
Hereβs a decision tree to make it easier:
Step 2: work with your team to find the best people for a project
Once you have an idea of the projects youβll soon be working on, itβs time to determine who can (and should!) take on the work.Β
Weβve said it before, and weβll say it again: youβre working with humans, not machines, so itβs important to evaluate not just how much time they have available but also what their strengths are and whether a specific project sparks their interest.Β
In other words, you need to know your teamβeasy enough when youβre allocating resources in a small, in-house team that does karaoke together every Friday; decidedly more complex when youβre doing it in a dispersed, global team of 100+ people, with multiple stakeholders involved.Β
<sme-box>
<sme-color=βpurpleβ>
<sme-image>
</sme-image>
<sme-author>
Maike Jahnens
</sme-author>
<sme-position>
Head of Financial Operations and Capacity Management at Scholz & Friends
</sme-position>
<sme-quotes>
There comes a time when larger and growing teams inevitably outgrow spreadsheets as a viable resource allocation and capacity planning tool. Maike Jahnens, the Head of Financial Operations and Capacity Management at global agency Scholz & Friends, oversees a team of more than 200 creatives and freelancers.Β
In the past, Jahnens (understandably!) found it near impossible to stay on top of peopleβs names and rolesβlet alone their individual skill sets and interests.Β
But after switching from a struggling spreadsheet to a dedicated resource management tool (itβs Float π), Jahnens has instant access to information like:
- What people are working on
- Where theyβre based
- What language they speak
- What projects are in the pipelineΒ
- What their skills are
More than just simplifying the resource allocation process, having all this information about team members accessible at a glance has helped Jahnens get to know her coworkers on a deeper levelβtheir strengths, interests, and areas for growthβand allocate their time to projects that truly inspire and energize them.
π Find out more about how Scholz & Friends uses Float to streamline resource allocation
</sme-quotes>
</sme-box>
Align each team memberβs skills to the right projects
Do you have people with the necessary skills for the entire project lifecycle? Are you missing any additional resources? Do you need a generalist or a specialist? Or should you be looking outside your team and hiring a freelancer?Β
For example, if youβre a digital marketing agency doing an SEO audit for your clientβs website, youβd ideally allocate a technical SEO specialist instead of a generalist digital marketer.
π‘Pro tip: you might be the person in charge of allocating peopleβs time, but these decisions should never be made in a silo. Keep communication lines open and involve your team and project stakeholders in the conversation as much as possibleβthis will positively influence your allocation decision-making.
Identify which team members are available
Allocating people with already stacked schedules can lead to work being done poorly to meet deadlines or constant context-switching. Your project might even grind to a halt because interconnected work wonβt be delivered on time.
Consider these questions before allocating your teamβs time:Β
- Does anyone have time off planned during projects?
- Is anyone on sick leave?
- Are any national holidays coming up?
- What are their work hours (e.g. are they working full-time or part-time)?
- How much of their time is already allocated to other projects?
- Can their current allocations be negotiated?
<cta-box><image-color="blue">
Simplify allocation with a dedicated tool
Adjust resources and timelines to changing priorities, and watch as your teamβs schedule updates dynamically and in real time.
<cta-button>Try for free</cta-button></cta-box>
Align allocations with your teamβs interests
During the resource allocation phase, donβt miss the chance to allocate people to projects that interest or challenge them. You might be lurking in a Slack channel and seeing a team member expressing a desire to work on a certain kind of project π Or perhaps youβre a team lead, and you think a direct report would do a fantastic job on a type of project that's entirely new to them.
People-centric resource allocation should be approached as an opportunity to grow and develop your team membersβ skills.
<sme-box>
<sme-color=βpurpleβ>
<sme-image>
</sme-image>
<sme-author>
Jason Fisher
</sme-author>
<sme-position>
Co-Founder and Global Studio Director at Flight Story
</sme-position>
<sme-quotes>
Jason Fisher is the Co-Founder and Global Studio Director of Flight Story, a marketing and communications company.Β
When his resource management tool (yes, itβs Float) revealed that some team members were almost exclusively booked on one particular type of project, he decided to change things up.
Now, Fisher strategically schedules and manages team membersβ jobs and projects so they can gain exposure to various aspects of their roles and explore different parts of the business.Β
His entire team uses Floatβs visual Schedule dashboard to see everyone elseβs availability and skills, so they can reach out to any underallocated coworkers for assistance. Team members are also encouraged to volunteer their help work on deliverables that pique their interest when they have nothing firmly booked, putting them in the driverβs seat of their own career progression.Β
π Find out more about how Flight Story uses Float for resource scheduling and allocationΒ
</sme-quotes>
</sme-box>
Resource allocation vs. task allocation: whatβs the difference?
Weβve been talking about resource allocation for a while now, and you may have noticed that the concept of a βtaskβ hasnβt come up once. Thatβs because resource allocation is not the process of assigning project tasks to people. Hereβs how they differ:
Resource allocationΒ
Resource allocation involves allocating the right peopleβs timeβin hours or percentagesβto projects that match their skills. Take a look at the example below: this creative agency has been tasked with the project of creating a print ad for the new Bose boombox, which will require 60 hours spread across the next 15 days.
In this way, a project is the high-level view of where your teamβs attention will be focused on for the following weeks, months, or quarters.Β
Resource allocation should ideally happen in your resource management tool, like Float, where your teamβs skills, interests, and availability are visualized.
Task allocationΒ
Tasks are the individual activities involved in each project that you can log billable time against. Continuing with the creative agency/Bose print ad example above, your tasks might include copywriting, illustration, design, proofreading, and client review.
You should ideally allocate tasks in your project management tool, like Trello or Asana, where your teamβs activities and time logs are stored.Β
(That said, most resource management tools, including Float, do allow you create and track time on tasks, too. Video and animation agency Storm+Shelter were able to replace Asana and Everhour with Float, keeping their project and task allocation in one place.)
<tip>
π Note: because they serve different functions, we believe that having both a resource management tool and project management software in your tech stack is vital to project success and business growth. Take a look at our list of the best resource management software curated for you, complete with feature and pricing comparisons.
</tip>
4 signs you need to improve your resource allocation
Poor resource allocation can be glaring (bottlenecks that stall a project) or very subtle (overworked team members).
- π§ Too much context switching: if a team member is regularly jumping between different projects and trying to juggle a lot of work at the same time, the result will likely be subpar work and an unhappy, exhausted team member
- π§ Frequent bottlenecks: when projects are stalled because the necessary resources are unavailable, the next phase is blocked, resulting in paused projects
- ποΈ Several active projects: too many projects taking place simultaneously can be a sign of inefficiency. Taking on projects without adequate capacity planning can lead to the first two problems of bottlenecks and context switching.
- π No unified view of team capacity: if you donβt know what people are working on, or what kind of resource utilization rate youβre dealing with, you have no way of knowing how well or poorly your people are being managed
4 common resource allocation problems (and how to handle them)
Even if you adopt all the right tools and follow resource allocation best practices, youβll probably still run into some challenges of resource allocationβitβs the nature of the beast. But when these hiccups do happen, you can definitely know what to expect and be prepared.Β
1. Project scope changes
You did your best to plan resources for your upcoming deliverables, but thereβs still the chance of scope creep. Maybe the project was more extensive than expected or required skills you didnβt account for.
When this happens, you need to be nimble and adjust your resource planning accordingly. Hereβs how:Β
- Ensure project scopes are always transparentΒ
- Set clear and defined project goals
- Strive to do your best work, but donβt be a perfectionist if it will cause delays
- Build a work plan that guides your course of action
- Create a system that allows workers to greenlight change requests and revisions
- Monitor project team performance to ensure everything is on track
- Use all the tools at your disposal to speed up project progress
2. Resources become unavailable
Weβve already listed plenty of reasons a team member may unexpectedly be unavailable (a sudden bout of sickness, a time-zone change), and there are hundreds more where those came from.Β
You can prevent this lack of resources in the future by looking at your allocation dependencies now.Β
Investigate other responsibilities team members have that may pull them away from the project, like internal training initiatives or a company-sponsored volunteer day. Itβs also always a good idea to have a backup resource allocation strategy in place for these types of eventualitiesβone easy option is to have a pool of reliable freelancers you can count on to fill in gaps fast.
<tip>
Pro tip: simplify allocation with a dedicated resource management tool
Itβs worth getting on our soapbox and mentioning again: a purpose-built tool like Float lets you filter and sort team members by skills and capacity and stay on top of any upcoming time off to determine who is best suited (and available!) for upcoming projects.Β
Plus, if a project isnβt 100% confirmed yet, you can still schedule tentative projects and tasks to estimate timelines and allocate your teamβs time accordingly. This way, if a particular skill is unavailable, youβll have more than enough time to find an alternative.
</tip>
3. Resources need to be shared
Itβs common for projects to share the same resources; this is especially true in smaller organizations that canβt afford to hire an extensive staff roster. Shared resources can lead to issues that bog down the pipelineβand project bottlenecks may occur if people are spread too thin.
Resource management software helps you spot gaps in advance. Closely monitor the workloads of team members who move between several departments to prevent resource overallocation and burnout.
<sme-box>
<sme-color=βgreenβ>
<sme-quotes>
π Note: sometimes, even with careful, strategic planning, a project team might need to put in extra hours because you simply donβt have enough resources. While itβs not ideal and should always be a last resort, it happens. To prevent your team from getting too overwhelmed:
- Try to limit the extra workload to a short time to avoid exhausting your team
- Talk to your team about why the extra time is needed and what steps youβll take to manage the workload, like finding extra help or hiring freelancers
- Make an effort to find extra support to lighten the workload for your team
</sme-quotes>
</sme-box>
4. Unexpected delays occur
A delay can hit when you least expect it. People get sick, labor shortages arise, and miscommunication happens. Thatβs when scope creep may rear its ugly head. Some issues are within your control; others, not so much.
The easiest way to manage potential delays is toβ¦ prevent them in the first place (easy! π ). Do this by:
- Scheduling projects based on skill, not just time: an expert or specialist works faster, so use your resource management tool to create custom skill tags for team members and find the right person for the job in seconds
- Avoiding overallocation: team members should never be bogged down with too many other priorities, especially if a project depends on them to move through the pipeline
- Offering flexible hours: some employees work more productively outside of traditional working hours (as an async, distributed team, we can vouch for thatβthis article is being edited at 9pm in South Africa! πΏπ¦)
- Mapping out project timelines: break them into phases and track project progress. Software helps to pinpoint potential delays before they become bottlenecks.
The more organized and transparent your resource allocation, the easier it is for everyone to take accountability for their role.
Profitability starts with happy people
At the heart of our approach to people-centric resource allocation is the belief that team members are our greatest asset. And as a people planner, youβre in the unique position to foster healthy, happy teams who are motivated to do their best work every day. It all starts with a resource allocation plan that puts people front and center.Β
Want to get started? Sign up for a free trial to give Float a try.
<cta-box>
<image-color="blue">
Allocate resources with the #1 rated resource management software
With Float, you can plan your projects and allocate resources with confidence. Try it free for 14 days, no credit card required.
<cta-button>Try for free</cta-button>
</cta-box>
<hr>
<sme-box>
<sme-color=βpinkβ>
<sme-quotes>
π Everything else you need to know about resource planning
Resource allocation is just one part of the resource planning processβwe have a lot more to share with you: π
- The ultimate guide to all things resource planning, with steps to create a plan of your own
- A handpicked list of seven free resource planning templates to use right away
- Resource loading best practices to keep team membersβ utilization at healthy rates
- Steps to build a solid resource scheduling process for visibility into your teamβs time
- A tactical how-to guide to set up an accurate resource forecasting process
</sme-quotes>
</sme-box>
β
FAQs
Some FAQs about resource allocation
Resource allocation is the process of assigning and managing assetsβsuch as people, tools, and budgetβnecessary for completing tasks and achieving project objectives. In agencies and professional services businesses, it involves effectively distributing team members (employees, contractors, freelancers) to various client projects and internal tasks to optimize productivity and client satisfaction.
The benefits of resource allocation include:
- Team members are used to their fullest potential, increasing their efficiency and contributing to their overall job satisfaction
- Allocating the right skills to the right tasks ensures high-quality deliverables
- Well-planned resource allocation helps streamline workflows, making processes more efficient and reducing delays
- Team members have more balanced workloads, which prevents burnout and overworking
- Businesses can stay agile by quickly reallocating resources in response to changing project demands
- Matching tasks to employeesβ skills and development goals fosters a culture of continuous learning and growth
- Allocating resources in line with strategic goals ensures that team membersβ efforts are focused on achieving key business objectives
Leadership plays a crucial role in effective resource management, helping the team to achieve maximum project success by:
- Setting clear goals and priorities for resource allocation
- Providing guidance and direction to ensure resources are allocated effectively
- Empowering teams to make decisions and take ownership of resource allocation
- Monitoring progress and providing support or intervention when needed
- Encouraging collaboration and communication among team members
Most of our customers switch from using spreadsheets or project management tools for resource allocation because they encounter one (or all) of the following:
- Their team grew and the spreadsheet became inadequate
- They need to do a lot of manual updating
- They couldnβt gauge availability of resources accurately
If you can relate to these, it means you too might need to switch to a resource management tool like Float.