When Do You Need a Resource Manager? Project Staffing in Growing Companies

9.9.2024
 - 
Matti Parviainen

Resource management might seem like a luxury for small businesses, but as your company grows, you’ll realize that getting the right people on the right projects can make or break your success. So, when does a company actually need a resource manager? Let’s explore how this role evolves—from being unnecessary in small teams to becoming absolutely critical in large organizations.

Small Companies: Why You Might Not Need a Resource Manager (Yet)

If you’re running a small business, especially one with only a handful of projects or employees, chances are you don’t need a dedicated resource manager. In these early stages, project leaders, founders, or department heads can usually handle the allocation of people to projects. Communication is simple, and the team is small enough that everyone’s roles and schedules are clear.

However, as the company grows, so does the complexity of managing projects, people, and time. At some point, the need for someone to focus solely on resource management and project staffing will start to become more apparent.

Growing Pains: The First Part-Time Resource Manager

As your company starts to take on more projects and your team expands, you might find that resource management becomes a bit chaotic. Maybe you’re seeing the same people overbooked while others are underutilized. Or perhaps project deadlines are slipping because there wasn’t enough capacity to meet client demands. This is when a part-time resource manager comes in.

In growing organizations, resource management often starts as a shared responsibility. A project manager or operations lead might step in part-time to manage project staffing. At this stage, they’ll focus on making sure the right people are on the right projects and that workloads are balanced across the team. This can work well for a while, but as you continue to scale, the cracks will begin to show.

When You Need a Full-Time Resource Manager

Once you hit a certain size—let’s say a bit over a hundred employees (varies a lot based on your company) and tens projects running simultaneously—a part-time approach just doesn’t cut it anymore. You need someone whose sole job is to keep track of who’s working on what, how much capacity you have available, and where you might have gaps or bottlenecks.

A full-time resource manager will:

  • Stay ahead of staffing needs by forecasting demand and aligning resources.
  • Prevent employee burnout by ensuring workloads are balanced and realistic.
  • Maximize utilization by matching the right people with the right projects, optimizing both skills and interests.

At this stage, you’re no longer just managing resources—you’re making strategic decisions that directly impact project success, employee satisfaction, and profitability. The right resource manager will become your go-to person for making sure that projects run smoothly and people are thriving in their roles.

Large Companies: Multiple Resource Managers for Maximum Efficiency

In larger companies with hundreds of employees and projects across multiple locations, the need for resource management becomes even more critical. At this point, it’s not uncommon to have a whole team of resource managers. Why? The sheer volume of projects and people makes it impossible for one person to manage effectively. Here are some key reasons why large organizations require multiple resource or staffing managers:

  1. Too Many Projects, Too Little Time
    When you have dozens (or even hundreds) of projects coming and going at any given moment, someone needs to maintain a bird's-eye view of everything. A team of resource managers can ensure that every project is staffed appropriately and that no one slips through the cracks.
  2. Specialization at Scale
    As the company scales, so do the complexities of sales, project management, and client demands. Sales and management teams become more focused on their core tasks, leaving no room to also handle staffing. Resource managers take on this critical role, ensuring the right talent is available and reducing the chances of missed deadlines or client dissatisfaction.
  3. Impact on Employee Satisfaction and Retention
    Great resource management is a lot about aligning the right people with the right work. When employees feel valued and are placed in roles where they can grow and succeed, job satisfaction improves, which in turn boosts retention. In larger companies, having a dedicated team of resource managers ensures that each employee’s skills, interests, and development goals are taken into account.
  4. Collaboration Across Teams and Sites
    In big organizations with multiple locations or departments, resource management requires a coordinated effort. A team of staffing managers can collaborate to ensure that inter-departmental or inter-site projects are staffed effectively, building cohesive teams that can work together to achieve broader organizational goals.

Signs That You Need a Resource Manager

Still wondering if your company is ready for a resource manager? Here are some signs that indicate it’s time to invest in this role:

  • Frequent Project Overruns: If your projects are regularly going over budget or deadlines, poor resource allocation could be the culprit.
  • Employee Burnout: Are your team members feeling overworked and stressed? High turnover or employee dissatisfaction could mean workloads are unevenly distributed.
  • Underutilization of Skills: When employees are constantly working on projects that don’t align with their skills or interests, it can lead to disengagement. A resource manager ensures the right people are doing the right work.
  • Consultants leaving: If consultants are leaving because they feel the staffing process isn't transparent, or they're getting placed into unoptimal projects, you might have an issue!
  • Scaling Challenges: As your company grows, managing resources becomes exponentially more complex. A dedicated resource manager can help you stay ahead of the curve and scale efficiently.

Conclusion: When Staffing Becomes a Full-Time Job

In the early days, you might not need a resource manager. But as your company grows, so do the demands on your people, projects, and time. A part-time resource manager can help you through the initial growing pains, but when project complexity and scale increase, it’s time to invest in a full-time professional (or even a team) dedicated to making sure every project runs smoothly.

The right resource manager—or team of resource managers—doesn’t just keep the lights on; they ensure that both employees and projects are positioned for success, ultimately driving business growth and improving company culture.

By bringing on resource management expertise at the right time, you’re not just solving an organizational challenge—you’re giving your company a strategic advantage that will serve you for years to come.

Matti Parviainen photo

Matti Parviainen is the chief product officer at Operating. He's trained hundreds of consultants on what it means to build trust, earn the right to advise, and how to build relationships.

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