From time to time, organisations fall into the trap of over-resourcing their employees. However, preventing over utilisation requires more than simply ensuring you have enough employees – it's about fostering long-term planning, cross-team visibility, and crystal clear communication to help you efficiently use their collective abilities.

At Projectworks, we provide software to a wide range of professional services firms to help them troubleshoot the day-to-day running of their organisations. Today, we’ll explore our findings for some of the most common causes for over allocated resources and give you actionable tips to help manage your people moving forward.

Common causes of overallocation of resources

With multiple projects competing for the same resources, and project managers feeling pressure to meet unrealistic expectations, it's easy for companies to end up over-allocating their greatest assets. Unfortunately, manual processes are no friend in this issue, as a minor mistake can cause rippling effects, generating disaster down the line.

Some of the most common causes of resource overallocation are:

• Multiple projects are being juggled at once.
• Project managers using manual processes, such as editing spreadsheets on capacity, which are prone to error.
• There are unrealistic expectations in terms of schedule and budget.

The after-effects of resource overallocation

When resources are spread too thin, projects and the organisation as a whole can soon feel the strain. From decreased morale to missed deadlines due to lack of capacity, overallocation brings with it harsh realities for project success. Not just in terms of finances but also creativity, efficiency and productivity. Here are some of the most significant impacts of overallocation on project management:

Not being able to deliver projects on time

This is an obvious one but it bears mentioning. When teams are overworked, they may not be able to complete projects on time. This can create poor client outcomes and lack of returning client engagements.

Employee fatigue and burnout

When employees are spread too thin, they become unable to keep up with their workloads leading to unhappiness and a lack of motivation. This ongoing stress can eventually lead them to seek employment in other places where an improved work/life balance is offered.

Higher chances of error

Without proper workload allocation, organisations risk delivering subpar products or services that could severely damage their reputation and hamper profits in today's competitive landscape.

Unplanned attrition

When companies ignore their employees' well-being by over-resourcing them on projects, the impact can be ongoing. In 2017, 39% of workers reported that a heavy workload was their main cause of stress - Statista Report via The American Institute of Stress.

Not only will staff become unhappy and disengaged – potentially leading to them seeking out other positions elsewhere - but projects that have been in progress may grind to a halt as resources move on unexpectedly. This can result in costly delays for firms that will then need additional time (and money) to hire an appropriate replacement.

8 ways to avoid resource overallocation effectively

A project manager's role is to strategically utilise resources, avoiding both under and over-allocation. Firms can achieve this with strategies and PSA software to help tasks get completed on time by the right people. Put the following tips into practice for the optimal management of any given project.

1. Set realistic schedules

Don't jump the gun when it comes to taking on ambitious projects. Don't be tempted by quick fixes or risk running yourself too thin: sometimes things don't go according to plan and extra time is required.

2. Understand the project scope

Avoid project scope disasters by being mindful of Scope Creep - the tendency of clients to add objectives and goals beyond what was initially planned. If changes occur mid-project, be sure to shift resources accordingly in your plan and communicate how that will affect the whole project.

3. Know your resources

Unlock your team's potential and ensure you have what it takes to get the job done. Knowing everyone's unique abilities is vital to success: Do they bring specific technical know-how, creative flair or budgeting skills?

If not, are there tools that can be purchased or other talent to hire in order for this project to succeed? Taking time to determine these things now will help ensure a smoother process later.

4. Prioritise

One of the most vital skills of any project manager is assigning priority to each project and the hours within it. This way, they can ensure that resources and time are allocated efficiently, minimising potential stresses along the way.

5. Use time-tracking tools

Are you managing your team's time efficiently? Employ time-tracking tools to measure billable hours worked and identify if someone needs additional training or guidance to get the job done quickly (and effectively).

6. Plan resource availability

Resource scheduling is essential for ensuring your team has the right tools and personnel to accomplish projects. An advanced resource management tool offers incredible insight into current availability, upcoming needs, and skills - providing decision-makers with all they need to ensure each individual is well-rested while everyone else gets ample support.

While this tip requires some investment, the better system will soon pay for itself by providing efficient distribution of tasks across departments without risking burnout or delays.

7. Diversify skills and responsibilities

As tasks become monotonous and energy levels deplete, businesses need to keep their employees motivated. Providing workers with different opportunities allows them not only the opportunity to excel in their current roles but also to develop new skill sets. This is critical when planning who will fill vital positions as the company evolves.

8. Hire based on upcoming workload where possible

Plan work on potential projects before they are signed to get a sense of what is likely to come through to signed work in the pipeline. By tightly collaborating with your business development team, leadership can see in advance which areas of the business they will need to hire.

Solving resource overallocation

Resource overallocation is a tricky problem that many businesses have to manage. Thankfully, being proactive and utilising the right tools can give organisations insight into how best to allocate resources and maximise output during tight timescales.

Projectworks is a business management solution that helps prevent overallocation by allowing users to monitor workloads, track progress, and identify where adjustments need to be made quickly. Utilising our innovative software also helps streamline communication for better collaboration and provides transparency for employees, so they know what is expected of them.

With Projectworks, businesses can take back control of their resources and power through projects more sustainably. Start your free trial and see the benefits for yourself.

start my free trial