What is the uncomfortable truth about resource management?
We unpack it in this month’s webinar!
Most organisations don’t have a resource problem.
They have a capability forecasting problem.
Too often, resource management is treated as a headcount exercise. Organisations hire people, establish teams and then attempt to apply the same recruitment and resourcing processes regardless of whether they need a specialist for five weeks or a permanent capability for the next five years. The result is predictable: projects are delayed, teams become overloaded, costs increase and delivery outcomes suffer.
Why Traditional Resource Planning Falls Short
Project demand rarely remains constant.
New projects commence. Priorities change. Funding shifts. Programs move into more resource-intensive phases. Specialist skills are needed for a short period and then no longer required. Resource demand naturally rises and falls throughout the lifecycle of both projects and portfolios. Meanwhile, permanent workforce capacity tends to remain relatively fixed.
This creates two common problems:
Under-resourcing
When demand exceeds available capacity, organisations often ask existing teams to absorb additional work. People become stretched across multiple initiatives, delivery slows, priorities compete and burnout becomes a real risk. What appears to be a resource cost saving can quickly become a much more expensive delivery problem.
Under-utilisation
When demand reduces, organisations can find themselves carrying capability they no longer need at the same level. Good people become under-utilised and disengaged while employment costs remain unchanged.
Neither scenario typically delivers value.
The Contractor Debate: Cost Versus Value
One of the strongest themes from the webinar was the tendency to focus on cost rather than value.
It’s common to hear statements such as:
- Contractors are too expensive
- We need to reduce contingent labour
- Let’s replace contractors with permanent employees
While these statements are not necessarily wrong, they often solve the wrong problem.
A resource should never be assessed on day rate alone.
A specialist contractor may appear expensive on paper, but if that expertise shortens a project by a month, reduces governance overhead, lowers delivery risk or accelerates benefit realisation, the economics can change very quickly. The more useful question is not:
“What is the cheapest option?”
Instead ask:
“What is the total cost and value of this resourcing decision?”
A Better Approach to Resource Management
Effective organisations move beyond vacancy filling and adopt a more strategic mindset.
Rather than asking:
“Who do we need to hire?”
They ask:
“What capability are we missing and what outcome are we trying to achieve?”
During the webinar, we introduced a practical five-step framework:
1. Anticipate
Forecast demand before it arrives. Understand which projects are starting, where the pressure points will be and what capabilities will be required.
2. Collaborate
Bring together project leaders, PMO representatives, finance, HR, procurement and delivery leaders to create a shared understanding of future demand.
3. Align
Match capability requirements to the timeframe and nature of the work. Determine whether the requirement is permanent, temporary or specialist.
4. Deploy
Choose the most appropriate sourcing model, whether that’s internal mobility, permanent recruitment, contingent resources or specialist consultancy support.
5. Deliver Value
Focus on delivery outcomes, reduced risk and stronger project performance rather than simply managing headcount numbers.
The PMO’s Role
One of the most interesting discussions explored the role of the PMO in resource management.
Because PMOs often have visibility across project schedules, portfolio demand and strategic priorities, they are uniquely positioned to bring workforce planning and portfolio planning together. Resource management should not be a standalone activity. It should be integrated with project and portfolio decision-making.
The Uncomfortable Truth
There is no single resourcing model that works everywhere.
The right answer may be permanent, contingent, fixed-term or a blend of all three.
The organisations that consistently perform well are not simply counting people. They are forecasting capability, understanding future demand and making deliberate decisions about where expertise creates the greatest value.
The goal is simple:
Have the right people, with the right capability, doing the right work, at the right time.
The objective isn’t to minimise contractor numbers or maximise permanent headcount. The objective is to have the right capability available when the organisation needs it most.