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Resource Allocation: Definition, Pros, Cons, Guide, and More

Are you looking to know everything about resource allocation and what role it plays in your life? You have come to the right place. Here is everything you need to know about resource allocation.
resource allocation

According to a survey, poor resource management can lead to up to 11.3% resource loss for companies. Project management is not as easy as it seems. Effective project management demands the most acceptable strategy to maintain the workflow. One of the basic rules and strategies of project management is resource allocation.

Resource allocation is assigning a specific project to the right resource. This guide will cover everything you need to know about it. So, continue reading to learn more!

What is Resource Allocation?

If you are confused with the resource allocation, let’s start with the resource allocation definition, which is as follows:

‘Resource allocation is the process of assigning the task to the resources depending on their availability to maintain the workflow in a most effective and economical method.’

Resource allocation is the most crucial part of project management. According to the resource allocators, the most challenging task is project management. It is vital to know that the effective allocation of resources can prevent the overwork of the resources, which can lead to project delays and poor quality.

Who is the Resource Allocator?

A resource allocator is a person whose duty is to assign the projects or tasks among the resources depending on their efficiency and capacity. Resource allocation should be done strategically to maintain a smooth workflow without any hassle.

In a team, a person can work as a resource allocator who has exceptional management and analytical skills. The resource allocator should be aware of the capabilities and capacity of the resources available to prevent overallocation.

What is the Difference Between Resource Allocation And Capacity Planning?

If you are confused between resource allocation and capacity planning, here is the difference between the two so you have a better understanding of resource allocation.

Resource AllocationCapacity Planning
Resource allocation is the process of assigning the work to your resources according to their availability and needs to maintain a smooth workflow.Capacity planning is the process of evaluating the number of resources and the skills needed to complete a specific project.
Resource allocation is done to prevent over-allocation or under-allocation of resources.Capacity planning is done to know about the future requirement of your business or client.
It aims to ensure a smooth workflow with on-time and high-quality deliveries.It aims to ensure that the skill set and resources are enough for the smooth running of your business.

What Are the Benefits of Resource Allocation?

If the allocation of resources is carried out perfectly, then here are the benefits you get in return:

Prevents Over Allocation or Under Allocation

One of the significant benefits of the allocation of resources is that it prevents the over-allocation of resources or under-allocation.

You may suffer economically if the resources are over-allocated more than the project needs. Under-allocation of the resources may lead to the insufficiency of the resource in between the project. By keeping in mind all the aspects of strategic resource allocation, you can expect a smooth workflow.

Increase Productivity

According to a survey, 77% of the workers in the US experience burnouts due to overwork. Overwork can lead to billion dollars loss in their business, but with the correct resource allocation strategy, these losses can be prevented.

When the work is equally managed among the people according to their capacity and abilities, you can expect enhanced productivity and smooth workflow with no disruptions midway.

Boost the Team’s Morale

Workers love to work on the task of their liking. Keeping in mind the interest of the resources and assigning them the work to keep their morale up. The increased morale in return can lead to quality work done with passion and dedication.

Prevent Poor Quality and Delays

The worst nightmare of any project manager is the poor quality of work or delay in the project. The nightmares can become a reality if you are not severe about resource allocation. The efficient allocation ensures that work is equally distributed among the workers, which decreases the chances of delays and poor quality to a minimal level.

How Are Resources Allocated?

If you are looking to allocate resources, you don’t need to worry. Here is how resources are allocated:

Know Your Project

The first step in resource allocation is to know your project. Before starting the process of allocation of resources, here is what you need to ask yourself

  • What is the project?
  • When is the project due?
  • Which skills are required for the project?
  • Which resources are required for the project?

After you are clear-headed about all the details of the projects, you can head to the next step, checking the availability of the resources.

Resource Availability

Resource availability is the next important step in resource allocation. You need to check the resource availability for the project and their demand.

The resources of a company can not be available at all times. The resources for a specific project might be busy on another project or maybe on sick leave. It would help if you considered all the aspects before taking a decision. If the resources are scarce, you may need to hire part-time employees to get the job done.

Discuss the Project With Your Resources

After you check the availability of the project, discuss the project on the relevant resources. You can then assign the project according to their liking and availability.

Your job isn’t done after assigning as things may not go as planned. You should keep track of your resources to prevent project delays; this is where the resource allocation tools come in!

What Are the Challenges of Resource Allocation?

After you are done with resource allocation, you can still face some challenges. Here are some challenges of resource allocation:

Skill Shortage

Even after detailed planning, you can still face the skill shortage problem in the project’s timeline. This mostly happens in small companies where the number of resources and skill pool is small.

Resource Unavailability

One of the most significant challenges, after you are done with the allocation of resource allocation, is sudden resource unavailability. It can be due to many reasons such as employee family problems, health issues, or any other problem.


Miscommunication can also lead to mismanagement after you are done assigning the task. You can avoid miscommunication by using resource allocation software.

Useful Resource Allocation Strategy and Tips

To prevent the challenges of resource allocation, here are some helpful resource allocation strategies and tips you can follow:

  • As a resource allocator, you need to know everything about the projects and the skills involved to finish them. If the resources lack some skill sets, you can hire some part-time resources.
  • Maintain smooth communication with your resources and keep yourself updated about the progress of the task to prevent the late deliveries
  • Keep additional resources as a backup in case of sudden unavailability of the resource.
  • Use tools to manage all the mentioned above tasks in one place.

2 Best Resource Allocation Software

You can overcome the resource allocation challenges by using the resource allocation tools. There is a variety of resource allocation tools in the market, but here are the two you can use to get the best results:


Monday is the best resource allocation software with its highly flexible features. On Monday, you can interact with the resources, check their availability, and assign them to work according to their capacity.

You can also keep track of their progress, and a dashboard view gives a deep insight into the project details so you can plan. Besides the best resource management, Monday has a user-friendly interface and integration with numerous apps to make your work more smooth. It comes in both free and paid versions.

resource allocation software - Monday


Runn is another best software for the allocation of resources. The software has many features which make it the best among all. The features include assigning the task of the resources according to their skill set. You can also search the resource according to their skills and availability, so you don’t over-allocate a resource.

The software gives you a bird view to track the progress and the resource capacity by the time tracker. The Runn comes in both free and paid versions. The free version has some limited features.

resource allocation tool - Runn

Final Words

So that’s all about the resource allocation. At this point, we are sure that you know everything about resource allocation. Resource allocation is a complex and simple process at the same time, but that depends upon you.

If you allocate the resources manually, you can face many problems as keeping track of everything in one go is challenging. Fortunately, resource allocation software is available in the market to help you with resource allocation. With this software, you can keep track of the resources available and their progress and maintain smooth communication.

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