Project Staffing on a Budget: 14 Critical Things to Remember (2024)


Think about project staffing on a tight budget. Many businesses find it a difficult task. Businesses need to be able to find the right balance. When assigning staff or budget to a project, ensure that the company makes the best use of people’s skills. And makes the best use of company resources too. Look at the scope of the project. Establish a time frame. Provide a good starting point for planning and scheduling. But think about other considerations to keep in mind too. Find out more. We asked members of the Young Entrepreneur Council (YEC) the following:

“What is an important thing to remember when figuring out how many people need to work on a project, especially when resources — including time, money, or the number of people available — are tight?”

Project Staffing on a Tight Budget

Consider what YEC community members say about project staffing on a tight budget:

1. Phase In Your Staff as Needed

“Many projects go through phases that require different skill sets at different times. For instance, if you’re launching a new product you’ll have engineers, designers, and product managers involved heavily early on, but as the product becomes finalized and goes to market, you can then phase out most of the engineers and bring in more marketers and salespeople to push the product.” ~ Andy Karuza, FenSens

2. Select a Project Leader

“When creating small groups for a project, take someone who has a lot of experience with past similar projects. Take them aside and ask them how many people they think they’ll need to complete the project in a timely manner. If you’re tight on resources, explain that to them and find out the essentials needed to complete the project on time.” ~ Andrew Saladino, Kitchen Cabinet Kings

3. Look for Team Members With Strong Problem-Solving Skills

“One characteristic that is highly valued in our company is the capacity our team members have to solve different problems in less time. When the time comes to make teams, we allocate the ones who are ready to handle any difficulty as project leaders.” ~ Alfredo Atanacio, Uassist.ME

4. Make Sure Staff Are Reliable and Time-Conscious

“When resources are tight, you’d need your best people forward. Staff who have the skills, experience and excellent work history to show for it are more coachable, time-conscious, and have the wealth of knowledge that’s critical for weeding out strategies that don’t work. If you can’t afford to do trial and error, then you need people who don’t have to.” ~ Diego Orjuela, Cables & Sensors

5. Watch for Scheduling Issues

“Consider the other projects that are going on at the same time. If the latest project needs a certain team member but they are wrapped up in something else, this can present issues. Plan the project for a time when that team member is able to give their full attention.” ~ Stephanie Wells, Formidable Forms

6. Create a Budget Beforehand

“If you want to see how many employees you can have on one project, create a budget. This will show you how much money and resources you’re working with so you can have the right amount of people working on it, while knowing that they’ll get the job done effectively. If you don’t have the budget to do a good job, it’s best to move on to something else.” ~ Chris Christoff, MonsterInsights

7. Seek Employees’ Input

“Before deciding on a group for a project, ask your employees for their input. For instance, maybe you’ve already chosen a project leader so you can ask them which team members would work well on the team, how much time they think the project will take, and so on. Getting a second opinion will give you a better idea for how to build a project team that works.” ~ John Turner, SeedProd LLC

8. Gauge Their Expertise and Responsibilities

“You need to properly gauge your team members’ individual levels of expertise and how much responsibility they have when calculating how many people to put on a project. This is how you’ll determine what each person can handle and what level suits their expertise so you aren’t wasting resources, money or time.” ~ Jared Atchison, WPForms

9. Balance the Urgency of Each Project

“It is very important to know the strengths and weaknesses of your team to properly allocate them to certain tasks. Efficiency is number one when it comes to running a profitable company. In order to attain maximum efficiency, you need to balance the urgency of each project that you are working on based on due date, potential profit, and current schedule.” ~ David Chen, Sharebert

10. Ask About the Need for Ancillary Help

“You shouldn’t just guess. Make sure the people with the top skills needed to complete the project are assigned to it and add in extra ancillary help if necessary. Consult with your top folks to see how many “extras” are needed. If the answer is “none,” go with it. They’re not going to tell you that more are needed if they aren’t, and they’re not going to say that extra help isn’t needed if it is.” ~ Andrew Schrage, Money Crashers Personal Finance

11. Empower Mid-Level Managers to Make Assessments

“Delegate and empower the mid-level managers to make these decisions and organize support, then manage your managers through timelines and metrics critical to project success. Upper-level managers are further removed from the day-to-day operations and their “estimate” is likely to be less accurate than a mid-level manager who understands what goes where and how. Trust your team and your structure.” ~ Matthew Capala, Alphametic

12. Establish Accurate Time Estimates

“Accurate time estimation allows you to know how long tasks will take and the number of people you will need to complete the work. Project managers should identify all tasks that need to be completed, as well as time that will be spent on meetings, communications, tests and reports. Without doing this first, time will get wasted and projects won’t get completed on time or within budget.” ~ Blair Thomas, eMerchantBroker

13. Have Teams Self-Report

“Have your teams estimate their own resourcing needs. And build in a system where they report back to themselves and the broader team on their progress. By doing this you create more buy-in from your staff. Because they tell you how long or costly something will be. In turn, this makes them more accountable. And excited to celebrate the win of hitting the goals they set for themselves.” ~ Tony Scherba, Yeti

14. Remember: More People Doesn’t Always Mean Faster

“When staffing a project, always remember that having more people assigned to it does not always mean it will go faster. When our clients ask to have more developers put on their software project, we often use the analogy of painters painting a room. If you have a small room, shoving 10 painters in there instead of two won’t make it go any faster; rather, it’ll likely slow it down.” ~ Keith Shields, Designli

Image: Depositphotos.com

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Project Staffing on a Budget: 14 Critical Things to Remember (2024)

FAQs

What is the budget for staffing? ›

A staffing budget is money organizations allocate towards their full-time employment, contingency, and temporary labor resources over a 12-month fiscal year.

How to set a staffing budget? ›

Effective staffing budgeting starts with comprehensive workforce planning. Companies should analyze their current and future staffing needs, taking into account factors like growth projections, seasonal fluctuations, and skill gaps.

Which of the following is not a method of creating a project budget? ›

The option that is not a method of creating a project budget is: Actual budgeting.

What does it take for a project manager to ensure a project stays on track and on budget? ›

Regularly monitoring and updating your project plan is essential for staying on budget and schedule. Beyond the initial plan, frequent check-ins, real-time tracking, and key performance indicators (KPIs) provide real-time insights into project health.

What is the formula for staffing requirement? ›

Step 1: Number of rooms multiplied by number of hours per day multiplied by number of days per week = total hours to be staffed per week. Step 2: Total hours per week multiplied by number of people per room = total working hours per week. Step 3: Total working hours/week divided by 40 hours worked/week = basic FTE.

What is the basic staffing plan? ›

A staffing plan is the roadmap each business unit follows for current hiring needs. Roles are identified, the skills needed are listed, budgets and training are included, as well as succession planning.

What is the budget based staffing model? ›

Budget-Based Staffing: In the budget-based staffing model, nursing staff are allocated according to nursing hours per patient day (aka the average number of hours needed to care for each patient on a given unit).

How do you calculate staffing cost? ›

In summary, add together the employee's gross annual pay, annual payroll taxes, and total additional annual expenses to get the total annual employee cost. You can further divide this by months or hours to determine the employee's total monthly or hourly cost.

How do you budget staff costs? ›

Tips for creating a payroll budget
  1. Create a list of employees and their positions. ...
  2. List the various payroll expenses for each employee. ...
  3. Forecast salary expenses first. ...
  4. Budget for nonexempt employees separately. ...
  5. Estimate additional payroll.
Aug 22, 2023

What are the 4 four project budget management steps? ›

What is project cost management?
  • Resource planning. While resource management is in place to plan, allocate, and schedule the resources needed for each stage of a project, resource planning looks specifically at the costs associated with each of these resources. ...
  • Cost estimation. ...
  • Cost budget. ...
  • Cost control.
Mar 18, 2022

What are the four 4 main types of budgeting methods? ›

There are four common types of budgets that companies use: (1) incremental, (2) activity-based, (3) value proposition, and (4) zero-based. These four budgeting methods each have their own advantages and disadvantages, which will be discussed in more detail in this guide.

What are the project budgeting techniques? ›

Project Budgeting Techniques
  • Analogous estimating. The analogous cost estimation technique involves determining the costs based on experience and historical projects. ...
  • Three-point Estimate. ...
  • Earned Value Analysis. ...
  • Parametric Estimating. ...
  • Bottom-up Method. ...
  • Top-down Method.
Feb 19, 2024

How do you ensure that a project stays within budget? ›

8 Tips to Keep Projects Under Budget
  1. Define the scope of the project.
  2. Define the necessary resources.
  3. Set a realistic project budget.
  4. Track time spent on tasks.
  5. Track expenses per project.
  6. Anticipate and revise changes.
  7. Communication, communication, communication.
  8. Utilize Project Management Software.
Mar 13, 2023

What common problems can a project manager avoid by escalating an issue? ›

Project managers should escalate an issue when it is beyond their control or responsibility, affects the project scope, schedule, budget, quality, or benefits, involves a conflict or disagreement among key stakeholders, requires a change request or a deviation from the project plan, or poses a significant risk to the ...

When budgeting a project, what is the responsibility of a project manager? ›

The project manager plays a critical role in budgeting by: - Developing the project budget - Monitoring and controlling project costs - Communicating budget information Overall, the project manager's role in budgeting involves planning, monitoring, controlling, and communicating financial information to ensure the ...

What is the average cost of staffing? ›

According to Hadzima, once you have taken into consideration basic salary, taxes, and benefits, the real costs of your employees are typically in the 1.25 to 1.4 times base salary range. In other words, an employee earning $30,000 will actually cost an employer somewhere between $37,500 and $42,000 to employ.

What is the average recruiting budget? ›

“Cost-per-hire depends on company size and number of hires. Larger companies making a lot of hires can keep the cost lower than smaller companies. But, generally, aiming for an average cost-per-hire between $3,000 and $5,000 is good practice.”

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