Abstract:
Purpose – The purpose of this paper is to develop a workforce optimisation model that maximises the
profitability of a knowledge-based service organisation in the quaternary sector.
Design/methodology/approach – An optimisation model that allocates resources from different skillsets
and seniority to projects that are delivered from several geographies has been developed in this paper. With the
objective of maximising the profitability of a pipeline of projects, the model selects which projects to accept and
which not to and indicates how many resources to hire for (or layoff from) each skillset-seniority-geography
combination.
Findings – The paper discusses the model and its scalable nature. Through hypothetical scenarios, it is shown
that the model, using a simple non-linear algorithm, converges to optimal solutions.
Research limitations/implications – The model depends on inputs that are exogenously supplied by the
organisation. The applicability of the outcome is dependent on them. However, on the other hand, it allows for
the alignment of the outcomes with the strategic objective of the organisation.
Practical implications – The paper discusses the multi-dimensional nature of effective human resource
allocation problem. It not only maximises profitability but also allows organisations to strategically screen
projects. With proper calibration and minor modifications, the model may be used to allocate resources across
the knowledge-based industry.
Originality/value – The paper integrates the demand and supply-side problems of workforce allocation to
projects in a novel way to form a tractable model that is pragmatic and applicable.