Maximising profitability of quaternary sector organisations through workforce optimisation
Benchmarking: An International Journal
ISSN: 1463-5771
Article publication date: 17 August 2020
Issue publication date: 8 October 2020
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.
Keywords
Acknowledgements
The authors acknowledge the comments by the anonymous reviewers that helped them improve the paper.
Citation
Ghosh, A., Kundu, S., Ghosh, P. and Dutta, T. (2020), "Maximising profitability of quaternary sector organisations through workforce optimisation", Benchmarking: An International Journal, Vol. 27 No. 10, pp. 2785-2806. https://doi.org/10.1108/BIJ-01-2020-0034
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited