Why reducing your agency spend by moving to an on-framework workforce will improve cost, efficiency and quality

Many trusts are using a managed transition from expensive, off-framework ‘emergency’ staffing to an on-framework, affordable agency supply to meet this requirement. Not only will such a move reduce costs but by working with an effective agency partner, trusts will also begin to develop a sustainable workforce that is fit to deliver safety, quality and efficiency.

With trusts aiming to meet the new agency spend guidance by July, there are a number of ways they can work with an agency partner to increase their chances of success. Together with the current drive within the NHS to tackle care backlogs coupled with record vacancy levels, staffing needs could become a crisis.

By acting now, trusts can get a better handle on their staffing and plan for a sustainable workforce. There are a number of ways you can manage these challenges.

Choose a single agency partner for the transition project

A managed move to on-framework staffing can support cost, safety, quality and efficiency – but you will only get the maximum benefit by choosing a trusted agency partner to drive this agenda.

By picking a single partner you will give a consistent message to workers and have someone to take control of any work being transferred from off- to on-framework. The agency you choose will be able to manage the transition without unnecessary competition – when a single agency is involved, there will be no opportunity for staff to choose to work with those offering the highest rates, diminishing your savings. Not only will a single partner be able to focus on the work in hand, they will also be empowered to manage worker pay

Once you’ve successfully transitioned from off-framework suppliers, your opportunity arrives to reduce the cost of your agency staffing. Working with a key on-framework partner can help you to start replacing higher-cost workers and make better use of lower-cost staff. It’s crucial to choose an agency which is committed to providing the NHS with value for money and with which you share ultimate goals and objectives.

Manage supply to meet demand

Where economic logic says that higher supply reduces costs, unfortunately that just isn’t always the case. If you allow agencies to develop large pools of staff, particularly in niche services, it’s possible that you won’t be able to fully utilise the people available. As a result, staff may receive fewer shifts than they hope for, which may lead to higher charges per shift. Where a limited number of staff are given increased numbers of shifts, your cost per shift should reduce as they are able to earn the money they hope for. Having a smaller number of agency workers will also help improve staff engagement by increasing their sense of belonging.

Building sustainability brings long term benefits

Plan ahead to manage your move to on-framework staffing and you will improve sustainability for the long run. Remember that you will need to serve a 12 week notice under the current regulations to shift people from off- to on-framework. It makes sense to get your rotas out as soon as possible, with the understanding that you won’t know the exact demand for services until diagnostics and consultant decisions on care are in place. For example, you could put in place a rota six weeks ahead of time and for the first couple of months have cancellations for staff up to 48 hours in advance. This will starve off-framework provision. We wouldn’t recommend this approach for the longer term, with arrangements moving to cancellations around six to eight weeks in advance after a few months.

Consider longer bookings for staff or fixed term contracts to take away some of the guess work and manage costs better.

Long term partnership strategies

By partnering with a single on-framework agency, you have the opportunity to build a long term, strategic partnership. The right agency can help you to develop a 12-month plan to include elements such as an overall rate reduction programme and staff retention programmes. With their support, you can drive better utilisation of your agency workers and develop an appealing employee value proposition.

Going one step further, the best agencies should be able to offer you a total workforce solution that brings the permanent, bank and agency workforce planning and management together under one cohesive plan.

The best way to reduce agency spend is to increase permanent recruitment

Over the last year, we placed around 4,000 permanent recruits within the NHS, including through international recruitment. With the highest vacancy rate ever, the NHS is often stymied by the fact that they don’t have a budget for recruitment but can spend on agency staff, which only increases cost in the long run. By working with an agency to focus on permanent recruitment, you can make those savings and develop a more sustainable, engaged workforce.

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