When it comes to addressing staffing needs, particularly in recruiting and managing temporary staff, the NHS can learn valuable lessons from local authorities. Over the years local councils have honed their approach to workforce management, particularly in the use of temporary workers and the NHS would be wise to adopt some of these strategies.
The reality is that the NHS's approach to temporary staffing is outdated and fragmented. Despite the increasing need for flexibility within the workforce, NHS trusts are still largely relying on traditional agency models or banks of workers that do not fully meet the needs of today’s healthcare professionals.
It’s no secret that more and more healthcare professionals are opting to work through agencies or on a temporary basis for the simple reason that it offers them flexibility. Many are choosing temporary work to accommodate personal commitments, travel or the desire for a better work-life balance. Yet, the NHS has not yet fully embraced the idea of creating a permanent structure that supports true flexible working.
This is something that local authorities have addressed with significant success. One of the reasons councils have been able to manage their temporary workforce so effectively is their adoption of a neutral vendor model - a strategy that has allowed them to centralise their staffing processes and bring transparency to spending, pay rate control, and agency management. In fact, Matrix has worked with 85% of UK councils managing over £1.2b (£403m in care) worth of spend a year, and we’ve seen firsthand how this model has allowed them to streamline operations and control costs saving circa £39m a year, £17.5m in care roles.
The NHS could benefit significantly from adopting a more streamlined staffing approach. Currently, NHS trusts face challenges due to the fragmented nature of their staffing solutions. The involvement of multiple agencies leads to a lack of transparency, inflated pay rates and reduced control over staff allocation. Pay rates are set by the client or agency at the start, with agency margins decreasing by 20% after 12, 26, or 52 weeks to achieve savings. The current process involves an initial attempt to fill gaps through internal bank staff, followed by sending the order to specialist agencies. Closed-off panels of trusted partner suppliers are then set up to ensure that the best staff are selected, aiming for further cost reductions. However, this system results in unnecessary costs and inefficiencies. By contrast, a neutral vendor model, such as the one used by local councils, centralises temporary workforce recruitment through a combination of single points of control, and hiring support and intelligent enabling platforms offering greater transparency, cost efficiency, leveraging a broader and more diverse set of supply channels and improved staff allocation.
With a central recruitment process managed through a single, experienced and objective workforce partner, NHS trusts could benefit from real-time and historical data which would allow for better benchmarking of pay rates as part of our real time interactive BI Tool and prevent overreliance on specific agencies. Additionally, NHS boards and budget holders would have visibility into agency spending allowing them to identify inefficiencies and control costs. This kind of transparency is crucial especially as NHS employers face increasing pressure to manage budgets tightly as they can see the total cost of a placement before they start. And, have a non-biased partner with aligned interests to manage both the quality and cost of worker engagement.
Moreover, one of the key benefits that local councils have gained from their staffing approach is the ability to pre-screen workers thoroughly. In a sector where safeguarding is paramount, having a workforce management partner that can handle the pre-screening of workers - checking everything from criminal history, right to work validation to social media activity- is a major advantage. This level of scrutiny provides a level of security and trust that the NHS should be striving for in their own staffing processes.
By working with a service partner that offers a full-service solution - complete with proprietary technology that allows for flexibility and customisation - NHS trusts could create a fit-for-purpose workforce that isn’t just focused on filling shifts but on providing quality complaint candidates which allows the NHS to focus on delivering the best potential patient care. The technology used by many local authorities and private sector employers in managing their contingent workforce allows for this kind of agility.
I believe that It’s time for NHS trusts to move away from the current model where temporary workers feel disconnected from the broader workforce and adopt a solution that offers real-time data, compliance, and cost control. A sole neutral vendor partner, such as the ones employed by local councils, could provide the NHS with a cost-effective, efficient route to managing temporary staff. It’s not a quick fix for the staffing crisis, but it provides a strong foundation for better decision-making, transparency and efficiency.
There is no doubt that the NHS can learn a lot from local authorities when it comes to workforce management. By adopting a more centralised, data-driven and transparent approach NHS trusts can gain better control over their temporary staffing needs, reduce costs and ensure that their flexible workforce is truly fit for purpose. At Matrix, we’ve seen the success of this model across councils and we are confident that it can offer the same benefits to healthcare organisations.
