Record Revenues for Temporary Staffing Agencies - A Sustainable Arrangement?
As the future shape of the UK’s healthcare system becomes increasingly uncertain, demand for temporary and short-term staff has skyrocketed, with demand for skilled healthcare workers now far outstripping the available supply in many provisions. During this difficult time, made all the more desperate by lingering COVID backlogs and significant shortcomings in community care provisions, temporary staffing agencies have filled the void, for better and for worse. In Agency Portal’s inaugural blog post, we discuss the factors which have and continue to contribute to the current care landscape, what makes an ethical and effective temporary staffing provider, and how to build a sustainable, reputable business which works for patients, service users, and the NHS.
In 2021, a BBC News report revealed that total public spending on agency staff had increased 20% over pre-pandemic levels, bringing the total spend in that year to over £3 billion, and this trend has only continued in the years since. Among the largest providers of temporary staff, which include large multinational corporations like Independent Clinical Services and Medacs Healthcare, gross revenues have increased by up to 80%.
Though fee caps exist, many in the NHS have expressed that such measures do not go far enough in regulating the ballooning costs to UK taxpayers, and NHS messaging makes it clear that a decrease in expenditure is crucial to the future sustainability of the nursing and care systems. The exceptions to spending caps, such as in the cases of filling emergency, high-priority roles at short notice, have resulted in NHS Trusts paying upwards of £5,000 for a single shift by a freelance doctor, according to a Freedom of Information request by The Labour Party.
The solution to this problem, according to Sir Julian Hartley, chief executive of NHS Providers, is long-term planning and a willingness on both sides to convert short-term, rota-filling placements into long-term or permanent positions wherever possible. Sir Hartley notes that in the long-term, ‘[reducing] the reliance on agency staff’ should be the goal of NHS Trusts nationwide. How, then, can staffing agencies hope to grow sustainably and provide for an ever-evolving market?
The key is to operate a temporary staffing business which prioritises adaptability and exceptional service at all levels of its operational strategy. A person-centred commitment to care, and understanding that the public sector’s desire to break away from exorbitantly-priced emergency placements means that integrity and strong, transparent relationships with commissioners and NHS Trusts will serve a business better over time will create a far more sustainable path to success than chasing only the highest-ticket placements and operating purely for profit.
From the perspective of Trusts and local authorities, operating robust procurement frameworks and assessing tenders from smaller and independent providers can also reduce the financial burden of filling short-term and emergency vacancies. By allowing for open tendering, councils are able to assess competitive offerings by local providers alongside those from large corporations like ICS and Medacs, and accordingly, providers of temporary staff in the health and social care sectors should be keen and on the lookout for opportunities to join purchasing frameworks and submit tenders to local authorities to sell their services.
As such, a reputable temporary staffing business should be prepared to convert short-term placements into longer-term arrangements where appropriate, as this allows NHS Trusts and care providers to formulate sustainable care strategies and ensure a greater level of continuity in the services they provide to clients.
The temporary staffing industry in the UK still presents unparalleled opportunities for new providers to address the staffing challenges faced by the public health and social care sectors. By understanding the regulations, building a strong talent pool, nurturing client relationships, embracing technological innovations, and staying informed about industry trends, you can position your temporary staffing agency for the best chances of success. Ultimately, agility, adaptability, and a commitment to exceptional service are the keys to thriving in this dynamic sector.
Agency Portal works to streamline your HR processes and make scheduling shifts for your employees a breeze. With cutting-edge, innovative features developed specifically for temporary staffing providers, Agency Portal allows you to book, edit, cancel and share shifts and information with your team on the fly. And with our handy mobile app, anywhere can be your office! Why not get in touch with the team today on 0330 808 3871 and learn more?