Controlling Agency Spend: Essential Tips for Care and Social Care Providers

Care and social care providers face increasing pressure to manage costs while maintaining high quality care. One of the most significant expenses for many organisations is agency spending. 

The Social Care Sector in England

Understanding the sector's composition can help in developing targeted strategies:

• As of 2023/24, the adult social care workforce in England comprised 1.84 million total posts (filled and vacant)
• 79.1% of the workforce is employed in the independent sector
• Domiciliary care services account for 43% of filled posts, while residential services account for 41%
• The sector faces significant challenges, including high vacancy and turnover rates, with a turnover rate of 28.3% in 2022/23

Understanding the Challenge

Agency workers can provide valuable support during labour shortages, but their use comes with significant financial implications. Research by Care England found that almost 80% of providers are using more agency staff than before, leading to increased costs. This surge in agency use is attributed to factors such as pandemic related burnout, staff leaving for better paid roles in other sectors, and competition from the NHS.

Strategies for Controlling Agency Spend

1. Implement Robust Workforce Management Systems

Utilising modern software for workforce management can significantly impact agency spend control. These systems allow managers to:

- Monitor recruitment costs in real time
- Identify spending patterns and unusually high costs
- Pinpoint shifts that frequently require agency workers
- Plan more effectively to reduce reliance on temporary solutions

2. Utilise Technology for Agency Management

Implement specialised software that can:

- Streamline the process of assigning shifts to agency staff
- Provide better visibility into agency usage and costs
- Integrate with internal staffing systems for more efficient management

3. Implement a Neutral Vendor Managed Service

A neutral vendor managed service offers a transformative approach to temporary labour recruitment in healthcare and social care. Key benefits include:

- Centralised agency supplier management
- Enhanced compliance and quality assurance
- Customised workforce solutions
- Data driven decision making
- Seamless integration with existing systems

This service streamlines the process of hiring temporary workers, ensuring compliance with legislative requirements while also saving money.

Conclusion

Controlling agency spend is a complex challenge that requires a multifaceted approach. By focusing on effective workforce management, recruitment and retention, scheduling optimisation, and strategic use of technology, care providers can significantly reduce their reliance on agency staff. This not only leads to cost savings but also contributes to improved care quality and staff satisfaction.

As the healthcare sector continues to evolve, it's essential for care providers to regularly assess and refine their staffing strategies. By adopting a proactive approach to agency spend control, including the use of neutral vendor managed services, organisations can ensure they're well positioned to meet both financial targets and care quality standards in an increasingly challenging environment.