Reducing agency staff procurement and spend

The problem

Finding and keeping high-quality staff is a huge problem for councils nationally, not just Shropshire. It’s an issue that is particularly true of social care workers, who are in huge demand across the country – and rightly so, because of the complex and professional nature of their work. Unfortunately, the recruitment marketplace is such that we have to source a lot of staff from agencies – often on short-term contracts, often with the employment agencies themselves taking very high rates of commission. In short, we’re over-reliant on agency workers, which is ridiculously expensive.

It's not just the question of expenditure that we need to address, although spend on agency staff has ballooned over recent years; it’s also the question of quality and consistency. We need colleagues who will stay with us for the long term, and who believe in who we are and what we’re trying to do. So we’re also working on ways to communicate that shared sense of purpose in the recruitment marketplace: helping the 343,000 people of Shropshire to live their best lives.

What is the reducing agency staff procurement and spend project?

The reducing agency staff procurement and spend project is just that: we’re examining how we can manage – and reduce – our spend on agency staff. That’s the short-term aim; in the medium- to long-terms, we need to reduce our dependency on the agency model full-stop, and explore more efficient ways of recruiting high-quality, professional and motivated staff. To that end, we’re also developing our ‘shop window’ – that is, our whole recruitment offer, from what goes on the website, to how we communicate on LinkedIn.

Why does the project matter?

Because we must reduce our spend as a council; and because we must recruit and retain the people who are committed to our shared purpose. The two points go hand in hand. Last year, our agency staff expenditure rose to over £10 million – this is utterly unsustainable, and the success of the project will make a substantial contribution to the overall financial aims of the council. Similarly, by improving our overall recruitment and retention offer, we aim to become an employer of choice – we need more people who share our commitment.

How will the project be implemented?

We’re currently reviewing our existing contract and other supply arrangements to ensure value for money, and the sourcing of people who want to work with us. We’re also looking at alternative ways of sourcing staff, though the recruitment market is very tough at the moment. The longer-term aim, of course, is to dramatically reduce agency spend, but in order to do that, we need to massively improve the way we recruit: that means our processes as well as our offer.

Who is involved?

Executive directors, procurement services, HR, and PwC. In due course, we’ll be talking to managers throughout the council to canvas their views.

When is it happening?

Now. We’re already analysing our current expenditure and supply arrangements. In the very near future, expect to see agreed spend controls and governance for financial year 23/24, which will help us manage immediate financial challenges; expect new supply arrangements later in the year. Plus, work is well underway on our recruitment and retention offer. Watch this space!