Marr Procurement is
the UK’s Care Sector Procurement Specialist, with an established sourcing model
across a wide range of spend categories. We work closely with our care sector
clients of all sizes to reduce costs, and to date have sourced a total spend of
£300M on their behalf.
understands well the pressures of the sector, and recently hosted two workshops,
with Neil Eastwood from Sticky
People, where we brought together existing and prospective clients to discuss
the issue of Temporary Labour Agency staff. This is a key cost and operational
issue for our clients, and as a result is the most common cost saving project
we work on.
Delivering savings in Temporary Labour is complex as the
costs cannot be looked at in isolation from other key concerns such as:
securing staff with the right quality and experience, compliance with all applicable
regulations, fulfilment issues in certain geographies etc. All of this needs to
be looked at in the round, and in the course of many such projects Marr Procurement
have gathered important ‘lessons learnt’ to benefit our clients at every step
of the Temporary Agency cost reduction journey.
Here are a few key pointers for any organisation starting
such a programme.
1. Planning the
Programme: Any project to deliver savings in Temp Agency spend must
consider both the “Supply-side” – ie how the Temporary Labour is sourced and
what rates are paid to both staff and agencies, as well as the “Demand-side” –
ie what is driving the need for the Temporary Labour staff in the first place.
These are separate but related strands of the same project, and must work in
tandem if material savings are to be achieved.
2. Supply-side first: Always start with
tackling the Supply Side first – get the sourcing model right for your
organisation, and negotiate good rates. There are several Supply Side agency
models with different benefits/issues:
A. Proliferated Model -
where lots of agencies work with various operational sites.
B. Master Service Vendor
Model – where all agency requirements are channelled by the client through
one large agency
C. Neutral Vendor Model
– involves engaging with an independent third party who manages the agencies
and audits them.
D. Hybrid Model – where
the fulfilment effort is performed in-house by the client and outsource the
online timesheet system.
It will be important to choose the right model for your
organisational needs and requirements.
Marr Procurement have experience of all these models and can
help recommend what would work best for you.
3. Controlling the
Demand-side: Once the Supply-side has been tackled, it is important to understand
that over time the largest savings are likely to come from managing down the demand
for Temporary Agency staff. In essence this boils down to 3 things:
i. Understanding your current Temporary Agency usage and spend levels
The availability of detailed
Management Information is critical here – getting the right reports with the
right frequency is the key ingredient;
ii. Reducing your staff turnover
Keeping good staff is key in all
organisations. There is much research on the impact of improvements in areas
such as training and even onboarding/Welcome processes which can radically
reduce turnover rates;
iii. Improving the success rates of your recruitment efforts
Finding the right staff and
keeping them is key to this. From simplifying application forms to employee
referral schemes, there are many steps your organisation can take to make your
recruitment processes more targeted and impactful.
For best practice advice on reducing staff turnover and
improving recruitment, we recommend the book ‘Saving Social Care’ by Neil
Meanwhile Christoph Marr and Neil Eastwood will together be
running a Temporary Labour workshop at the upcoming NCF Conference in June.
Please join us at this event to hear more about our thinking on this important
issue. If you are not able to attend the Conference but would still like to
understand more about our approach to reducing Temporary Agency spend, and how
we might be able to help you and your organisation, please visit www.marrprocurement.com or
contact Christoph Marr on 01206 382888 or by emailing Christoph.firstname.lastname@example.org.
We look forward to hearing from you.