Tackling High Agency Spending in Adult Social Care

The preceding year was undoubtedly difficult for the adult social care sector, and the quest for suitable candidates in social care grew increasingly challenging. Fatigued and stressed employees departed the sector in pursuit of roles offering better compensation and job flexibility. For many, this even resulted in early retirement. Consequently, the social care field witnessed a surge in agency costs, compared to the low spend during Covid.

The dynamics of the job market in 2022 tilted significantly in favour of job seekers. Recruitment agencies flourished, witnessing a remarkable boost in their revenues. However, as 2023 dawned, it ushered in a resurgence of high application volumes and the accompanying capacity-related dilemmas. This has spilled over into 2024 with the persistent issue of staff retention, as burnout and turnover rates remain high within the sector. As a result, there is a growing focus on implementing comprehensive support systems and professional development opportunities to ensure the well-being and longevity of social care workers.

Job positions in social care tripled, which begs the question: why, amidst heightened interest and an influx of applicants, does agency spending remain high? Is there a solution to this never-ending predicament?

While the requirement for temporary workers and recruitment agencies to fill critical gaps in provider rosters remains undeniable, the challenge lies in efficiently transitioning these temporary positions into a more sustainable framework. Often, there is a lack of strategic planning in social care, leading to high, unsustainable expenses.

Responsibility for ensuring the responsible utilisation of temporary workers falls upon everyone involved in the social care ecosystem. From making temporary staff feel integrated and facilitating their transition to permanent or bank positions to understanding the financial implications of each passing hour, the onus extends from the CEO to the front-line employees. Everyone must contribute to addressing this issue.

Providers, too, play a pivotal role in curbing escalating agency spending. They can adopt a multitude of strategies, chief among them being the development of a long-term workforce plan aimed at supporting their teams for the future. While there may be no instantaneous remedy for high temporary expenditure, there are various opportunities that can have a great impact over the short, medium, and long term.

Overreliance on agency personnel becomes increasingly untenable in the face of the economic hurdles that Providers confront. Last March, The Guardian reported that one-third of care homes in England had contemplated closure due to escalating costs, and more Providers are reluctantly returning contracts. This crisis extends to charitable and not-for-profit providers who have been eroding their reserves to sustain their operations. Such a situation is far from sustainable in the long term, and for many, not even in the medium term.

The economic state also intertwines with social and qualitative sustainability. The presence of a revolving door of temporary workers profoundly disrupts the continuity of care, leaving those in need with an ever-changing team of caregivers. Is it acceptable for the most intimate needs of our loved ones to be attended to by an ever-shifting cast of strangers? The time has come for a sustainable recruitment and retention plan to tackle the expensive constant need for agency staff.

In conclusion, the rising agency spend in adult social care is a multifaceted issue that requires a cooperative effort from all stakeholders. Providers must adopt long-term workforce planning strategies. A sustainable future for adult social care depends on these measures to ensure both economic and qualitative viability.

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