The Positive Impact of Healthcare Agencies and the Need for Fair Reform

The role of healthcare recruitment agencies in the UK is often misrepresented, with much of the discourse focused on demonisation rather than appreciation of their contributions. While agencies are frequently blamed for rising NHS costs, the reality is far more nuanced.

Agencies provide vital flexibility, ensure staffing gaps are filled quickly, and support workforce planning in ways that staff banks and other models often fail to match. At Globe Locums, we work within NHS-approved frameworks to deliver cost-effective, high-quality staffing solutions.

At the same time, current workforce policies and funding decisions are leading to inefficiencies and increased taxpayer burden. Issues like the hidden costs of staff banks, politically driven insourcing, and cuts to overseas recruitment are not being adequately addressed.

The True Cost of Staff Banks vs. Agencies

There is a common misconception that shifting agency spend to NHS staff banks saves money. This oversimplification ignores several key factors:

• Hidden Costs: Recruitment, training, pensions, and admin costs for staff banks are often overlooked—many of which are covered by agencies.
• Reduced Flexibility: Staff banks are less responsive to short-notice demand, leading to unfilled shifts or costly emergency cover.
• Higher Long-Term Costs: Poor workforce planning results in over-reliance on overtime or outsourced private providers, increasing overall taxpayer burden.

Instead of replacing agency staffing, the focus should be on smarter integration through framework-compliant agency partnerships.

The Issue with Insourcing and the Hidden Cost to the NHS

Recent NHS workforce strategies have shifted towards insourcing—where private firms deliver services in-house. While marketed as a cost-saving measure, it often leads to:

• Political, Not Practical: Decisions based on optics rather than evidence.
• Privatisation by Stealth: Insourcing still involves private firms, undermining arguments against agencies.
• Higher Costs: Corporate fees, admin overheads, and loss of flexibility often make insourcing more expensive than agency staffing.

A more pragmatic solution would be to repatriate services back to the NHS using agencies already working within NHS frameworks.

Overseas Recruitment Cuts Are Hurting Workforce Stability

The UK has long relied on overseas healthcare professionals to maintain staffing levels. Recent budget cuts to international recruitment pose serious challenges:

• Wage Inflation: Reduced candidate supply increases demand and short-term pay pressures.
• Increased Agency Reliance: Without a steady flow of permanent staff, NHS trusts lean more heavily on agencies—often at premium rates.
• Short-Term Thinking: Cuts provide short-lived savings but risk long-term instability.

Explore more on healthcare staffing shortages in the UK.

Solutions: A Balanced, Sustainable Workforce Strategy

1. Repatriate Services Using Framework Agency Staffing

Trusts can bring services back in-house while still partnering with trusted agency staff—ensuring flexibility and NHS compliance without long-term private contracts.

2. Transparent Cost-Benefit Analysis

• Compare true costs across agencies, staff banks, insourcing, and international recruitment.
• Expose hidden inefficiencies—especially in politically motivated outsourcing models.
• Prioritise long-term patient care and workforce stability.

Conclusion

Healthcare agencies are essential to the delivery of NHS services. They fill critical gaps, support clinical teams, and help maintain continuity of care. Demonising them distracts from larger structural issues in workforce planning and funding.

Policymakers must shift focus from blame to balance—embracing reforms that value the role of agencies while tackling inefficiencies system-wide.

Partner With Globe Locums

At Globe Locums, we are proud to support the NHS through compliant, efficient and compassionate recruitment services. Whether you’re an NHS employer or a healthcare professional seeking work, we’re here to help.

Contact us today or register your details to explore flexible NHS job opportunities across the UK.