The benefits of direct engagement for NHS organisations and their workers

What does direct engagement mean?

Direct engagement refers to a model of introduction for agency workers, allowing NHS Trusts to engage contracted workers directly. The model enables trusts to achieve savings whereby the Trust will use the agency to introduce the worker and the Trust then engages the worker directly. 

In practice, this means the NHS Trust manages the employment contracting, payroll, and compliance oversight for these agency workers. In return, organisations save particularly in respect to the payment of VAT on applicable salaries and reclaim VAT on applicable  recruitment agency fees. 

The benefits of direct engagement for NHS organisations and their agency workers

Below, we outline how effective implementation of a direct engagement model can support a trust’s wider healthcare delivery goals through:

1. 1. Significantly reducing agency spend. In 2024-25, each integrated care system will set a cap on overall spending on agency staff as part of an overall public service accountability programme. This will equate to a requirement to cut agency spend to below 3.2% of the overall pay bill. Organisations are encouraged to transition workers to substantive or bank roles to do this. Where this is not possible, direct engagement can support agency workers being engaged in the most cost-effective way. 
   2. Compliance and governance. Direct engagement models typically come with increased oversight and control for the organisation, given that the worker adheres to the organisation’s specific employment T&Cs for the duration of the booking. This ensures that the agency worker has increased accountability for ensuring they meet all necessary regulatory and training requirements, aligning with NHS standards and policies. The model also offers greater transparency over costs, and therefore greater control over the supply of agency workers.
   3. Simplified agency management processes. With direct engagement, workers deal directly with the trust for all employment-related matters. This reduces the complexity of coordinating with multiple agencies. For example, a worker who is directly engaged will work under a unified set of employment terms directly set by the NHS trust, rather than different terms and conditions set by multiple agencies. The trust benefits from simplified booking, payroll and compliance processes as a result. 
   4. Improved experience for agency workers. Communication between agency workers and organisational management can be more straightforward and effective when direct engagement is in place, leading to a simple booking process and faster payment. There is also likely to be a quicker resolution of issues, fostering better workplace relationships. As the trust saves money, there is sometimes the potential for agency workers to receive better pay and working conditions, as the NHS trust can assign more resources directly to the staff. This can contribute to a trust’s NHS staff employee well-being and engagement strategy.

With the right technology in place, direct engagement can unlock financial savings for NHS organisations, and support both workforce teams and agency workers with a simplified user experience. Find out how Patchwork Agency Manager could help your organisation reap these benefits here.