Demand Balanced Workforce Planning

Client:

An Internationally renowned NHS Hospital Trust comprising three geographical hospital sites, employing over 10,000 people and providing a diverse range of specialist clinical services.

Challenge:

The Trust had an annual pay budget in-excess of £330m. Operational demands and limited workforce management led to consistent and significant unbudgeted expenditure.

In order to meet the Cost Improvement Programme objectives and operate within budget a significant reduction in pay expenditure was necessary.

Approach:

Undertake an in-depth financial analysis to identify the categories of pay expenditure and create standard justification codes to actively track the reason for the expenditure.

Analyse and align the Whole Time Equivalent (WTE) staffing level increase to the increase in income over the previous three years.

Establish a workforce management team to devise metrics to target and track both expenditure and WTE staff numbers.

Create a workforce management policy to provide guidance to managers.

Develop a centralised administration, clerical and management agency booking office to actively record, manage and challenge agency booking requests.

Establish the correct staff skill mix, aligned to demand and pay budgets.

Outcome:

Managers held to account to operate within their pay budgets.

Annualised nursing agency and bank staff savings of £2.2m.

Annualised administration and clerical staff savings of £1.3m

Staff bank created and the number of agency staff suppliers reduced by 70%

Monthly agency usage report created to enable finance to accrue for future financial costs.

Forecast to mitigate the total overspend by year-end through the continued deployment of further pay initiatives, including:

  • Procurement and installation of a staff rostering system.
  • A locum medical staffing review.

 

Linea successfully engaged with management and clinicians helping the Trust to significantly improve performance and reduce costs. Without their project implementation expertise the Trust would have struggled to achieve its financial surplus.” Director of Performance Improvement

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