Agenda item

Purpose of the report:  Scrutiny of Services and Budgets; and Policy Development and Review.

The report provides the Council Overview Board with an update on progress improvements to the council’s agency worker arrangements, including implementation of a new framework agreement, historical and current spending and current mark up rates.  The report sets out the council’s approach to temporary staffing and controls being implemented for managing usage and costs of agency staff.

Witnesses:
Ken Akers, Head of Human Resources & Organisational Development
Indiana Pearce, Senior Human Resources Advisor - Contract Management

Key points of discussion:

1.    Officers outlined that the report illustrated continuing improvement and control of the recruitment of agency staff, but that the service was committed to further improvements to the system and continual work towards making savings. It was also noted that the financial outturn of agency staff for the Council was only 5% of the overall staffing budget, but that this did not lessen the service aspiration to improve efficiencies in this area.

2.    The Board queried Officers regarding the large increase in payments for qualified social workers in Adult Social Care and for the Chief Executive’s Office. Officers responded that the figures regarding Adult Social Care Service was reliant upon information from Manpower and that the information provided was felt to be incorrect, noting that the higher figure could most likely be attributed to the erroneous addition of £1.2 million costs for unqualified care workers. The service would provide the Board with the correct figures. It was noted that the increased cost for the Chief Executive’s Office was due to demand for locum lawyers.

3.    A question was raised by Members querying costs listed in paragraph 29 suggesting that annualised figures do not correspond with those listed in the table. Officers responded that the figures available were a snapshot for the month of May 2016 and could not be extrapolated to provide a complete annual picture. Members suggested that a more accurate investigation could be undertaken with an analysis of quarter two and three figures for 2016. Officers suggested that the Board could be supplied with more comprehensive data later in the year.

4.    Members noted that there was currently no policy framework in place to guide the use of agency workers. It was suggested that there was a need to create a policy framework to address any issues that may arise from this. Officers agreed with the necessity to draft a policy for the improvement of contractual arrangements. It was noted, however, that, due to the wide ranging nature of agency staff, that a “one size fits all” approach would be not be the ideal method. Officers suggested that multiple avenues of approach to resolving this issue were being considered, and the aim was to have a policy in place by October 2016.

5.    Members put a question to officers regarding permanent staff recruitment and retention as an alternative to agency staffing, and whether there has been improvement regarding this. It was noted that improved staff retention was an aim of the Pay and Reward Strategy. It was also noted that the offer of competitive pay and attraction benefits had improved the prospects for permanent recruitment. It was noted, however, that some issues were still difficult to tackle, particularly emphasising the issues raised by staff of a lack of work/life balance and high levels of case work. The service was, however, seeking long term solutions to these problems.

6.    The Board questioned whether there was an adequate level of staffing, particularly in areas of high pressure. Officers responded that levels of staff appeared adequate in these areas; however, for a more detailed analysis, it would be necessary to discuss this with specific services.

7.    A question was raised by members regarding the mark-ups for qualified agency workers. It was noted that these were significantly higher than other staff bands. It was also observed that this area had seen the greatest increase in costs. The Board questioned whether it would be appropriate to reduce staff levels in this area and focus on permanent recruitment as a means of cost reduction. Officers noted that, while there was a significant mark-up rate, there was also a high on-boarding cost for permanently recruited staff which needed to be taken into account when comparing overall costs. However, that there were probable savings available and that these would be explored by the service.  It was agreed that a comparison of the full costs of employing agency and permanent staff would be provided, showing figures posts at the low, medium and high ends of the salary scale.

[Stephen Cooksey left the meeting at 10.50am and returned at 10.56am]

8.    The Board questioned officers regarding who were the signatories of the Memorandum of Understanding regarding agency staffing. It was explained that signatories included a large range of authorities in south east England, and that a full list would be provided to the Board for examination.

9.    The Board thanked the team for their work regarding the Pay and Reward Strategy and noted the hard work undertaken by the service.

Resolved:

1. That the policy for the use of agency staff and the data from the first two quarterly monitoring reports for the Adecco contract be reviewed by the Council Overview Board at its meeting in November 2016.

Further Information to be Provided:

1.    Comparison of the full costs of employing agency and permanent staff would be provided, showing figures posts at the low, medium and high ends of the salary scale.

2.    Details of the Memorandum of Understanding regarding agency staffing.

Action by: Ken Akers/Indiana Pearce