Transforming NHS Variable Pay: The Right People at the Right Rate
Following the government’s recent announcement signalling potential legislation to end NHS reliance on agency staff and significant disparities in pay rates across different regions and specialties, the need for comprehensive rate harmonisation has never been more critical. In the latest part of our ongoing blog series on agency spend, Jack Mazzina looks at getting the right people at the right rate...
25 July 2025
Jack Mazzina, Commercial Director, Liaison Workforce
The NHS faces a daily challenge: thousands of vacant shifts requiring expensive temporary cover through overtime, bank staff, and agencies. This fragmented approach creates a perfect storm of escalating costs, operational inefficiency, and workforce frustration.
Multiple disconnected systems, inconsistent processes, and poor data visibility have created an unsustainable cycle. NHS organisations struggle with uncontrolled costs, limited decision-making capability, and a disengaged temporary workforce, perpetuating wasteful spending patterns.
The Solution: Strategic Pay Control
Effective pay control achieves dual objectives; financial sustainability and workforce fairness. When rates are properly benchmarked, standardised, and governed through technology, NHS trusts can reduce costs while maintaining quality temporary staff attraction.
Real-World Success: East Sussex Healthcare NHS Trust
East Sussex Healthcare NHS Trust partnered with Liaison Workforce for comprehensive rate harmonisation and benchmarking analysis. The results were transformative:
- 40% reduction in agency commission costs
- Maintained service quality throughout the transition
- Achieved substantial savings through intelligent transformation, not just cost-cutting
This success demonstrates that strategic intervention can deliver both financial results and operational excellence – proving that trusts don’t have to choose between cost control and quality care.
The Platform Revolution
Organisations winning the variable pay battle embrace integrated platform approaches that transform workforce management comprehensively.
The Bank-First Cascade Strategy
- Internal Bank First – Maximise existing employee value
- Collaborative Banks – Share capacity across partner organisations
- Liaison National Bank – Access experienced retired clinicians
- Agency Supply Last – Use agencies as final resort only
Technology Enablers
- Credentially platform streamlines bank staff attraction and onboarding
- Smart rostering systems enable effective deployment of substantive workforce against demand
- Proactive people planning anticipates future staffing needs
- Comprehensive analytics identify root causes of high-cost spending
- Liaison Assist improves productivity and resource utilisation
The Integration Advantage
Success comes from recognising that workforce challenges are interconnected. When rate setting, bank management, rostering, and analytics work in harmony, each improvement multiplies the impact of others.
Looking Forward
The future of NHS variable pay management lies in integrated approaches that address root causes, rather than symptoms. Success requires comprehensive transformation that ensures the right people are in the right place at sustainable rates.
