Following the launch of a new guide for public sector managers on how to get value for money from the use of agency staff, recruitment industry figures have warned that cost cutting should not be to the detriment of a flexible and high quality workforce.

The Office of Government Commerce (OGC) guide: Demand Management in 9 steps, sets out simple measures showing how a ‘demand management’ approach (see below) can offer extensive savings over the long and short term.

This approach also offers other benefits when taking on temporary staff, such as improved business performance, a sustainable workforce and retention of skills and knowledge.

Nigel Smith, chief executive of the OGC, says: “As efficiency targets increase, contracting authorities have a much greater need to make sure they are getting the best value for money from the use of their resources, and that includes human resources. It is crucial that public sector organisations also have the appropriate resource, at the right time and the right place, with the right skills and at the right price.

Commenting on the new guidelines, Nicola Linkleter, executive director Public Sector, Badenoch & Clark, told Recruiter: “It will be important to consider ways to improve efficiency in this area but organisations should also invest in programmes to upskill their workforce, provide stronger leadership in delivery and to ensure knowledge transfer is a priority. It is important for recruitment organisations such as Badenoch & Clark to recognise these pressures and work to provide the value-added services that will support organisations in delivering these goals.

“At a recent directors forum hosted by Badenoch & Clark, senior government leaders identified efficiency within contractor usage as an integral component of any future resourcing strategy. It was identified that organisations had become lazy in their approach to interim resources and that they were no longer used as the impact solution for which they were intended.”

Tom Hadley, Recruitment and Employment Confederation director of external relations, told Recruiter: “Flexible staffing arrangements are key to the delivery of front line services and should not be seen as an unnecessary cost that can easily be cut.

“The increasing focus on value for money is inevitable but there must be a  workable balance between cost savings and the ability to provide a quality service.  We are calling for assurances from the OGC that this guide genuinely recognises the need for safe and ethical recruitment and does not signify a ‘race to the bottom’ in terms of standards.”

The nine steps to implement demand management, as outlined in the guide, are:

Step 1: Define the approach and create a group of key stakeholders?

Step 2: Analyse data and identify opportunities

Step 3: Generate options

Step 4: Select options and complete the business case?

Step 5: Design a benefits tracking and recovery methodology?

Step 6: Develop a communications plan?

Step 7: Implement the changes?

Step 8: Monitor and embed the changes?

Step 9: Review and consider longer-term plans.