Case Study
Workforce Efficiency Transformation
Integrated operational support to significantly reduce temporary staffing costs and optimise bank and agency use for Mid and South Essex NHS Foundation Trust.
ALL STAFFING GROUPS
Mid and South Essex NHS Foundation Trust
Headline results
£10m
net savings
133% of target
48%
agency spend reduction
100%
direct engagement efficiency
100%
bank + agency rate adherence
93%
of temp staffing use via bank
Provided invaluable support and strategic guidance, helping us to implement change without compromising workforce stability.
The results Litmus have achieved are exceptional and demonstrate their ability to drive impactful operational change with care, and realise significant cost savings.
Chief Executive Officer
Mid and South Essex NHS Foundation Trust
The background
Mid and South Essex NHS Foundation Trust (MSEFT) is one of the largest in the country, with a workforce of around 15,000 who serve a population of over 1.2 million people.
In 2024, with a significant financial deficit, MSEFT was placed into NHS England’s Recovery Support Programme and challenging goals mandated to reduce overspending.
Litmus was appointed in December 2024 to support the Trust to reduce temporary staffing expenditure and deliver sustainable, risk-managed workforce savings and operational efficiencies.
Objectives
Litmus committed to reduce temporary staffing costs by £7.5m within a year. Specific goals included:
- A 50% reduction in temporary staffing use, achieved by improving rota management, resource utilisation and by recruiting new permanent staff into hard-to-fill vacancies, currently covered by agency.
- To generate substantial rate savings with a structured plan to reduce and standardise bank and agency pay rates across the region, and drive increased rate adherence, direct engagement and IR35 compliance.
The solution
Strategic workforce planning, immediate savings and operational transformation
Litmus worked in close collaboration with the Trust’s executive team to plan a broad program of operational change, successfully navigating and mitigating the risks associated with implementing new processes, policies and rate cards during the winter season.
Proposed pay rate adjustments were comprehensively risk profiled, with detailed data analysis and regional rate benchmarking. The sensitive process of communicating changes to managers and workers was also carefully planned to ensure their understanding and acceptance.
All planned changes were successfully implemented and delivered immediate savings with no perceived impact on fill rates or service levels. All monthly targets were consistently outperformed.
Benefits
Results and benefits
Cost benefits
- £10 million of net savings (vs year 1 target £7.5m)
- Agency spending reduced by 48%
- 100% adherence to bank rate cards and agency rate caps
- 100% adherence to break and commission policies
- Direct engagement uplifted by 30% (£1m savings)
Workforce benefits
- 93% of temporary staffing need fulfilled via banks
- Temporary staffing team upskilled and strengthened
- Robust rate control with breach accountability
- Targeted bank-focused recruitment
- Advance roster planning KPIs
Cost Savings
Cumulative monthly savings in year 1
Resource utilisation
Bank and agency use rebalanced
With a true ‘bank-first’ approach, bank fill has increased from 87% to 93% and agency use reduced to a necessary minimum. Overall, temporary staffing demand has also been reduced by 18%.
Specialty coverage
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