The NHS faces unprecedented challenges in maintaining adequate staffing levels and managing financial pressures. Concerningly, with the latest data showing the NHS in England has over 100,000 vacancies, we know that staffing shortages impact everything from patient care to workforce morale.
The makeup of the NHS workforce is also changing as we've seen an uptake in retirement from experienced individuals post pandemic. 108,890 individuals left the NHS between August 2022 and August 2023, highlighting further the need for sustainable, long-term staffing solutions.
Although locums often provide essential support, the cost of employing temporary staff is significantly higher than that of permanent employees. Given the financial constraints on NHS trusts, they have had to make great strides in reducing agency spend in recent years. For example, hiring a locum consultant costs the NHS around £203,840 annually, compared to an equivalent permanent salary of approximately £120,000 – an excess cost of over £80,000 per consultant. Continuing to address these staffing challenges cost-effectively is therefore essential for the long-term sustainability of the NHS. Until these challenges are addressed, significant sums of money are being diverted from patient care to pay agency and locum fees.
How TERN Group is supporting NHS trusts
TERN Group is pioneering technology-driven solutions to address the NHS' workforce challenges. As the world's first end-to-end platform (encompassing upskilling, global migration, and placement services in a seamless process), TERN provides a comprehensive approach to recruiting and retaining top healthcare talent. The platform integrates training, migration support, and job placement, offering healthcare institutions an efficient way to access qualified, permanent staff while reducing dependency on costly locum contracts.
By leveraging digital tools and technology, TERN helps healthcare professionals achieve certifications that align with NHS standards, making it easier for international candidates to transition into UK roles. This technology-enabled approach also includes ethical recruitment practices, ensuring candidates receive appropriate support and guidance throughout their career journey. The long-term placements reduce costs associated with locum staffing and create workforce stability, which is essential for maintaining high standards of patient care.
Transitioning from locum to permanent contracts can result in substantial annual savings. For instance, employing a permanent foundation year resident doctor rather than a locum can save around £50,000 per year per role. Similarly, the savings can reach up to £86,000 annually for registrar and speciality doctor positions excluding the efficiencies generated from building knowledge and skills within an inhouse team and improving retention rates.
These figures underscore the potential financial benefits of TERN's approach, providing a sustainable alternative to short-term locum solutions. The estimated savings are £3.95m per hospital partner including reduced temporary labour, permanent hiring savings, better retention, and zero agency costs.
How NHS trusts can benefit from technology and artificial intelligence
NHS trusts are always seeking to find innovative ways to optimise their resources and improve patient care. Technology offers a powerful tool in this pursuit, enabling trusts to streamline recruitment, enhance workforce stability, and ultimately reduce expenses.
Artificial intelligence powered technology can support NHS trusts by offering a digital infrastructure that simplifies the hiring process, matches candidates with suitable roles, and supports their integration into the healthcare system.
It goes beyond simple recruitment by facilitating upskilling and training, ensuring that healthcare professionals are well-prepared to meet the demands of NHS roles. The platform's digital learning tools allow individuals to gain certifications recognised within the UK healthcare system, which is particularly valuable for international candidates. This approach helps trusts meet staffing needs and ensures that incoming professionals are adequately skilled and ready to deliver high-quality care.
Focusing on long-term placements and career development, this technology-driven solution offers NHS trusts a reliable, ethical way to reduce locum costs. With permanent staff in place, NHS trusts can better manage workloads, improve team cohesion, and maintain continuity of care – factors that are crucial for delivering effective healthcare.
The future of a digitalised NHS: financial longevity through technology
Adopting digital solutions within the NHS is essential for achieving financial sustainability and improving healthcare delivery. In the long term, the digitalisation of NHS workforce management could reduce financial strain, enabling funds to be redirected towards patient care, infrastructure, and other vital areas. As the NHS evolves, partnerships with technology providers will be instrumental in creating a resilient, sustainable healthcare system that can effectively meet the needs of the UK population.
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