6 Steps to Reduce Your Agency Spend

By Cohesion Recruitment

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Clients often approach our Temporary Managed Service specialists with one question - "How can I reduce my agency spend?”

Depending on the size of your business - this is no mean feat. You need to adopt a strategic approach and get everyone on board. It may seem like an unmanageable task but, I assure you, it isn’t. There are many ways you can reduce agency spend - all you have to do is look.

Here are 6 steps to help get you off the mark:

1. Visibility is key

Getting to the root of the problem is where you need to start. A data discovery exercise is a great way of doing this. Gather internal data and talk to your employees and suppliers. By surveying all of your stakeholders, you'll gain visibility over what commission and pay rates are in place across the organisation. Chances are - they're very varied.

2. Set commission rates

Have set commission rates that you will use across the entire organisation. This will not only save you money on your agency spend - it will also increase visibility. 

3. Standardise pay rates

Many organisations do not do this - yet, it's a simple step to take when it comes to reducing agency spend. Why should one Administrator be on £8/ph, and another be on £12/ph for doing the same job? Clear rates must be set! A benchmarking exercise will allow you to discover the market rates for a particular worker - set the rate, and don't budge!

4. Be ready to negotiate

You and your staff will need to negotiate new rates with suppliers. Ensure that whoever is dealing with agencies has the ability to challenge, and ensure that agreed commission and pay rates are stuck to. This is extremely important.

5. Only use temporary staff when it's absolutely essential

One person has called in sick; they're likely to be off for 2-3 days - do you need to call in a temporary worker? Is there someone else on the team who can help out? Instill a culture whereby your employees are really questioning whether or not you need to spend money on getting someone else in. 

6. Consolidated invoices

If you're working with a Managed Service Provider (MSP), you should be able to request one consolidated invoice - this will save you time and cost on processing a number of invoices at any one time. 


Taking these steps will help you to reduce your agency spend. We often carry out data discovery exercises for clients, whether they would like to outsource their recruitment to us, or not.

Take a look at our Temporary Workforce eBook if you'd like more information on how to manage your temps!


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