By Richard Gelder – Client Engagement Lead for Housing Associations at Matrix SCM

As we move into 2022 there is a pressing need for housing associations to resource temporary and freelance skills. In addition to the usual requirement for temporary workers to cover long-term sickness absences, unfilled permanent posts and peaks in workload – new skills are also now needed to deliver safer housing and to take account of new government mandates, particularly those framed by the Social Housing Whitepaper.

This is also happening in a period when skills are in potentially short supply post-Brexit. There are also several other challenges specific to recruitment that associations need to overcome, including:  

• The need to manage foreign worker rules
•  Ensure full compliance with UK employment and IR35 legislation
•  And managing the time it takes to deal with multiple agencies

The options for managing recruitment more effectively

 All this uncertainty is putting pressure on associations that need to recruit quickly to fill key temporary roles. The big question now is this: do you have the right structure in place to fulfil those needs, or do you need to consider a fresh approach?

 There are three main options on the table:

1. Stick with the status quo

 Currently, many hiring managers in the sector operate through a limited number of preferred agencies. This approach has several problems. It limits the size of the talent pool available. It also makes it difficult to manage the time and cost associated with managing multiple agencies, or get visibility of compliance with IR35 and AWR regulations.

2. Enter in a Master Vendor relationship

The traditional alternative is entering into a Managed Service Provider (MSP) agreement that offers a single point of contact. However, housing associations need to beware here. MSPs are built around lead agencies that tend to hold on to new orders for too long in an attempt to find their own candidates. As a result, they often struggle to fulfil all role requirements.

3. Try a Neutral Vendor approach

The other alternative for housing associations is a Neutral Vendor Managed Service Providerapproach that doesn’t have a vested interested in any single agency getting the business. Overall, the Neutral Approach offers benefits over the MSP model that include:

• Greater access to a diverse supply chain of suppliers
• More options for filling specialist vacancies
• Increased ability to scale up and down rapidly
• Guaranteed compliance checks
• Greater visibility over spend and usage of agency
• Complete Transparency in pricing

 Key questions to help you review your options

 At Matrix SCM, we use our Neutral Vendor approach to manage £650m in recruitment spend for 100 clients across the public and not for profit sectors. We have also demonstrated that our model delivers results that are measurable in terms of both profit and efficiency, including:

• Average 11% cashable savings per client
• 100% compliance before placements start
•  98% fill rate to client specified timeframes
• Zero off-contract spend

We also offer a high level of account management that will help you fulfil your day to needs and provide input on recruitment strategy. For example, our business managers have recently worked closely with Tower Hamlets Housing to improve compliance, provide complete control over placements and deliver total visibility of the agency worker population.

These benefits are clear. That said, changing the way you manage recruitment is a relatively big decision – especially in times of uncertainty – so with this in mind I have put together a list of the nine key questions that will help review your recruitment options.

Ask yourself:  

1. Do our existing recruitment arrangements put us at risk of not being able to fill vital temporary and freelance roles?

2. Do we have full visibility of the worker population?

3. Do we have visibility of what we are spending?

4. Do we ever struggle with managing compliance and IR35 as recruitment increases?

5. Are we spending too many hours managing multiple relationships with recruitment agencies?

6. Are we spending too much time on finding missing POs, incorrect timesheets and invoicing?

7. Do we have standardisation on pay and agency margins?

8. Does our current approach support all stakeholders within the business?

9. Would we benefit from a new partner that can help us manage our agency supply chain more effectively and impartially – and deliver us cashable savings?

 Explore further

If you have answered some of these questions negatively, it may well be time to consider a new approach that will help you manage your recruitment more efficiently and effectively.

We’ve recently produced a buyer’s guide for the housing associations that will help you explore the choices available to you in more detail – or email Richard.gelder@matrix-scm.com for an assessment of your needs.