Health and Social Care Agency

What Are External Agencies in Health and Social Care?

External agencies in health and social care are third-party organisations that supply staff to care providers from outside the organisation. This guide explains what external agencies are, how they differ from bank staff and when external agency use is the right choice.

Third-party supplyExternal agencies supply staff from outside the organisation, as distinct from internal bank staff on the provider’s own books
RegulatedExternal agencies operating as employment businesses are regulated under the 2003 Conduct of Employment Agencies Regulations
FlexibleExternal agencies provide on-demand staffing flexibility without the fixed costs of maintaining a large internal bank
Compliance responsibilityThe external agency bears primary responsibility for vetting, DBS checking and compliance of the workers it supplies

What Are External Agencies in Health and Social Care?

External agencies in health and social care are third-party organisations that supply care workers to health and social care providers from outside the provider’s own organisation. They are distinct from internal bank staff, who are employed or registered directly with the provider and called on as needed. External agencies provide an additional layer of flexibility for providers who cannot always fill their vacancies through their own internal resources. Understanding when and how to use external agencies effectively is an important part of workforce planning for care providers.

Health and Social Care Staffing Solutions

SENDhelp supplies experienced, vetted care staff to health and social care providers across the UK. Whether you need registered nurses, support workers or specialist care staff, we can help you fill vacancies quickly and compliantly.

Key Points Explained

1

What makes an agency external

An external agency is any organisation that is separate from the care provider itself and that supplies staff for the provider to use. The agency recruits, vets and manages its own pool of workers, who are then made available to client providers as needed. The key distinction from internal bank staff is that external agency workers are not employed by or registered with the provider: they are supplied by a third party under a commercial contract.

2

External agencies vs internal bank staff

Internal bank staff are workers who are employed by or have a contractual relationship with the care provider itself. They are typically offered hours as needed and are familiar with the provider’s systems, clients and culture. External agency workers are supplied by a third party and may be less familiar with the specific provider. External agencies are typically used when internal bank staffing is insufficient to cover demand, when specialist skills are needed or when speed of supply is critical.

3

When external agencies add most value

External agencies add most value when a provider cannot fill a shift or vacancy through internal resources, when specialist skills are needed that the internal workforce does not have, when a provider needs to scale up quickly for a new service or increased capacity and when last-minute cover is needed urgently. Many providers maintain relationships with one or more external agencies as a standing resource for these situations.

4

The commercial relationship

The provider and the external agency operate under a contract that sets out hourly rates, payment terms, notice periods, the agency’s vetting standards and the terms under which permanent hire of agency workers is permitted. Providers should read and understand these terms carefully before signing, paying particular attention to transfer fees, cancellation terms and what the agency’s responsibilities are if a worker is not suitable.

5

Compliance and risk management

One of the key benefits of using a reputable external agency is the compliance assurance it provides. The agency is responsible for ensuring its workers have valid DBS checks, the right to work in the UK, required training and suitable references. Providers should verify these assurances by asking for evidence of compliance processes and checking agency credentials before committing to a relationship.

6

Cost considerations

External agency staff typically cost more per hour than internal bank staff because the rate includes the agency’s margin. However, the total cost of agency use should be weighed against the cost of alternatives: including the cost of leaving shifts unfilled, the potential CQC and regulatory consequences of understaffing and the management time involved in recruiting directly for every vacancy.

For related information see our articles on Agencies in Health and Social Care Explained and Agency Staff vs Bank Staff in Care.

Frequently Asked Questions

What is the difference between an external agency and bank staff?

Bank staff are workers who are employed by or registered with the care provider itself and called on as needed. External agency workers are supplied by a third-party agency under a commercial contract. Bank staff are typically cheaper to use than external agency staff but may not always be available. External agencies provide an additional layer of staffing resource when internal options are insufficient.

When should I use an external care agency?

External care agencies are most useful when internal resources cannot fill a shift or vacancy, when specialist skills are needed, when speed of supply is critical and when last-minute cover is required. Many providers maintain standing relationships with one or more agencies to ensure they always have a fallback option when their own staffing is insufficient.

Who is responsible for compliance when using an external agency?

The external agency is responsible for ensuring its workers are appropriately vetted, DBS checked, have the right to work and hold the required training. However, the care provider retains responsibility for supervising agency staff and for the overall quality of care delivered. Providers should verify an agency’s compliance processes before use and not assume that agency supply equals compliance.

Health and Social Care Agency Resource Hub

Visit our Health and Social Care Agency Resource Hub for more guides on staffing, compliance, CQC standards, agency costs and how to choose the right care agency for your organisation.

The information in this article is provided for general guidance only and does not constitute legal, regulatory or professional advice. Regulations, rates and compliance requirements change: always verify current requirements with the relevant regulatory body. SENDhelp Education Limited accepts no responsibility or liability for any loss or damage arising from reliance on this content. Any links to third-party websites are provided for convenience only and do not constitute endorsement of their content.

To stop receiving marketing emails or SMS’s from SENDhelp, kindly complete the form below. We strive to promptly remove your information, aiming to complete the process as soon as we receive your submission.

SENDhelp
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.