NHS can save £200m through improved staff management

New research into people management has suggested that NHS trusts could save more than £200 million a year by managing staff well.

The report, published by the What Works Centre for Wellbeing and undertaken by academics at the University of East Anglia, found that trusts which made the most extensive use of good people management practices were more than three times more likely to have the lowest levels of staff sickness absence, with rates of approximately 3.7 per cent. Additionally, such trusts were at least four times more likely to have the most satisfied patients.

Studying whether good people management is linked to high levels of well-being and better performance, it found that trusts ranked higher when they: made extensive use of training; carried out performance appraisal; encouraged team working; had clear roles for staff; allowed staff to take decisions about how to do their job; encouraged supportive management; and involved staff in decisions about their departments and the trust.

The researchers estimate that if all hospital trusts reduced their absence rates to 3.7 per cent, this could lead to an annual saving of more than £200 million in sick pay for the NHS.

Dr Ogbonnaya, a lecturer in human resource management, said: "A key priority in recent healthcare debates concerns the need for respectful and responsive services that meet patients’ expectations, values and preferences. Our study provides guidance on important good people management practices for improving healthcare workers' wellbeing and the quality of services that patients receive.

"Our key message is that good people management practices are essential for promoting workers' well-being and ensuring happier patients. Improvements in patients' satisfaction may not necessarily depend on major reforms and restructuring of the healthcare sector, but perhaps the provision of working practices that foster workers’ skills, personal growth and development. Healthcare leaders should pay attention to how these practices may be deployed towards promoting the quality of care that makes a difference to patients."