3 ways to reduce agency costs and retain permanent staff year-round

22 September 2025

4 minuts

News

The Golden Quarter may be consuming our focus, but workforce planning isn’t just a Christmas concern. Rising labour costs, new employment regulations, and retention challenges mean HR and operations leaders must think year-round. Discover three practical ways to reduce agency spend and keep permanent staff engaged, no matter the season.

As the crisp autumn air settles over the UK, HR and Operations Directors face a familiar challenge. The Golden Quarter is upon them, and while sales forecasts are optimistic, customer facing teams are stretched thin. Seasonal staff haven't arrived yet, permanent employees are psyching themselves up for the busy season, and agency costs are climbing faster than projected revenue.

A similar scenario is playing out across businesses where September through to January is make-or-break season, and yet the workforce behind it is fragile. Now, with the UK Employment Rights Bill (ERB) reshaping the rules of engagement, the pressure is even higher. Workers on zero-hours contracts must be offered guaranteed hours after just 12 weeks, day-one employment rights now apply, and flexibility around temporary staffing is shrinking [1][2].

The effect is clear: seasonal hires are becoming more expensive and administratively complex. In contrast, retaining permanent staff, whose pay, benefits, and schedules are already established, is comparatively cost-effective. Businesses that continue to rely heavily on agency or seasonal labour risk escalating costs, compliance issues, and operational gaps during the peak trading period [3].

The impact of losing a single permanent, trained and experienced member of staff is significant, costing between £3,000–£6,000 [4]. For organisations with hundreds of frontline staff, the numbers quickly become unsustainable.

Operational risks are just as serious. Misaligned scheduling can lead to missed production targets, dissatisfied customers, and eroded brand reputation [5,6]. And with the ERB, short-term fixes, such as relying on zero-hours contracts or late-stage hiring, are no longer a safe option.

Under the ERB, seasonal hires become significantly more expensive due to guaranteed hours and statutory rights, making it now far more cost-effective to invest in retaining and developing permanent staff than to continually rely on agency or seasonal labour [7].

Imagine a WFM platform that forecasts staffing needs based on sales, production orders, or hotel occupancy. Suddenly you can see where shifts are under or over staffed weeks in advance. Your reliance on agency staff falls, and permanent staff feel supported rather than stretched. The ERB is no longer a headache, rather it became part of a smarter scheduling strategy [8].

Engagement isn’t a nice-to-have; it’s a survival mechanism. Leaders who invest in recognition, wellbeing, and flexible scheduling see tangible results. Mobile apps that allow staff to swap shifts or access early pay may sound small, but they significantly boost morale. Accor and Target, for example, used these features to reduce attrition, saving thousands in recruitment and training costs [1,2, 11]. A satisfied, engaged permanent workforce reduces the risk and cost of offering guaranteed hours to more workers, mitigating ERB-driven payroll pressures [9].

High-performing employees are the backbone of any operation during peak season. By identifying top talent early and providing short, focused onboarding for seasonal workers, organisations can maintain service quality. Peer-led and on-the-job training ensures speed without disruption. Compliance with day-one rights and other ERB requirements becomes seamless, integrated into everyday operations rather than an afterthought [10].

The imperative is clear: organisations that act strategically will reduce agency costs, retain permanent staff, and maintain operational resilience. Those that fail will face burnout, escalating payroll, service failures, and lost revenue.

For HR and operations leaders, the ERB shouldn’t be seen as another compliance hurdle but as a strategic prompt to rethink workforce planning. By embedding advanced WFM tools, engagement initiatives, and targeted training into core operations, businesses can navigate the Golden Quarter with confidence, reduce reliance on expensive agency labour, protect their permanent workforce, and emerge stronger in the new year.

Look out for the next article in this series

We'll be taking a deep-dive into the research to see how employers can protect staff wellbeing during the busy season. In case you missed the first article - here’s the link!

Workforce Planning isn’t just for Christmas