The Cost of Employing a Member of Staff vs Using a Locum in UK Pharmacy
When reviewing staffing strategy, one of the most common questions pharmacy owners ask is:
Is it more cost effective to employ a permanent member of staff or use a locum?
The answer depends on more than the hourly rate. While a locum may appear more expensive at first glance, the full financial picture is more complex.
This article breaks down the true costs involved in both models and explains when each approach may be appropriate.
The True Cost of Employing a Permanent Pharmacist
A salaried pharmacist’s annual salary is only part of the overall employment cost.
In addition to gross salary, employers must account for:
• Employer National Insurance contributions
• Employer pension contributions
• Holiday pay
• Statutory sick pay
• Maternity or paternity pay
• Continuing professional development support
• Recruitment costs
• Payroll administration
For example, a pharmacist on a salary of £50,000 per year may cost significantly more once employer contributions and benefits are included.
Employment also carries ongoing obligations under UK employment law, including notice periods and redundancy considerations.
For technicians and dispensers, the same principle applies. The advertised salary does not represent the total employment cost.
The Cost of Using a Locum
Locums are typically engaged on a self employed basis in community pharmacy. Contractors usually pay an agreed hourly rate for hours worked.
There are generally no additional costs such as:
• Employer pension contributions
• Employer National Insurance
• Holiday pay
• Sick pay
• Long term employment liabilities
You pay for:
• Confirmed paid hours
• Agreed shift terms
This creates short term flexibility and cost predictability.
However, locum rates may fluctuate depending on:
• Region
• Demand
• Urgency
• Rural or remote location
A £35 per hour locum rate may initially appear higher than the equivalent hourly salary cost. But when employer obligations are included, the comparison changes.
Flexibility Versus Stability
Permanent employment provides:
• Continuity of care
• Familiarity with systems and patients
• Team cohesion
• Reduced onboarding time
Locum staffing provides:
• Flexibility
• No long term financial commitment
• Easier scaling up or down
• Reduced recruitment pressure
For independent pharmacies experiencing workforce shortages, locums can provide an operational safeguard while recruitment is ongoing.
Hidden Costs of Staffing Gaps
It is also important to consider the cost of not filling a shift.
Closure or reduced services can result in:
• Lost prescription revenue
• Loss of retail sales
• Reputational damage
• Increased commissioner scrutiny
In some cases, the cost of hiring a locum is lower than the cost of closing for a day.
When Employment May Be More Suitable
A permanent employee may be more appropriate when:
• Consistent daily presence is required
• The pharmacy delivers complex or specialist services
• Long term business stability is the priority
• Recruitment conditions are favourable
Employment supports continuity and long term team development.
When Locum Use May Be More Suitable
Using locums may be beneficial when:
• Covering annual leave or sickness
• Managing seasonal demand such as vaccination campaigns
• Addressing recruitment gaps
• Testing new service provision
• Operating in financially uncertain conditions
Some independent pharmacies also explore hybrid models, combining permanent staff with structured locum cover to maintain flexibility.
Guidance for Locum Pharmacists
Locums should understand that contractors assess cost beyond hourly rate alone.
Professional conduct, reliability and clear communication contribute to long term rebooking and stable working relationships.
Locums who:
• Confirm availability clearly
• Maintain up to date documentation
• Understand service expectations
• Communicate professionally
Are more likely to be viewed as valuable long term workforce partners.
Taking a Structured Approach
Whether employing permanent staff or engaging locums, the key is structure.
Pharmacies should:
• Assess true employment costs
• Forecast seasonal demand
• Plan annual leave cover early
• Maintain documentation checks
• Confirm paid hours clearly
Working with a structured staffing partner such as Pharm-Assist can support workforce planning by:
• Assisting with forward booking
• Supporting urgent cover
• Confirming paid hours and break deductions clearly
• Reducing administrative burden
This allows contractors to make informed decisions based on both cost and operational stability.
Final Thoughts
The cost of employing a member of staff versus using a locum cannot be judged by hourly rate alone.
Permanent employment provides continuity and team stability. Locum staffing provides flexibility and reduces long term financial commitments.
The right model depends on your pharmacy’s size, location, service mix and financial outlook.
If you are reviewing your staffing strategy, Pharm-Assist supports pharmacies across the UK with structured and transparent locum solutions to help maintain compliance and operational continuity.