How Can You Bring Down Labor Costs In The Security Industry?

Tue, Jul 11, 2023

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Security labor costs are rising, as with almost everything else in the market. In many markets, hiring and retaining security staff has become prohibitively expensive. As a result, many security companies have begun to look for ways to reduce labor costs without sacrificing quality and productivity.

How Can You Bring Down Labor Costs In The Security Industry?

Many factors go into bringing down labor costs in the security industry. So, you should know some of these factors and learn how they bring down your labor costs.

But First, What Does “Labor Cost” Mean In The Security Industry?

The sum of all wages given to employees, plus any employee perks and payroll taxes incurred by the business, accounts for the cost of labor. 

The expenses associated with labor classify as direct and indirect expenditures.

Indirect costs are tied to support labor, such as personnel who maintain manufacturing equipment. Direct costs are related to the pay of those who create a product, including assembly line workers.

Ways To Bring Down Your Security Labor Cost  

1. Use Technology To Your Advantage

The use of technology in the security industry is a great way to reduce labor costs. You can start by analyzing your daily tasks and determining the ones you can automate. Once you have a perfect application, you can implement it and benefit from a lower labor cost. 

For example, using biometrics for entry and exit can help reduce the number of security guards you need at different entrances. Besides that, using surveillance cameras to keep an eye on every area rather than using human force is another example.

2. Hire The Right People From The Start

If you hire people who are not qualified, they will not be able to perform their job adequately and, therefore, will cost more money than necessary. If there’s no work ethic or dedication on behalf of your staff members, then it’ll show up in other areas like customer service levels or even safety measures.

3. Train Your Security Guards To Master More Than One Task

The security guard is often the most overlooked member of any team. Effective security guard management calls for effectual training to ensure your security guards perform their duties properly. They are the people who make sure everything runs smoothly and that nobody gets in or out of a vicinity without authorization. Unfortunately, this means they often do more than one task at a time, and to do so, they must get the training in every aspect required by the firm.

4. Limit Overtime

Overtime can majorly cause rising labor costs in the security industry. If you notice that overtime is abnormally high, you must identify the causes of overtime and implement ways to reduce it. 

5. Using The Right Number of Supervisors on Staff

To keep your security staff members in line, you need to have enough supervisors on hand who can handle the situation. If one of your employees is having trouble with another employee or client, send them over to the supervisor, who can help them resolve their problem. 

6. Take Advantage of Remote Monitoring

You must be present at every job site, especially if remote employees monitor the security systems and respond when needed. It will help reduce travel time and cost, which further helps reduce overall labor costs. Some companies use remote monitoring systems to cut down on security industry labor costs and reduce their need for office space. It helps reduce the need for on-site staff.

7. Outsource Certain Tasks And Positions

Are you outsourcing any security tasks? The more specific your needs are, the better your chances of finding an experienced candidate outside your firm. Hiring the right employees from outside can help you source talent at a reasonable cost. For example, if all you want is someone who knows how to install lights or alarms in buildings without hiring specialists. In such cases, it might not be possible because there are not enough people who specialize only in this area of work yet. 

In Conclusion

Labor costs are unavoidable expenses for any labor-extensive business, including security organizations. How can you bring these costs down? With the tips in this article, you’ll be able to make some significant changes. When it comes down to saving money, there is no one size fits all solution.

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