Whether we like it or not, we’re all living in a new normal. Our industry has definitely shifted since the COVID-19 outbreak impacting all industry verticals. In keeping track on the state of our industry, the Trackforce Valiant team, in collaboration with Security Magazine, held a webinar to disclose exclusive in-depth analysis on security officer pay and bill rates. Here are four key reasons why security companies are reviewing their pay and bill rates – and why they should if they’re not already doing so.
COVID-19 Expressed a New Normal for Our Industry
We’ve seen industry disparities during this new normal – and for contract security, there have been much variability based on the type of industry served. While a few have seen a boost in activity due to a demand for remote guard services, others have suffered losses and challenges – especially those serving schools, churches, stadiums, and other public areas.
Reevaluate Baseline Rates by Comparing to Non-COVID-19 Rates
Reevaluating security industry rates are always an essential part of owning a security company. Preparing for future disparities requires security company owners to compare their data against status quo years. Luckily, our team focused on the end of 2019 in order to establish a good baseline for analysis. Our team analyzed roughly 200 guard firms across 500 divisions, managing 12,000 unique clients. From that group, we looked over 83,000 security officers working over 2 million shifts, enabling us to review and analyze the pay and bill rate data.
Review Industry Benchmarks and Reassess Your Own
When evaluating your baseline, it’s essential to keep in mind a benchmark for industry rates. In our research, we were able to show where the majority of companies place their pay scales with median comparisons inline with our industry standards. In this new normal, variability will be expected – and differences in pay scales must be adjusted and reflected based on industry sectors and Union vs. Non-Union rates.
Understand Where Your Business Falls with Indirect Costs
When understanding where the majority of your expense comes from, it’s important to reevaluate costs when moving your business forward when COVID-19 is behind us. All in all, the final bill rate naturally will include variable indirect costs, such as those that incur with taxes, workers compensation, uniforms, equipment, PTO, benefits, to name a few. Managing these costs will be a huge factor in determining the total expense and eventual success of your company post COVID-19.
About the Author
Christina Ortega is the Content Marketing Specialist for Trackforce Valiant. She aims to deliver valuable content that addresses key issues facing the security industry – and offers insights into the latest solutions being taken to confront them.
Security Technology Executive
Enhanced Visibility and Real-Time Data in Corporate Security Initiatives
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