When discussing the total value of a contract security program, it is important to remember that along with the security budget, there are other costs that are more difficult to quantify. Even without a specific dollar amount associated with them, indirect costs require time, attention and expertise. In most cases, the cost of an outsourced security program initially seems comparable to an in-house budget.

However, the additional protection provided by a contract provider, combined with the elimination of other hidden costs may actually serve to reduce your long-term expense. Consider the typical costs associated with a security program.

Direct Costs

Also known as “hard costs”, these are fixed costs that would be accounted for directly in pricing or the bill rate.

Payroll, taxes and benefits

  • Taxes
  • Insurance/liability
  • Vacation
  • Medical benefits
  • Holidays, sick time, personal days
  • Retirement benefits
  • Overtime
  • Tuition reimbursement
  • Paid break time

Recruiting, testing, screening and hiring

  • Classified advertising space
  • Drug testing
  • Applicant tracking system
  • Background screening
  • Conduct reference checks
  • Skill assessment testing

Training costs

  • Training time
  • Trainer’s time/salary
  • Training materials and learning management system
  • New hire and ongoing training
  • Management training

However, the additional protection provided by a contract provider, combined with the elimination of other hidden costs may actually serve to reduce your long-term expense. Consider the typical costs associated with a security program.

Indirect Costs

Also known as “soft” or “hidden” costs, these are ongoing expenses that may be more difficult to quantify, but are part of the value of the overall program.

  • Scheduling
  • Develop training materials
  • Quality assurance process
  • Payroll processing
  • Administration
  • Emergency response resources
  • Special events coverage
  • Availability of manpower
  • Develop post orders
  • Review resumes from ad responses
  • Telephone screen candidates
  • Outline discipline programs
  • Security and industry expertise
  • Conform to regulatory standards & laws
  • Recognition programs
  • Employee development
  • Create job specifications
  • Conduct assessment testing
  • Bonuses
  • Schedule, prepare & conduct interviews
  • Program performance measures
  • Uniform and equipment sourcing