How Much Does Security Cost? A Budget Tool

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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 & Benefits:

Taxes
Insurance/Liability
Vacation
Medical Benefits
Holidays, Sick Time, Personal Days
Retirement Benefits
Overtime
Tuition Reimbursement
Paid Break Time

Uniforms

Office Space

Recruiting, Testing, Screening & Hiring

Classified advertising space
Drug testing
Applicant tracking system
Background screening
Conduct previous employment verification
Skill assessment testing

Training Costs

Training Time
Trainer’s Time/Salary
Training Materials and Learning Management System
New Hire and Ongoing Training
Management Training

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 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 and Access to Best Practices
Conform to Regulatory Standards and Laws
Recognition Programs
Employee Development
Create Job Specifications
Conduct Assessment Testing
Bonuses
Schedule, Prepare for, and Conduct Interviews
Program Performance Measures
Uniform and Equipment Sourcing

Download the full article to view the budget tool to help you analyze the actual costs of your security program.