The security guard services industry relies on ensuring that they are committing to the hours, credentials and locations which are needed by their clients. This is essential to delivering a quality service – staff that will arrive on time, properly trained and dressed to deliver the service. However, over 85% of client agreements do not allow for the payment of overtime, and any overtime incurred by guards is considered non-billable overtime (NBOT). Given today’s labor shortage and labor laws (e.g., Obamacare, increased minimum wage, FMLA, etc.), the NBOT rate has increased by over 35%. And with a remote workforce, it is a constant challenge to get real-time data on your staff.
Since you committed to a wage rate and level of service to your clients, these overtime charges are often costs that the security officer firm has to absorb. This can be a major difference in profitability for an organization that is running lean.