How Security Companies Cut Overtime Costs by 30% or More
Overtime is one of the biggest profit killers in contract security. Here are the scheduling strategies and tools that help companies bring labor costs under control.
Overtime is often the biggest controllable cost in contract security. Companies that manage it well protect their margins; those that don't struggle to stay profitable.
Overtime gets out of control from poor visibility, call-offs, and understaffing. Control it with 40-hour visibility, strategic shift design, float pools, and technology that alerts before assignments push into overtime.
Why Overtime Gets Out of Control
Common causes:
- Poor visibility: Schedulers don't see total hours until it's too late
- Call-offs: Last-minute absences force overtime fills
- Understaffing: Not enough guards to cover posts
- Inefficient scheduling: Not optimizing guard availability
- Client demands: Scope creep without pricing adjustment
The Impact of Better Tools
Companies using digital scheduling and communication tools see significant overtime reductions. Here's the typical breakdown:
Monthly Overtime Hours: Before vs After
Impact of digital scheduling and communication tools
Monthly savings: 55 overtime hours at $27/hr (1.5x of $18) = $1,485/month or $17,820/year
Scheduling Strategies
40-Hour Visibility
The most basic control: know where every guard stands against 40 hours before assigning additional shifts. Color-coding or alerts when guards approach 40 hours helps.
Strategic Shift Design
Design shifts that minimize overtime exposure:
- Avoid 12-hour shifts when possible (limits weekly capacity)
- Consider 8-hour shifts with clear coverage plans
- Build in part-time positions for flexibility
Float/Relief Pool
Maintain a pool of part-time guards who want extra hours. When overtime would otherwise be needed, pull from the pool instead.
Technology Helps
Scheduling software can:
- Show real-time hours worked across all guards
- Alert before assignments push into overtime
- Suggest available guards under 40 hours
- Track overtime patterns by site, guard, or time period
Managing Call-Offs
Call-offs drive emergency overtime. Reduce them by:
- Attendance policies: Clear expectations with consequences
- Shift trading: Let guards swap shifts instead of calling off
- Advance notice incentives: Reward early notification
- Open shift pools: Make it easy to claim open shifts
Pricing for Overtime
When overtime is unavoidable, don't absorb the cost:
- Build overtime assumptions into contract pricing
- Bill overtime at premium rates
- Document overtime causes for client discussions
Measuring Progress
Overtime Benchmarks
- Industry average is often 5-10% of hours
- Well-managed operations run 3-5%
- Above 10% indicates a problem
Key Takeaways
- 40-hour visibility is the most basic overtime control
- Float/relief pools reduce emergency overtime needs
- Make shift swapping easy to reduce call-offs
- When overtime is unavoidable, bill it at premium rates
Calculate Your Potential Savings
Want to see how much you could save by reducing overtime and improving scheduling efficiency? Use our ROI calculator to estimate your annual savings:
Security Guard Software ROI Calculator
Enter your numbers to estimate potential savings
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Written by
TeamMapTeam
TeamMap builds modern workforce management tools for security teams, helping companies track, communicate, and coordinate their field operations.
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