Florida Rising Magazine FRM March 2019 - Page 33

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HR Costs/Bill Rate

According to the US Department of Labor legally required benefits such as social security, workers

compensation insurance, unemployment and Medicare costs can add an additional 14.5% to your payroll costs.

If you provide other benefits such as health & life insurance, 401K contributions, and/or paid leave time those costs can add an additional 24% to your payroll and operating expenses.

What does this mean to you?

Let’s say your annual in-house security payroll is $75,000 per year. Factoring in the mandated benefits and your actual payroll costs leap to $85,875, that’s over a $10,000 increase. If you offer benefits your actual costs skyrocket to over $105,000. That’s $35,000 additional dollars you’re spending on payroll without any additional personnel or job tasks being performed.

Insurance Savings

You more than likely currently have general liability insurance coverage that protects you and any governing board from losses resulting in accidents or injuries that occur on the property.

Risk is the single biggest factor in determining how much coverage costs. No one anticipates accidents or mistakes. The rising cost of general liability insurance is another area of concern for managers, board members and residents.

If you've had accidents or faced lawsuits in the past then expect to pay more.

A reputable security contractor will carry sufficient liability and workers compensation insurance which will provide you indemnification from losses and employee injuries and illness, thereby reducing your overall insurance costs and risk factors.

Better Training, Oversight and Supervision

As a board member or property manager how much time out of your day do you have to check on and

provide oversight to your security personnel? Do you even know what to look for or what questions to

ask?

Any reputable and reliable third-party security provider should provide comprehensive supervisory and

managerial oversight to its guards including random and periodic unannounced inspections of the site and

the personnel assigned there.

Outside of showing your in-house team where to put packages, which contractors are allowed access and

what the pool hours are, what training has your team received. Does your team have the expertise or

resources to provide that training? A professional security company does.

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