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  • Pay ratios

    I was wondering if anyone knows what he average ratio is between how much a contract copmany charges its clients and how much the guards are paid. I mean if the company charges $20.00 an hour to the client would the guard expect about $9.00 and which companies have the smallest ratios.

  • #2
    I use contract people once in a while to backup my in-house staff when the hotels are busy. Since we only use the company once in a while we pay the max rate. It is just below $20/hour. The guards are paid just below $13/hour.
    I enforce rules and regulations, not laws.
    Security Officers. The 1st First Responders.

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    • #3
      I think when I was with TWC and making 12.00/hr. I think I was told we were rated at 27/hr.
      "Alright guys listen up, ya'll have probably heard this before, Jackson vs. Securiplex corporation; I am a private security officer, I have no State or governmental authority. I stand as an ordinary citizen. I have no right to; detain, interrogate or otherwise interfere with your personal property-... basically all that means is I'm a cop."-Officer Ernie
      "The Curve" 1998

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      • #4
        I've heard a ratio of 60 percent to the employee, 30 percent to the company for overhead, profit is about 1.5-2 percent.

        This sounds like a question for HR Dickenson.
        Some Kind of Commando Leader

        "Every time I see another crazy Florida post, I'm glad I don't work there." ~ Minneapolis Security on Florida Security Law

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        • #5
          A decent employee-minded company will typically pay its officers 60% of the bill rate. So if the client was being billed $20.00 per hour, then the officer would make $12.00 per hour. Some larger and/or greedy companies will typically pay 40-45% of the bill rate. Meaning if the client was being billed $20.00 per hour, then the officer would make $8.00-$9.00 per hour. So to answer your question, I would have to say the average is likely 45-50%. That's my guess though, so don't take that to the bank as they would say.
          "To win one hundred victories in one hundred battles is not the highest skill. To subdue the enemy without fighting is the highest skill." Sun-Tzu

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          • #6
            When I managed an in-house security force I had to use a contract company to supplement my guards. I specified in the contract that the contract guard had to be paid a minimum of $10 per hour, so the contract company billed me $20 per hour.

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            • #7
              That sounds about right. Surprised they didn't bill you $24.00 an hour.
              Some Kind of Commando Leader

              "Every time I see another crazy Florida post, I'm glad I don't work there." ~ Minneapolis Security on Florida Security Law

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              • #8
                Per the shop steward, we're billing the client at just over $51.00 an hour, while we're getting $21.70 of that.

                Think of it like this: We're billing at a GS-15, Step 1, and being paid at a GS-09, Step 1.

                Some overhead...I still wonder where it goes.
                Last edited by OccamsRazor; 08-26-2006, 02:56 PM.

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                • #9
                  Originally posted by wilrobnson
                  Per the shop steward, we're billing the client at just over $51.00 an hour, while we're getting $21.70 of that.

                  Think of it like this: We're billing at a GS-15, Step 1, and being paid at a GS-09, Step 1.

                  Some overhead...I still wonder where it goes.
                  Bet it's not to ne uniforms and gear!

                  I remember seeing somewhere when I was with wackyhut that the hospital was being billed like 26 an hour for me as a sup and I was making 11.50

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                  • #10
                    Originally posted by wilrobnson
                    Per the shop steward, we're billing the client at just over $51.00 an hour, while we're getting $21.70 of that.

                    Think of it like this: We're billing at a GS-15, Step 1, and being paid at a GS-09, Step 1.

                    Some overhead...I still wonder where it goes.
                    So does the general accounting office.....
                    Security: Freedom from fear; danger; safe; a feeling of well-being. (Webster's)

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                    • #11
                      Originally posted by Mr. Security
                      So does the general accounting office.....
                      GSA requires all General Schedule vendors to provide complete breakdown for services.

                      They know where its going.
                      Some Kind of Commando Leader

                      "Every time I see another crazy Florida post, I'm glad I don't work there." ~ Minneapolis Security on Florida Security Law

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                      • #12
                        Originally posted by N. A. Corbier
                        GSA requires all General Schedule vendors to provide complete breakdown for services.

                        They know where its going.
                        Paper trails are not difficult to fudge. Companies (including highly respected auditing firms) have generated plenty of financial reports that weren't worth the paper they were printed on, even though the numbers added up correctly.
                        Security: Freedom from fear; danger; safe; a feeling of well-being. (Webster's)

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                        • #13
                          That is the one thing I don't miss about contract work: Someone else getting paid almost as much (in some cases more) that I was for me being on the line.

                          I know, without the contract company I wouldn't have had a job, and they have overhead and need to make a profit yadda yadda. It still sucked.

                          While I did the best job for the client I could, there was many times (usually while dealing with the more hard to please "I own you" type clients) I wanted to tell them "hey, I know you're paying $20 per hour for me to be here, but I'm getting $8 an hour, so I'll give you $8 worth of work, and you call the company for your other 12 bucks". lol

                          In-house is IMO always superior from the worker's perspective, it has been for me.
                          ~Black Caesar~
                          Corbier's Commandos

                          " "The trouble with Socialism is that eventually you run out of other people's money." ~Margaret Thatcher

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                          • #14
                            Pay Ratios

                            Originally posted by N. A. Corbier
                            I've heard a ratio of 60 percent to the employee, 30 percent to the company for overhead, profit is about 1.5-2 percent.

                            This sounds like a question for HR Dickenson.
                            Thank you, N.A.

                            The average, ballpark, ratio is between 65% and 70%. This varies by state based on payroll tax and insurance rates, among other factors. California, for example has terrible Workers Comp. rates (10% ++). Other states average more like 5% depending on your modification factor (Loss History). Again, this is a very general average. I personally have a client in Texas that normally has a very high bill and pay rate and won't take on a job above 60%. He's not growing very fast, but his officers enjoy working there and he's paying the bills.

                            Keep in mind, this ratio is only valid in terms of a contract where the only real cost is personnel. If you start adding cell phones, tour systems, etc., the bill rate has to increase.
                            Richard Dickinson
                            Dickinson Security Management Group, LLC
                            DSMG Provides a Variety of Software Products and Consulting Services to the Contract Security Industry
                            www.hrdickinson.com

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