Back to Blog
Industry Insights

The Hidden Cost of Running Your Back Office In-House

Most security company owners underestimate their back-office costs by 40-60%. When you add up salaries, software, turnover, training, and the hours you personally spend putting out fires, the numbers tell a very different story.

March 17, 2026
2 min read

You're Spending More Than You Think

Ask any security company owner what their back-office costs and they'll give you a number that covers salaries. Maybe they'll add software subscriptions. But the true cost of running operations in-house is typically 40-60% higher than most owners realize.

The Visible Costs

Staff Salaries

For a 200-guard operation in the US, you typically need:

  • Scheduler / Dispatcher: 1-2 people — $35,000-$50,000 each
  • Billing / Invoicing: 1 person — $40,000-$55,000
  • Payroll: 1 person — $40,000-$55,000
  • HR / Recruitment: 1-2 people — $45,000-$60,000 each
  • Admin / Data Entry: 1 person — $30,000-$40,000
  • Office Manager: 1 person — $50,000-$65,000

That's 7-9 people. Total: $280,000 to $450,000+ per year in salaries alone.

Software and Tools

Guard management software, scheduling tools, billing systems, HR platform, accounting software, communication tools. Each seems affordable on its own. Together: $1,500-$5,000+ per month.

The Hidden Costs

Benefits and Overhead

Health insurance, payroll taxes, workers' comp, PTO, retirement. The standard rule: add 25-35% on top of every salary. That $350,000 payroll actually costs you $440,000-$470,000.

Turnover

Back-office turnover in security averages 20-30% per year. Every departure costs $5,000-$15,000 in recruiting, training, and lost productivity.

Your Time

How many hours per week do you personally spend managing office issues? At 10-15 hours per week, you're spending 25-35% of your working life on tasks that don't grow your business.

Error Costs

Underbilled hours. Overpaid overtime. Missed compliance deadlines. Most security companies lose 2-5% of revenue to back-office mistakes they don't even know about.

The Real Number

For a 200-guard operation, the true annual cost:

  • Salaries: $350,000
  • Benefits & overhead: $105,000
  • Software & tools: $36,000
  • Turnover costs: $25,000
  • Error & revenue leakage: $40,000
  • Your management time: $50,000 (equivalent)

Real total: ~$606,000 per year

Most owners estimate $350,000-$400,000. The real number is closer to $600,000.

There's a Better Way

Managed back-office services for a 200-guard operation typically cost 35-50% less — with no turnover, no training overhead, and specialists who already know the security industry. The math speaks for itself.

Share this article
security company costsback office overheadin-house vs outsource security