Over the past year there has been a minimum 23.1% increase in base costs of what a physical security service is today in Ireland. And from 2023 to 2026 it is estimated this cost will be 32.7% on the base cost.
The escalating expenses of physical security services are creating significant hurdles for both businesses and individuals. This upward trend which is estimated and forecasted to continue beyond 2026 is driven by factors like inflation, increased operational costs, maintaining national minimum wage differentials on the core rates of pay, a shortage of skilled labor and the need to retain those people in the industry today and tomorrow.
Despite these challenges that are coming down the line, there are strategic measures that can be employed to effectively manage and even reduce these costs.
The expertise of trained security officers remains indispensable. However, with an unprecedented 81% of Irish companies facing difficulties in attracting skilled talent, finding, and keeping qualified security personnel has become both challenging and costly.
Understanding the cost influencers
Before we can tackle the challenge of escalating costs in the Irish Security industry that are here now and will increase over the next few years, it's crucial to grasp the underlying factors driving these increases.
There are several key elements contribute to this trend:
- Inflation: General economic inflation ripples through all sectors, including Security services, inflating costs across the board in Ireland.
- National Minimum Wage (NMW): the low wage commission have recommended that the NMW be at €15.00 by the 1st of January 2026
- Living wage to replace minimum wage in Ireland by 2026: A new living wage (LW), to replace the current minimum wage, is to be phased in for Irish workers, starting in 2023. the living wage is to be set at 60% of the median wage each year
- From the 1st of January 2022 (€10.50) to the 1st of January 2026 (€15.00) this is a €4.50 increase or 42.8% in the NMW of 2022 and the Living Wage of 2026
- Regulatory changes: New regulations, such as the Employment Regulation Order (ERO), mandate higher minimum wages, directly impacting overall expenses.
- Future Security ERO’s will need to keep pace with the NMW and the LW percentage increases to avoid an erosion of the core pay of Security staff in Ireland
- Labor costs: Labor is a major expense in security services, significantly influenced by statutory orders like the ERO that raise wages.
- Labor shortage: The 2024 Talent Shortage Report by ManpowerGroup Ireland reveals a challenging hiring landscape. According to their research, 81% of companies in Ireland are struggling to recruit essential staff due to the competitive market and high expectations from candidates. This labor shortage, combined with low unemployment and ongoing wage inflation, underscores the necessity for businesses to enhance their employer value propositions to attract and retain skilled talent.
Understanding these factors is the first step in devising strategies to manage and mitigate rising costs effectively.
Enhance security and optimise costs with innovative solutions
In today's dynamic landscape, adopting cutting-edge security measures is essential for optimising long-term costs.
As one of Ireland's premier security solution providers, Securitas Ireland delivers a comprehensive suite of services, including on-site, mobile, and remote guarding, advanced technology solutions, fire and safety services, and corporate risk management.
Tailored to meet the unique needs of each client, our security solutions blend various protective services and technologies to ensure maximum effectiveness and cost efficiency.
“Security is no longer a one dimensional measure. Combining protective services & modernising the onsite solution ensures a long term costing strategy & addresses modern threats with modern technologies. Securitas recognises the rate of rising costs isn’t sustainable for many businesses. Allow us to help you with a refreshed security risk assessment to understand how we can best design a solutions to your physical threat with today’s technologies.”- Peter McElhone, Solutions Development Manager, Securitas Ireland
Explore our website to discover our security solutions tailored for various industry verticals.
Implementing smart, cost-effective security measures
To effectively manage rising costs, consider these strategic approaches:
- Thorough risk assessment: Prioritise your security needs by conducting a detailed risk assessment, ensuring resources are allocated where they are most needed.
- Integration of advanced technologies: Utilise cost-effective technologies such as CCTV, access control systems, remote monitoring, and alarm systems. These tools enhance security while minimising the need for continuous human surveillance.
In the ever-evolving landscape of security, regular assessment and refinement of strategies and expenditures are crucial. By conducting periodic audits and performance evaluations, we uncover inefficiencies and identify opportunities for optimisation, ensuring robust and cost-effective security solutions.
At Securitas Ireland, we conduct thorough risk assessments to address the unique needs of each client, regardless of their industry, size, or location. Our solutions are crafted by blending local expertise from our protective services branch managers with specialised skills from our diverse service teams.
Utilising our advanced Securitas Risk Assessment tool, we swiftly pinpoint and evaluate potential risks. This combination of expert knowledge and cutting-edge technology allows us to tailor a bespoke, integrated security solution that aligns perfectly with your unique requirements.
By integrating various security services with cutting-edge technology, Securitas Ireland delivers customised, cost-efficient solutions that precisely align with your requirements. Whether you require comprehensive security management or targeted solutions, we are committed to providing effective protection that evolves with your business.
Benefits of our comprehensive security solutions
Our innovative solutions offer numerous benefits, including:
- Standardised contracts: Simplified and comprehensive agreements that streamline security management.
- Data-driven insights: Enhanced access to actionable data that drives proactive security measures.
- Improved efficiency: Greater operational efficiency through advanced technological capabilities.
Discover how Securitas' security solutions have enabled clients to save money, enhance security, and increase efficiency. Find out more on our Solutions Stories page.
Regulatory changes with confidence
Stay ahead of regulatory shifts, such as the National Living Wage increases, new Employment Regulation Order (ERO) effective 1 July 2024, which raises the minimum hourly wage for security sector workers from €12.90 to €14.50 and the potential minimum 18% increase in costs from July 2024 to 2026 or 18 months.
Proactively understanding and adapting to these changes will aid in budgeting and planning for increased labour costs, ensuring your security operations remain both compliant and efficient.
At Securitas Ireland, our true strength lies in our people. They are the heartbeat of our company, the force that drives our success through their unmatched skills and talents. Their unwavering commitment to ensuring the safety and security of our clients and community is nothing short of remarkable. Through their integrity, vigilance, and helpfulness their professionalism shine through all the time, they foster a secure environment that allows everyone else to go about their daily lives without worry.
Securitas Ireland are pleased that a good pay increase is just around the corner for most of our staff.
"Securitas Security Services Ireland proudly supports the news of the new ERO pay increases for workers in the Irish security sector. This Irish Security industry wide decision goes someway to valuing, appreciating and uplifting the hard-working Security professionals in Ireland who tirelessly everyday protect our communities with exceptional dedication and skill, these workers have done for many years without many ERO’s and especially so during trying times like the recent global pandemic." - Brian Doyle, Key Account Manager, Securitas Security Services Ireland.
We are also mindful of the impact these changes will have on our clients. While the associated cost increases pose challenges, Securitas Security Services Ireland are committed to working closely with our clients to navigate this transition together. Our top priority remains maintaining our high standards of service, ensuring ongoing excellence in safety and Security solutions.
Training and development
Investing in the continuous development of security personnel is paramount to enhancing overall effectiveness. At Securitas, we believe in seizing every opportunity to improve. Our reputation as a leader in security stems from our commitment to nurturing the right skills, expertise, and experience in our people through long-term investment.
We offer a comprehensive range of learning opportunities, including classroom training, a bespoke online learning management platform, mentoring, on-the-job training, and daily knowledge sharing among colleagues. Whether it's refining patrol skills or developing leadership qualities, Securitas provides extensive resources for continuous improvement. Discover more about our commitment to upskilling our staff here.
Conclusion
The rising costs of physical security services and the costs in people to service Security contract in Ireland is going to pose significant challenges for clients, but proactive management and strategic decision-making can mitigate these impacts.
By embracing efficient security solutions, adapting to regulatory changes, and implementing cost-effective measures, businesses can maintain effective security operations.
Continuous evaluation and adjustment are essential to keeping security expenditures manageable and aligned with organisational goals.
A convergence and merging of well renumerated, skilful, and professional People and latest cutting-edge dynamic Security Solutions Technology is the one way to head off the rising cost issues that are here now and will be exacerbated in the future with only people focussed services.
As the Securitas Ireland country president notes, “We are committed to changing the face of the way we do business by being the leader in Technology and Solutions driven Protective Services. Securitas will lead and give directional support for all your risks, both financial and operational. To sustain you, the Client, and us, by changing our service offering from Commercial to Quality driven Solutions. Our Protective Services are the perfect combined solution for you and us to go forward into a digital age and drive your spend in the best direction that suits your business needs.
We will do this by maximising efficiency, allowing us to look at your economic landscape, and by being client-centric with first-class digital reporting, using the latest state-of-the-art technology solutions that fit your every need. Our experts carry out the latest up-to-date Risk assessments to show you a new way to protect your business in the most viable and robust way. By delivering on our promise, we will give you the full potential of our Protective Services.
- On Site Services
- Mobile Services
- Remote Services
- Electronic Services
- Fire & Safety
- Corporate Risk Management
Come and experience it for yourself; you won’t be disappointed.” - Ray Hoare, Country President, Securitas Ireland
