In today’s security industry, companies that fall behind on salaries aren’t just struggling to hire, they are actively losing ground. While many firms focus on the immediate costs of raising wages, the true price of offering below-market compensation is far greater – including everything from high turnover to lost contracts.
Hiring at the lowest possible rate may seem like a smart financial move until faced with the results. Below-market salaries attract candidates who are often underqualified, inexperienced or are simply using the job as a stepping stone for something better.
The Hidden Costs
Lagging behind on salaries isn’t just a hiring problem, it is a business problem. The cost of turnover, missed deals and damaged reputation far outweighs the investment in competitive pay. Here are three hidden costs of offering positions at below-market salaries:
1. Extended vacancies: Companies offering below-market salaries often face longer hiring cycles. Skilled security professionals – technicians, project managers, salespeople, etc. – have a lot of options. If the pay is outdated, candidates will simply take offers elsewhere, leaving your roles vacant. This leads to project delays, overworked teams, and lost revenue.
2. High turnover and replacement costs: Retaining talent is just as important as recruiting it. Security professionals know their worth, and if competitors are paying significantly more, they won’t hesitate to make a move. The cost of turnover is substantial – replacing an experienced technician or project manager can cost up to twice their annual salary when factoring in recruiting, training, and lost productivity. Beyond the direct costs, constant turnover drains company culture. When employees see colleagues leaving for better pay, morale drops, engagement suffers, and productivity declines.
3. Lost business opportunities: When you can’t staff projects quickly, clients notice. If a competitor can deploy a team faster because they are paying market rates, they will win the contract. Losing business due to staffing gaps isn’t just a short-term issue; it damages long-term relationships and your company’s reputation.
Four Ways to Stay Competitive
In today’s security job market, companies that fail to adapt will struggle to survive, while those that prioritize compensation will continue to attract top talent and grow. If your company has fallen behind in salary offerings, here are four steps you can take to catch up:
1. Regularly benchmark salaries: Use industry salary surveys, recruiter insights, and competitor job postings to assess where your pay stands. Make adjustments annually, not just when hiring becomes a crisis.
2. Offer more than just base pay: If immediate salary increases aren’t feasible, strengthen your overall compensation package with health benefits, retirement contributions, bonuses, training opportunities, and flexible work arrangements. These can make up for a slightly lower base salary.
3. Prioritize pay for high-impact roles: Not every position needs an immediate salary adjustment, but roles that directly impact revenue – such as lead technicians, project managers, and sales professionals – should be prioritized.
4. Communicate career growth opportunities: Pay is important, but long-term growth also matters. Show candidates and employees a clear path for advancement within your organization. A structured development plan can be a deciding factor for those weighing multiple offers.
