The administration costs in the security industry are higher than in other industries due to specific compliance work. In addition to the usual obligations (BAS, tax returns, financial reports, etc.) firms have to cope with other security industry requirements such as recording information for incidents, jobs, keys, and keeping records on all jobs subcontracted to licensees and service providers. Being compliant is expensive due to admin costs. It’s rarely possible to pass these costs on to customers due to the competitive nature of the industry. Large multinationals found the answer to this puzzle many years ago: they started outsourcing processes to third parties to reduce fixed costs and to improve their flexibility. And yes, they still do today.
Security Industry and Compliance Work
Looking at the whole picture
When looking at the overheads directly related to compliance work, one should not only focus on employees’ wages but on a range of activities which contribute to cost. Think of, for instance, the induction process, the ongoing training, the day to day management of staff, superannuation, office rent, etc. To succeed in the security industry, firms need to make sure they keep a lid on all these staff-related costs. This is why successful security companies pay serious attention to employee retention.
Retaining staff: a complicated venture?
It’s not! Retaining an average performance team should not be an issue, but this is not what you want. You will need a top-level team if you are to succeed. When you outsource compliance, accounting and bookkeeping work, you’re giving yourself more room to hire a better in-house team. First you’re left with far more time, and second, your budget to hire people that will add value to your business will also increase.
Let’s take a look at 3 factors that should go into your building a dynamite team.
When you outsource accounting, you avoid bad hires. BOSS provides you with a deep pool of certified and experienced overseas team members that come with an added bonus – you don’t have to directly manage them.
This isn’t to say that you’re denied input into how they work with you. You are in fact encouraged to tweak your relationship with your outsourced team members and their manager so that you work together as efficiently as possible in the manner of your choosing. However, you don’t have to do any daily handling of your overseas team – that’s handled by your assigned manager.
On the flip-side, you do have to manage the people you have working for you at home in your office. When it comes to in-house teams bad hires are a definite possibility. Someone who came across like gold during the interviews might not work out in actual practice. Or they may have a bad attitude which brings morale down.
When you outsource accounting you send the work out and it comes back in a high-quality and timely form. That’s more or less the entire transaction. But with in-house hires you’re not only taking on a worker’s skill-set, you’re also taking on every interaction they will ever have with every other worker in your office (and possibly every interaction they’ll have with clients and prospects, depending on their position).
If a bad hire is bringing down your office it’s up to you to get them out of there. Firing is just as much a part of your job as hiring people, and it can be a game-breaker to keep a bad hire on staff.
Let Anna do the compliance work for you
How it works
- Follow us on Linkedin
- Choose a month: August / September / October
- Get Started!
Anna or one of our experienced staff will work for you the same way as any employee in your office, but will do it remotely.
A zone built for success
Take a look around your workspace – how would you describe it?
The design of your office has a major impact in two main areas. The first is on your in-house staff. Is this a place where a person would want to work? Or does it look like the epitome of some dreary government office environment with drab paint and tired furniture?
The second way your office décor is going to have an impact on your business is the impression it gives to clients. If it’s drab, you’re not going to look very successful. If it’s well appointed, you’re going to look like a firm that gets things done.
Since you outsource accounting, you’re going to have some extra cash lying around. Putting some of that money into making your firm’s office an inspiring place to work will boost your team’s morale as well as making you look successful.
Delegate, trust and be trusted.
Your team is going to be happiest, and certainly at their most efficient, when they know exactly what is expected of them. Talent that hasn’t had their roles clearly defined are always going to be nervous that they’re not giving you what you need.
By the same token, you’re not going to be sure your people are giving you what you need. That means you or your managers are going to have to be micromanaging, constantly looking over the shoulders of your employees. That’s a waste of your time and makes your employees feel like they aren’t trusted.
Employees who don’t feel trusted are going to be much harder to get fired up when you announce the firm’s goals.
One of the side benefits you’ll find you gain when you outsource is that it makes you create clearly defined workflow documents. These may seem confining at first, but those limits are actually going to free up your team and make them much happier in their work. They’ll know exactly what you want from them, and how you want it to be achieved.
- Tax Returns
- Admin Work
- Accounts reconciliation
- Job dispatch / Job receipts
- Contractor payments
- Industry-specific Software operators
Back Office Shared Services (BOSS) is the only Australian outsourcing and offshoring company who specializes in the Security Industry.