Security’s next balancing act: retention, margins and modernisation

The state of physical security in 2025 tells a story of pressure and transformation. According to the 2025 Physical Security Operations Benchmark Report, 42 per cent of providers name turnover as their top operational challenge. Pay rates are climbing, yet so are coverage gaps. Supervisors juggle scheduling volatility and compliance demands, while clients expect consistent visibility and faster response times. The industry’s backbone – its officers – is under strain, and firms are rethinking how to balance workforce stability with economic reality.

 

A workforce under strain

 

The survey, which gathered responses from more than 300 security professionals across North America, Europe and the UK, found that 65 per cent represent private security providers. Within this group, labour volatility is severe. Some firms report turnover levels approaching 100 per cent. Wages have risen significantly, but higher pay has not solved the issue. Unarmed officers now earn an average of $26 to $32 per hour, and armed officers frequently exceed $50. Even with these increases, 40 per cent of providers report more than 5 per cent of overtime hours remain non-billable. This is a direct hit to profit margins.

 

With margins tightening, many providers are reimagining their staffing models. The focus has shifted from headcount to productivity. Mobile apps, digital post orders and real-time dashboards are helping firms maintain visibility without expanding payroll. These connected systems improve accountability, reduce administrative errors and allow supervisors to make data-informed adjustments before coverage gaps affect service quality.

 

Margins, billing and client expectations

 

Billing rates have followed labour costs upwards, typically $26 to $32 per hour for unarmed guards and $50 or more for armed officers. While necessary, these adjustments test client relationships. Providers who pair rate increases with transparent communication and clear data on performance are better positioned to sustain trust. The report highlights that automation and data-driven reporting are becoming as essential to client retention as they are to cost management.

 

Firms are also using integrated scheduling and reporting tools to manage non-billable overtime and improve financial forecasting. Streamlining compliance and documentation saves time and helps firms defend billing accuracy, an increasingly important factor as clients scrutinise every line item.

 

Technology as an efficiency multiplier

 

More than half of providers (53 per cent) already use AI or automation tools, and another 55 per cent of non-users are exploring them. For most, the motivation is straightforward: reducing manual tasks and stabilising costs. The greatest gains come from integration: linking timekeeping, incident reporting and client communication in one platform. When compliance data, payroll and field reports live in the same ecosystem, firms eliminate duplicate entry and gain a more accurate view of labour utilisation.

 

Investing in people, not just systems

 

While technology delivers efficiency, human engagement remains the cornerstone of success. The top three retention strategies identified in the survey – career advancement (60 per cent), incentive programs (56 per cent) and training and certification (52 per cent) – show that firms investing in professional development are retaining talent at higher rates. These programs build morale and create measurable improvements in service quality and client satisfaction.

 

Looking ahead

 

The 2025 Physical Security Operations Benchmark Report captures a sector in transition. Security providers that combine smarter workforce strategies with connected technology will navigate the coming years with greater resilience. Wage increases and automation are no longer separate conversations but are two parts of the same effort to preserve both people and margins.

 

Security officers remain central to every operation. Supported by better tools, data visibility and clear paths for growth, these professionals are emerging as the foundation for sustainable performance in a changing industry.

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To see how leading organisations are adapting, explore the 2025 Physical Security Operations Benchmark Report