The Hidden Costs of Understaffing in Security
The Hidden Costs of Understaffing in Security: A Real-World Case Study in India
Background Story: One of our customer in the manufacturing domain, eager to cut security costs, made a seemingly smart move:
- Replaced three night guards with barbed wire fencing
- Instructed the remaining guards located at front gate to patrol the backyard on fixed intervals
- Four months later, thieves exploited the gap in security, making off with goods worth ₹15 lakhs – a loss ten times greater than the savings from reduced staffing.
The False Economy of Understaffing
Does reducing security personnel actually save money for your company?
At first glance, it might seem so. Fewer guards mean lower expenses, right? However, as our customer’s story illustrates, the short-term savings is mostly dwarfed by the devastating costs of a security breach.
A Closer Look at the Case Study
Our customer believed that barbed wire and patrols provided similar protection levels. Unfortunately, this assumption ignored a critical factor: human observation and response. The thieves carefully observed the new security routines, timing their heist to coincide with the guard’s absence in the backyard
Even the installed CCTV cameras proved useless. The footage clearly captured the thieves’ entry, but because it wasn’t monitored in real-time by on-site guards, the breach went unnoticed until it was discovered the next day when factory commenced its operations 
Quantifying the Cost
Let’s break down the costs involved:
- Direct Loss: ₹15 lakhs worth of stolen goods.
- Indirect Costs:
- Raw material stoled led to pause for a week
- Potential damage to the company’s reputation
- Increased insurance premiums
- Psychological Impact: The emotional toll on employees and the sense of insecurity it creates.
- Total Estimated Loss: Far exceeding the ₹1.6 lakhs our customers saved in staffing costs over four months.
Investing in Adequate Staffing and Technology: The True Cost-Saver
Looking back, if our customer continued to maintain adequate security staff, cost incurred would have been a fraction of the losses incurred. This includes:
- Salaries and benefits: Often offset by increased productivity, reduced theft, and a safer work environment.
- Technology: When combined with human observation, technology like video analytics can significantly enhance security.
Technology helps reduce costs
Learning from the experience, if customer had discussed with us on what would be an effective way to save cost while ensuring adequate security, we would have recommended the following:
- Upgrading their CCTV cameras with a Video Analytics Solutions that provided real time alerts to the Security Supervisor on site.
- A Single guard to be located in the backyard,
- A revised security process that allowed humans and technology to work hand-in-hand
This is exactly what our customer did after the incident.
- Upgraded their CCTV system with video analytics solution for key locations across their factory premises
- Reinstated a guard in the backyard
- The new security system where technology and human presence worked hand-in-hand actually resulted in cost savings of around 20%.
- Identifying over 20+ Security breaches in the past 6 months
The Bottom Line
Never reduce your security personnel expenses at the cost of compromising the safety of your premises. Evaluate technology solutions such as Video Analytics to empower security personnel, thereby actually saving costs without any compromise in your security.
Do bear in mind that y investing in adequate staffing and the right technology, you’re not just protecting your assets – you’re investing in the long-term success and stability of your business.
Interested in Reducing your Security Expenses
Don’t let short-sighted cost-cutting jeopardise your company’s security. Schedule a call with us today to learn how we can help you develop a comprehensive and cost-effective security plan that leverages both technology and human expertise.