To start with, hiring of security guards alone in Dubai is definitely more costly than paying their salaries. Indeed, such costs as visa sponsorship, SIRA training and licensing, relief shifts, supervision and liabilities should also be considered in this case. All these additional costs can be summed up in one pack in case you choose outsourcing. In-house solution is suitable for one workplace and for an inflexible work schedule. Otherwise, outsourcing is definitely preferable due to the very nature of this kind of business.
| At a glance
Compare loaded cost per guard per month, not salary. Salary is usually under half the real figure. A single 24-hour post needs four to five guards once relief, rest days and leave are counted, whichever model you choose. Licensing does not disappear when you bring security in-house. Guards still need individual SIRA licences, and in-house arrangements may fall within SIRA’s remit too. Check before you assume. In-house gives you control of culture and continuity. Outsourcing gives you flexibility, relief cover and someone else carrying the licensing burden. Plenty of organisations run both: in-house for the front desk, outsourced for nights, weekends and surge cover. |
What the two models actually mean
In-house solution implies that security guards become your staff members and that you are responsible for their visa sponsorship, salaries, training and licensing, for their scheduling and liability for their actions.
Outsourcing is implied by the order of guards from licensed firm in accordance with contract and their further employment as employees of the supplier. In turn, you state the level of security coverage you want to have and the supplier provides you with such coverage at some rate per post or guard.
However, there is one more approach that is frequently applied in practice. In fact, it involves the use of two approaches mentioned above. Namely, you hire guards during day time and on weekends as your staff members, and during the rest of time the outsourcing company provides security coverage.
The cost comparison, line by line
It is the moment when your decision is to be made. However, it is also the moment when mistaken calculation may mislead you in the decision making process. The cost of salary is quite clear to see. Let’s take a look at the table below.
| Cost line | In-house | Outsourced |
| Salary | You pay directly | Inside the rate |
| Visa and sponsorship | You coordinate and pay | Provider’s responsibility |
| SIRA training and licensing | You arrange and fund initial licensing | Inside the rate |
| Licence renewals | You monitor and finance, per guard | Provider’s responsibility |
| Accommodation and transport | Often yours to provide | Usually inside the rate. Confirm this |
| Uniform and equipment | Yours to buy and replace | Inside the rate |
| Leave & sickness cover | You resource it, or the post goes empty | Provider’s responsibility, contractually |
| Supervision | You hire a supervisor | Within the price, according to the supplier’s ratio |
| End of service benefits | Yours, from the very first day | Provider’s responsibility |
| Recruitment and replacement | Yours, each time | Provider’s responsibility |
| Public liability insurance | Yours to arrange and control | The Provider’s, but you have to find the limit |
| Scaling up or down | Slow. Visas and training take time | Quickly. Typically an amendment to the contract. |
The reality of the situation is that none of them can be sure that one is going to be cheaper than the other. The in-house approach doesn’t have to pay anything to the provider in terms of the profit margin but at the same time outsourcing gets rid of the overhead of a dozen administrative costs which makes it variable instead of being fixed. And in the end everything just depends on how well you know what you want.
How to work out your real in-house cost
Before we begin comparing against providers, we need to be sure that our internal cost is calculated correctly first:
- Headcount of personnel involved: Using personnel instead of positions, 4 to 5 guards for a 24 hour position considering the number of relieving days and holidays. All in-house cases which assume there will be only need for three guards are unrealistic.
- Dividing the annual cost to 12: Visa, licensing, training, uniforms, insurance and end of service gratuity are annual costs and therefore need to be converted into monthly costs first.
- Cost of management: That would be the cost of either hiring a manager or handling it yourself.
- Cost of filling the gaps: How about a wake-up call by the guard at 2 am? There will be an increment in cost in this regard because you will have to pay extra costs as a result of the overtime that will be charged. This is how you measure the outsourcing promise against cost-saving efforts.
- Comparison of the cost: Compare the cost of employing the security guards within your office premises with the quoted price by the outsourcer for providing similar security coverage.
Licensing does not go away when you go in-house
One is usually amazed at this point. The internal security guards will be subject to Security Regulations laws of Dubai. All the security staffs working in Dubai have been trained and licensed by the Security Industry Regulatory Agency (SIRA).
Even the internal employment of the guards can fall under licensing requirements according to the laws set by SIRA. In such cases, it is always recommended that you seek clearance from the SIRA prior to arguing cost-saving efforts because your argument will be affected by their reply. Here is some information on the SIRA license.
Aside from this, there are some legal requirements for those properties which are classified as critical sectors according to the law. These properties include:
When in-house works well
- Where there exists a fixed and certain operation schedule with no seasonal variations.
- Where the need for guard is an integral part of the brand image, like a member’s club or a very exclusive flagship store.
- Where the guards need knowledge of people or processes which can only be achieved in months’ time.
- For organizations which have HR and visa facilities in place, adding a few more workers will be easier without gaining any new skills.
When outsourcing works better
- These are the uniforms which depend on the day or season or even the task, like construction and retail sales rush.
- There are different places, particularly in various emirates, where it is not possible to have a list of guards maintained internally.
- Need for some quick expansion. It becomes easy for the service provider to provide a post in a few days; however, it is not the same for visa.
- Specialized protection services such as close protection, event and surge where it does not make any sense to have the resources maintained internally due to irregular demands.
- Those organizations which do not wish to handle the problems associated with licenses, relief and security liabilities internally.
Landmark Security provides guards in Dubai and other parts of UAE from 2004 in office buildings, shopping centers, hotels, hospitals, warehouses and gated communities. We would be equally pleased to tell an organization about the advantages of maintaining internal guards as the ideal choice for a single post.
Running a hybrid model
Given that you have your own security guard force, and that your vulnerabilities exist in the evening time, weekends or peak hours, you do not need to change it. There are three factors given below which will help you to make your hybrid model work:
- Develop single chain of command: Your hybrid model would definitely not work if it is not known beforehand who will be controlling the outsourcing supervisor of your guard force.
- Use same reporting format: Use same reporting format for both of your forces, otherwise you will never get complete information on exchanges.
- Properly describe your exchanging process: Exchange of shifts between your in-house and outsourced guards will become the key factor of information loss.
Frequently asked questions
Is it cheaper to employ security guards directly or use a security company in Dubai?
None of these models ensures that you will make cost savings right away. In-house model will definitely allow you to save provider’s profit margin, but it involves visa sponsorship, SIRA licensing, renewal and re-issue, replacement, supervision, uniforming, insurance and end-of-service benefits. Count how much you have to pay for each guard every month and compare it with providers’ costs.
How many guards do I need to employ for a 24-hour post?
From four to five, including days of relief, rest, and annual leave. Depending on the schedule of shifts (8 hours or 12 hours). The business case for using three guards for 24-hour guarding position falls at the first stage of illness or vacation of any guard.
Do in-house security guards in Dubai need a SIRA licence?
Security guards, who work individually in Dubai have obtained an authorization from SIRA after passing all required tests, and this regards individual guard working in this post. Clarification should be done at SIRA whether the organization, that needs services of this guard, should obtain an authorization from SIRA.
Can I use both an in-house team and an outsourced provider?
Yes, it is true that many companies choose this approach. The division of responsibilities can be done in such way that organization maintains its own guard staff for reception and daytime guarding, while the guarding company should do nighttime, weekend and relief guarding. Definition of one chain of command, reporting and briefing.
How quickly can an outsourced provider add cover?
Days, since after modification of contract, because the provider has its own guards, who have licenses. The employment of individual guard involves the recruitment, visa obtaining and SIRA authorization and takes time of weeks or months.
Who is liable if an in-house guard makes a mistake?
It is you, if you maintain your own employees. You will not be responsible for anything according to the contract, unless you will perform the services yourself, and that is why you should know about the public liability limit and indemnity clause in the contract.
Work out which model fits
In case you furnish us with all the necessary data about your place, your schedule of work and the nature of the requirement – whether it is recurring or non-recurring – we will be able to tell you the price of outsourcing such a task compared to the in-house team doing it for you. In case, however, we find out that it is more efficient for you to have an in-house team, we will let you know.
