Why Some Security Guard Companies Resist Paying Sick Leave

The security industry has long grappled with the question of sick leave benefits, and many companies remain reluctant to offer paid time off for illness. Understanding their reasoning reveals the complex economics of a labor-intensive, low-margin business.

The Razor-Thin Profit Margins

Security guard companies typically operate on profit margins between 2-8%, among the lowest in the service industry. Unlike tech companies or manufacturers, they can't easily scale or automate their core product: human presence. Every dollar spent on employee benefits directly impacts their bottom line, making sick leave feel like an unaffordable luxury rather than a standard benefit.

The Billing Structure Problem

Most security contracts are billed at fixed rates negotiated months or years in advance. When a guard calls in sick, the company must still provide coverage—often paying overtime rates to a replacement guard while receiving the same contracted payment. This creates a financial double-hit: paying two employees for one position without additional revenue.

High Turnover Amplifies Costs

The security industry experiences annual turnover rates often exceeding 100%. Companies argue that offering sick leave to employees who may only stay a few months creates an administrative burden and increases costs for workers who haven't demonstrated long-term commitment. They fear that generous sick leave policies might even be exploited by short-term employees.

Competitive Pressure

In an industry where contracts are frequently awarded to the lowest bidder, companies that offer comprehensive benefits may price themselves out of contracts. If competitors aren't providing sick leave, companies that do must either absorb the cost or raise prices—potentially losing business to cheaper alternatives.

The Human Cost

While these economic realities are genuine challenges, the resistance to sick leave creates serious problems. Guards who can't afford to miss work come in sick, potentially spreading illness to colleagues and the sites they protect. This short-term cost savings can lead to larger outbreaks, decreased morale, and higher long-term turnover.

The tension between financial sustainability and worker welfare remains unresolved in many security companies, highlighting the need for either industry-wide standards or regulatory requirements that level the playing field while protecting workers' health.