Full Regulatory Impact Assessment for Manned Guards & Keyholders

• Management costs• Communication with customers• Contract renegotiation• Replacement staff• Staff briefings• Record maintenance• Insurance implications, etc.• Union negotiationsOwing to the number of variables in quantifying these costs, the calculations below have not includedsuch an element and have instead concentrated on the one off costs of licensing all staff in time for thecommencement of regulation. The greater degree of confidence within the industry and savings thatcompanies may receive (i.e. insurance costs) would be offset against the costs above and thereforeoutweigh the investment companies may face.Although the SIA licence is the property of the individual, it is envisaged that a number of companieswill either pay for or subsidise their employees’ licence and training costs as part of improvingemployment conditions, and encouraging staff retention and development. (Therefore, the costs aboveare the maximum direct costs a company may face.) It is also understood that some companies areconsidering retention clauses when paying these costs to retain the financial benefit of the investmentin their staff.This appendix looks at the basic cost model for a typical business in the security guarding sector.Please note that although the factors taken into consideration are likely to be similar for CVIT, CP andCCTV sectors, wage levels do vary across the sectors. Wages levels are likely to be similar in thekeyholding sector and higher in CVIT and close protection sectors.40