Bill-pay spread

Definition

What a guard hour bills at, minus what the guard fully costs once every burden is counted.

Why It Matters

The spread is the entire margin and it is often in single digits, which means a wage increase the company cannot pass through erases the profit rather than trimming it. Ask when bill rates last moved and what the contracts say about adjusting them, because a multi-year contract at a fixed rate in a rising wage market is a loss with a schedule. Overtime and turnover both sit inside this number too.