Overtime share of hours

Definition

How much of the guard payroll is billed at premium rates because posts are short.

Why It Matters

A guard company that cannot fill its schedule runs its existing people into overtime, which is paid at a premium and usually billed at the contract rate, so every hour of it comes straight out of margin. It is also the clearest sign of a recruiting problem before turnover shows up in the numbers. Ask for overtime as a share of total hours by contract: the contracts carrying it are the ones a new owner inherits a hiring problem on.