Rapidly increasing threats, both in person and online, are driving a demand for business security systems, according to the latest report by Markets and Markets. The global security solutions market, valued at $206.69 billion in 2016, will expand at a compound annual growth rate of 10.16 percent to reach $372.90 billion by 2022, the report projects. Commercial solutions hold the largest share of this market, with companies investing significant amounts in order to secure their facilities and workers from physical and cyber threats. Fortunately, security systems are investments that generate benefits which cover their own costs. Here are five ways that security systems pay for themselves.
First and foremost, security systems pay for themselves by protecting businesses from property damage and losses incurred by burglary. Over eight percent of small businesses suffered burglary or theft in 2016, a survey of 1,000 small business owners by Insureon found. The average loss per incident was $8,000. Those numbers mean that over the course of 11 years, your business has a virtual certainty of losing $8,000 to theft unless you take preventive measures. Installing video surveillance cameras can help protect you from this risk, effectively serving as an insurance policy. When would-be burglars see that you have security cameras that can identify them, they are more likely to move on to an easier target.
Reducing Inventory Shrinkage
Security systems can also help prevent loss incurred due to inventory theft by shoplifters and employees. Inventory shrinkage cost U.S. retailers $45.2 billion in 2015, growing $1.2 billion from the previous year to equal 1.38 percent of sales, according to the National Retail Federation. Nearly half of retailers experienced increase of loss from shrinkage, suffering an average loss of $377 per incident, up $60 from the previous year. By helping reduce or eliminate this unnecessary loss, security systems help employers retain more of the revenue they generate from sales and maintain a higher profit margin.
Another way security systems pay for themselves is by promoting worker productivity. One in five employers estimate that workers are productive less than 5 hours per day, with cell phones, texting, internet surfing and social media ranking among the top suspects for non-productive activity, a CareerBuilder survey found. Security systems can help discourage non-productive activity by enabling you to monitor employee attendance and work habits and enforce workplace policies. Recognizing this, 68 percent of employers are now seeing security cameras as a means of improving operational efficiency, with 44 percent of these citing managing productivity as an intended application, according to an Eagle Eye Networks report.
Preventing Workplace Injuries
Thirty percent of employers using security systems for operational purposes are also using them to prevent workplace injuries, Eagle Eye Networks also found. Workplace injury compensation costs can be crippling, costing employers $1 billion a week, according to OSHA. The average cost of an employee fracture can include $50,000 in direct expenses and another $55,000 in indirect expenses. Security systems can help you avoid these enormous expenses by ensuring that workplace safety regulations are followed. Security footage can also document your compliance with safety regulations should you ever need to defend yourself against a claim in court.
Generating Marketing and Sales Data
Security cameras can help you analyze customer behavior and patterns by collecting information about which aisles customers spend the most time in, which products they handle and what patterns they use to navigate through stores. This can help you make decisions about where to place products for optimal sales promotion. Accenture research has found that stores can achieve a 5 percent increase in sales through strategic use of security cameras in conjunction with analytics tools to study customer behavior.