What should you know before selecting or contracting a security company?

stop2 When you are researching and selecting a security company to provide your security services it is important to recognize that all security companies are not created equally. Some security companies cut corners to give you a low per hour price bid. In many cases this price cutting is on the backs of their employees through low wages, no holiday or vacation pay or cost prohibitive benefits. Service quality suffers from high turnover due to a company not being able to attract and retain quality employees because they pay low wages and offer poor benefits. Another cost cutting area that can actually increase your liability is if they have cut overhead costs by lowering insurance coverage limits or reduced or eliminated training and just put a “body at a post.”

Some questions you should ask:

Does the company specialize in the services you need in a niche market, such as upscale gated communities, upscale businesses and resorts? Or, is the company a generalist just after volume billable hours?
Does the company provide uniforms at no cost to the employee? Or, does the company require the employee to purchase uniforms from them. Professional security companies should provide uniforms without charging their employees. This allows the security employees to become a positive partner who wants to provide a higher quality of service to the customer. Providing uniforms at no cost to the employee is a way to make the security employee feel appreciated and part of the team.
Does the company provide a complete and affordable benefits package to their employees, including health care? Or, does the company claim they do but the employee cost is so high that it is cost prohibitive for the employee to afford health care and other benefits?
Does the company provide multi-million dollars of commercial general liability, automobile and worker’s compensation insurance? Did you know that a security company can be licensed to provide security in the State of Florida by only showing proof of $300,000.00 in liability insurance?
Are the security officers bonded to cover theft? Hint: Most companies don’t bond their security officers.
Does the security company provide insurance coverage if a security officer loses a grand master or other key and you have to re-key an entire building?
Does the security company carry employment practices liability insurance? And, does it cover inappropriate actions or comments of a harassing nature to a third party?
If the security company provides a vehicle is it fully equipped to include first aid, AED, battery boost and tire inflator capabilities, snake and critter catcher, traffic safety equipment, radar, vehicle door lockout kit, real time GPS and security roof lights equipped with spotlights, alley lights and flood light? Does the car have a flashlight and camera?
Does the security company use a patrol verification system for their foot and vehicle patrols?
Does the security company provide on-line access to reports and email notifications of emergencies or critical incidents?

The old adage “you get what you pay for” is firmly entrenched in the security industry. So be careful and be sure to ask the tough questions and select the company that is right for you and will protect your interests and not just collect a check.

Outsourcing Your In-house Security

Is outsourcing your existing in-house and employee security team right for you? It is if you want to:

Reduce security program costs
Retain control and accountability
Retain staffing and assignment flexibility
Have the ability to quickly adapt to changing needs
Eliminate scheduling problems
Reduce risk and liability exposure
Lower training costs
Reduce uniform and equipment costs
Eliminate overtime caused by employee call-offs

What is the true cost of your current in-house security team? Questions you should ask and numbers you should count.

Wage costs – base wage, holiday pay, vacation pay, sick pay, incentive pay, COLA/merit pay, longevity pay, shift differential pay, overtime, FICA/Medicare match, federal and state unemployment taxes, overtime, lost productive time and wage costs due to military duty, jury duty, on the job injuries.
Benefits costs – health, dental, vision, life, short and long term disability, 401(k) contribution
Human Resources cost – recruiting, advertising, background, interviewing, termination costs, HR staff
Insurance costs – general liability, workers’ compensation
Training costs – initial training, on-the-job post training, supervisor, management and continual in-service training
Uniforms – shirts, pants, badges, jackets, sweaters, shoes, belts, name badges
Miscellaneous – incident reporting software, computers, patrol verification systems, real-time GPS, cell phones, AED’s, first aid supplies, flashlights, security logs, guest/access passes, office supplies.

Total this up and you should have the real cost of your in-house employee security program. Then compare your current cost with a proposal from a professional and qualified contract security company. Watch out for low bidders in your comparison. See above for what to look out for.