Miscellaneous DESC

THE SECRET TO DIFFERENTIATING YOUR BUSINESS FROM YOUR COMPETITION

Anne Laguzza, M.A., CEO of The Works Consulting, CALSAGA Network Partner

Play or plan?

How you spend August will set the tone for your business’ future.

Several years ago, I was challenged by a mentor with this very statement. I was skeptical at first. How could a month typically spent by most of the world cramming in last minute vacations impact my business in such a meaningful way? August is in the middle of the third quarter. Not well-known as the month leaders grind on their goals. But, that is the very reason why August is a game-changer.

If you choose to shift up when other business leaders are shifting down, you will gain valuable momentum toward achieving your goals. Especially now when so many leaders are stuck in survival mode, making the choice to strategize and plan for the future instead will set you apart.

Make the most of August by focusing on three essential areas of your business:

  1. Re-evaluate and re-establish core valuesYour core values as a leader guide your actions and inform how you lead your team. When applied appropriately, your values can have a powerful impact and contribute to the greater good of your team, organization and community.

Now is a great time to reassess your core values and gauge whether they’re the correct fit for your team now and into the future. The values you re-establish should raise and set new standards, simplify decision making procedures, and clarify communication and expectations. Values like these will focus your actions and support your team in performing well.

 

  1. Focus on your differentiator

If a potential client asked you what makes your business different from another, would you be able to answer them? Having a strong answer to this question could be the difference between signing on that client or losing the deal.

The key to formulating a strong differentiator or value proposition is identifying your business’ strengths and how those strengths solve your clients’ problems.

What does your team do well?
What positive feedback have your clients given you in the past?
What benefits do your services provide your clients?

When you’re able to connect your value as the solution to a client’s problem and explain why you’re the preferred service provider, you can successfully differentiate your business from the competition.

Beyond leveraging your differentiator in new business meetings, it’s important that you also articulate what makes your company different to your employees. This will help to clearly set expectations of performance as well as instill a sense of identity. Then, lead by example. You as the leader will need to live out this differentiator.

  1. Re-evaluate hiring practices

The employment market has shifted. Now with many people looking for new jobs, you will need to re-evaluate your hiring practices.

Because of this increase in people looking for work, it is easy to let quantity get confused with quality. The reason quantity gets confused with quality is because people often don’t realize that leaders do not let go of their high performers unless they absolutely have to.

Do not let the illusion of plenty cloud the ability to see the few who will be best suited for your company culture. Stay vigilant in looking for the best quality when hiring for a new position. The values a potential hire demonstrates during the interview process must match the values you have spent time and effort instilling in your company’s culture. Do not accept anything less.

Take time now to properly prepare for the hiring process. The clearer you are on what you need from that position and the skills required the easier it will be to identify the ideal candidate in an overwhelming stack of applications.

Now can be an easy time for leaders to relax, to get hypnotized or caught up in the moment. Instead, do what successful leaders are doing right now and stick to your strict hiring process of only accepting the best.

It may be challenging short term, but it will lead to long term wins when you bring quality people in to reinforce your culture.

As the saying goes, if you want something you’ve never had you’ll have to do something you’ve never done. So several years ago, I made a conscious decision. I made August a platform to launch into the fourth quarter with intention and momentum just as I’m recommending that you do. The end result was a fourth quarter like I’ve never experienced before. I exceeded my goals, expanded my team and moved into a new office space.

Now is not the time to settle, now is the time to succeed. And you can absolutely succeed right now. The secret is simply in doing what you’ve never done before. Spend August investing in your business and reap the success of planning instead of playing.

 

Anne Laguzza is the CEO of The Works Consulting. As a seasoned business executive with human resources management, leadership development, and performance coaching experience, Anne works with clients from a variety of industries to develop better systems, maximize employee productivity, and enable management to focus on business growth.

 

Prior to founding The Works Consulting in 2001, Anne served as the Regional Human Resources Director for a Fortune 500 distribution company where she led a merger transition team and was responsible for strategic planning, implementing new policies and procedures, workforce restructuring, compensation structures, and integrating the work cultures for over 600 employees.

 

In addition, Anne was formerly the Human Resources and Training Director for a start-up entertainment company where she organized and implemented a company-wide change management program that involved new company direction and strategic planning. Prior to her work in the entertainment industry, Anne served as the Regional Training Manager for a nationwide retailer where she developed and launched a multi-state training program for human resources managers as part of a corporate expansion project.

 

Anne earned her Master of Arts degree in Organizational Management from Antioch University, and holds a Bachelor of Arts degree in Psychology from the University of California, Riverside. She is an active member of the Society of Human Resources Management, and is the Board Chair for Harbor Interfaith Services and a Board Manager for the YMCA, Los Altos. Anne has taught human resources and management courses at Long Beach City College and California State University, Dominguez Hills, and volunteers at non-profit organizations teaching interviewing skills to adults seeking re-entry into the workforce.

 

Social Media Links:

Instagram – https://www.instagram.com/annelaguzza/

Facebook – https://www.facebook.com/TheWorksHR/

LinkedIn – https://www.linkedin.com/in/annelaguzza/

 

SWITCHING GEARS FROM PLANNING AND PREVENTION TO PIVOTING

Mark Folmer, TrackTik, CALSAGA Network Partner

While the COVID-19 crisis takes an increasingly devastating toll on the most vulnerable in our society, it is also striking the most resilient: our law enforcement officers. In New York City alone, one out of every six police officers is out sick or in quarantine. In early April, there were more than 1,500 individuals, including 2 police chiefs, and the deputy commissioner in charge of counterterrorism, out of 36,000 NYPD officers, infected with the virus. Across the country, police departments in Detroit, Houston, and Los Angeles are facing similar challenges, but none that matches the magnitude experienced by what has become the epicenter of COVID-19.

With private security companies and their teams of security officers being called upon to provide additional security and support to assist law enforcement, the security industry is quickly pivoting from planning and prevention to response. Security guards are now maintaining social distancing and performing other health and safety checks at hospitals, government facilities, and essential businesses. They are also protecting non-essential businesses such as schools, retail stores, and office buildings that have been closed but still require security. Yet despite the fact that these new public-facing roles come with increased exposure and risks to personal and mental health and safety, security officers are still showing up for work every day.

 

CovidCrime is Real
As law enforcement struggles to keep up with the evolving crisis, and individuals are being asked to isolate at home, some criminals are taking advantage of shuttered businesses and deserted streets, leading many law enforcement agencies to urge businesses and commercial property owners to take proactive measures in preventing their properties from being targeted by a wave of what’s been dubbed “CovidCrime.” So, some closed businesses with storefronts have already started to board up their windows. Other suggested measures include increasing lightning, upgrading entrance locks and security systems, or keeping staff on premise during the daytime hours and hiring private security officers for the overnight hours. To reduce the increased financial burden of extra security, some businesses have started to pool resources, or share services with other tenants in the same building or geographic area. Giving security officers clear and up-to-date instructions is more important than ever considering that in many situations, they may be working alone.

 

Threat Risk Assessment

As the crisis evolves, it may be time to review your threat risk assessment (TRA). With “CovidCrime” spreading around the world, security companies need to address potential risks. A good TRA identifies exposure by analyzing security weaknesses and taking action to manage the risk and reduce the impact of any threats. The standard process of a comprehensive TRA consists of asset identification, threat analysis, risk assessment, and risk management.

While many aspects of a traditional TRA still apply, during a pandemic, you may want to consider:

  • Restricting access to and/or monitor entry points
  • Controlling secure areas
  • Reviewing access points
  • Performing random checks for unauthorized access
  • Verifying alarm systems and fire detectors
  • Monitoring entry points via security cameras
  • Implementing measures to prevent unauthorized people from accessing secure areas

To pinpoint what areas or access points need to be monitored and secured, it’s important to rely on accurate historical incident data.

 

Take Advantage of Technology

With the need and deployment of security guard services growing rapidly right now, there’s no better time to take advantage of the available security technology on the market. Look for technologies that enable your security guard firm or in-house security team to simplify operations, drive transparency, and support accountability. The larger a workforce becomes, it is important to streamline scheduling for a large, diverse, and mobile security workforce to reduce the number of human interactions; however it is too complex to do without the proper tools and the likelihood that you have various staff members now working from home.

 

Pivoting Your Business Model

If there was ever a time to take a long, hard look at your business model, it’s now. Have you been thinking about diversifying your small- to medium-sized business? Expanding your reach from high-end retail guarding to providing door security at luxury condominiums to guards for gated communities? If the shuttering of high-end retail stores has furloughed your team, what about exploring the myriad of new guard duties presented by the pandemic. With most of the retail industry on pause, guards are now considered essential services outside hospitals, supermarkets, drug stores, hardware stores, and many other locations that were virtually unheard of six weeks ago. Consider the training and equipment needs of these positions to ascertain if your team is capable and equipped to step in and handle any new opportunities that come your way. Chances are, they are.

Right now, there is an increased demand for security guards in sectors like healthcare, grocers, and some hotel properties while there is a decrease in the education, aviation, travel, and hospitality sectors. However, as more businesses start to gradually open up, so will new guarding opportunities. With much talk of a “new normal,” in the early days of opening up the economy, we may likely experience an increased security presence reminiscent of what happened during after the 9/11 terrorist attacks. We may be asked to provide more identification upon entering public buildings, our temperatures may be taken prior to entry, and the number of people allowed to enter may be restricted which is where the security industry will be asked to step up just as the private sector has stepped up.

Fanatics, the company that makes the official uniforms for Major League Baseball, is now using the material it uses to make jerseys to make masks and hospital gowns. The first set of jerseys were made with material originally intended to make jerseys for the Phillies and Yankees.

Image Options, a leading Silicon Valley visual communications company has gone from building installations for trade shows and office environments to producing PPE to help healthcare professionals fighting COVID-19. The company recently unveiled a new checkout shield to help protect cashiers at grocery and retail stores.

Nike has also joined in the effort by making face shields from shoe collar padding, clothing cords, and the soles from Nike Air shoes.

L’Oréal, one of the world’s largest beauty producers, announced in mid-March that it will use its manufacturing facilities to make hand sanitizer and hydroalcoholic gel throughout Europe.

The value of security has never been greater than it is right now, but security companies and the industry in general should be prepared for a marathon not a sprint to the finish line. We should be prepared to adjust our business and delivery models, and be nimble and open to pursuing new lines of business as they present themselves in the coming weeks and months. It’s never too late to expand your service offering and make your security teams available for new and unconventional duties. The security industry is quickly emerging as a business enabler––helping existing businesses get safely and securely back to work––by demonstrating that we continue to be operational and responsive in a time of pandemic.

While it may be tempting to focus on the negative aspects of the crisis we are all currently facing, a more positive approach might be to take this opportunity to step back, take stock, and deliver more.

Do you want to know how the security industry is reacting to Covid-19? Fill out this 5 minute survey and we’ll share the insights with you!”

Mark was named to the prestigious IFSEC Global influencers list in 2018 & 2019 for “Security Thought Leadership”. He is also a highly active international security figure, member of ASIS and a Fellow of the UK Security Institute, as well as a world renown data-driven Operations & Security leadership expert. Mark is based in Montreal, Canada with TrackTiK, a dynamic and cutting edge tech company. Mark is also a lecturer and commentator on global security issues.

 

LEADING AN ESSENTIAL WORKFORCE: TIPS FOR ACTIVELY MANAGING YOUR OFFICERS WHILE SUPPORTING THEM THROUGH CHALLENGING CIRCUMSTANCES

Anne L. Laguzza, M.A., The Works Consulting, CALSAGA Network Partner

While many are staying “safer at home,” your officers have been deemed essential and continue working to uphold the mission to protect property and environment. As a leader, you may be feeling the strain of operating beyond business as usual. Your officers may be feeling apprehensive about their normal posts.

In this challenging time, everyone is impacted both personally and professionally, even leaders. Everything is different. Actively managing your officers is critical to serving your clients but equally as important is supporting your officers as they perform their duties during these unprecedented circumstances.

Follow these five tips to actively manage your officers and support them well:

  1. Communicate Daily

Communication is a critical component of actively managing your officers. When uncertainty is prevalent, regular communication solves issues, often before they arise, and instills confidence in your workforce.

Using technology is key to staying in contact with your officers. Go beyond text messages and have a voice conversation. This extra step is critical to conveying empathy, understanding and taking a moment to value the officer, especially for officers who work solo without seeing anyone in management for weeks or months and can get disconnected quickly.

Your officers are likely to have questions. Have your officer’s duties changed at their post? Are there new health guidelines or safety protocols they must follow? Do they still report to the same person? If they worked with other officers before, will those shifts now be solo?

Communicate any changes in post directions, check in to see how they’re doing and inquire if they have any questions or need additional support.

 

  1. Convey Appreciation

Conveying your appreciation for these “essential” workers who continue to show up day after day while many people they know are staying “safer at home” is another critical component of actively managing your officers while also supporting them. You can do so much to make your officers feel valued and important with very little effort or cost.

When I worked internally in the industry, my job was to turn around morale and reduce employee complaints among the 600 employees. I was able to do both, just by recognizing the “human” in these officers and treating them with respect with every interaction. The president of our company was very good at getting out in the field and communicating with officers and shaking hands. These interactions made our employees feel valued and important.

Although you cannot shake hands with your officers right now due to social distancing, a phone call or other personalized communication to individual officers from the leader of your company to say thank you for continuing to serve during these unprecedented times will go a long way in ensuring your officers feel valued.

 

  1. Set Expectations While Understanding

Although the climate in which your officers are working in is unique, the best way to support them is to still set clear expectations while being understanding.

Your officers still need you to continue managing them, communicating expectations and keeping them accountable but with a general understanding that the unusual circumstances may result in your officers doing things that they have never done before because the situation warrants it.

Be open minded – look at the entire situation – and make decisions that are the best for the employee, the company and the client. Being flexible and expressing that you understand will make your officers feel supported when they need it most.

 

  1. Provide Additional Resources

Everyone processes circumstances differently. Providing additional resources, like an employee assistance program, is an impactful way to support your officers through challenging, extraordinary times.An Employee Assistance Program (EAP) is a voluntary, work-based program that offers free and confidential assessments for mental and emotional well-being, short-term counseling, referrals, and follow-up services to employees who have personal and/or work-related problems.

  1. Take Care of Yourself

As a leader, you may be so focused on supporting your teams through these challenging times that you might not realize that you are under a little more pressure than normal yourself.

It’s important for you as a leader to take actions that support your well-being. Debrief with fellow CALSAGA members. Connect with friends and family. Do something you enjoy in your free time. When you prioritize your well-being, you’ll be able to lead your teams well.

Taking time to actively manage your officers while thoughtfully supporting them during these challenging times will ensure that you and your officers serve your clients well now and come out stronger when this is all over.

Thank you for all you and your officers do for our communities!

Anne Laguzza is the President of The Works Consulting. As a seasoned business executive with human resources management, leadership development, and performance coaching experience, Anne works with clients from a variety of industries to develop better systems, maximize employee productivity, and enable management to focus on business growth.

Prior to founding The Works Consulting in 2001, Anne served as the Regional Human Resources Director for a Fortune 500 distribution company where she led a merger transition team and was responsible for strategic planning, implementing new policies and procedures, workforce restructuring, compensation structures, and integrating the work cultures for over 600 employees.

In addition, Anne was formerly the Human Resources and Training Director for a start-up entertainment company where she organized and implemented a company-wide change management program that involved new company direction and strategic planning. Prior to her work in the entertainment industry, Anne served as the Regional Training Manager for a nationwide retailer where she developed and launched a multi-state training program for human resources managers as part of a corporate expansion project.

Anne earned her Master of Arts degree in Organizational Management from Antioch University, and holds a Bachelor of Arts degree in Psychology from the University of California, Riverside. She is an active member of the Society of Human Resources Management, and is a board member for Harbor Interfaith Services and an advisory board member for Arthritis National Research Foundation. Anne has taught human resources and management courses at Long Beach City College and California State University, Dominguez Hills, and volunteers at non-profit organizations teaching interviewing skills to adults seeking re-entry into the workforce.

THE IMPORTANCE OF INCREASING COMMUNITY SECURITY

Mark Folmer, TrackTik, CALSAGA Network Partner

In the aftermath of a string of attacks targeting various communities around the United States, many state officials are calling for more protection. In New York state, for example, the governor has announced increased patrols by the state police in communities to counter what he calls “domestic terrorism.” Several state lawmakers across the United States have also asked the National Guard to visibly patrol and protect communities.

In Long Beach, California police will increase visibility and perform additional patrols and have asked the public to alert police if they see anything suspicious. Los Angeles officials have also modified how they respond to world conflicts and terrorist acts as tactics change. Post-9/11, authorities focused on protecting large-scale targets like high-rises, famous landmarks, and airports. They are now looking more at “soft targets” after several attacks targeting crowds of people celebrating in their communities and pedestrians have occurred. Security is also being beefed up at the Los Angeles port and LAX.

Community Involvement

But it’s not just physical security that officials are changing. Some communities are creating neighbourhood safety coalitions, or neighborhood watch programs, which will allow communities to work together to catch signs of crime and violence and report them before anything happens.

“If you see something, say something™?” which became the unofficial slogan of post-9/11 America, is a national campaign that raises public awareness of the indicators of terrorism and terrorism-related crime, as well as the importance of reporting suspicious activity to state and local law enforcement. In the wake of the recent communal attacks, public awareness matters now more than ever.

A few ways you can help keep your community safe: pay attention to your surroundings, get to know the neighbors, use timers on lights inside your home, install motion-sensors on lights outside your home, and never post your vacation dates on social media. As you spend time in and around the community, if you see something that doesn’t seem quite right, say something. By being alert and reporting suspicious activity to your local law enforcement or security officials, you can protect your family, your neighbors, and your community.

Public safety and security is everyone’s responsibility though. If you see suspicious activity, report it to local law enforcement or a person of authority:

  • Who did you see?
  • What did you see?
  • When did you see it?
  • Where did it occur?
  • Why is it suspicious?

The Role of Security Companies

Security companies can also play an integral role in keeping your community and property secure and safe. Many security companies, often working in collaboration with local police, offer home protection programs designed to deter and respond to criminal activity, safeguard homes and properties, and encourage residents to collectively protect their communities.

When hiring a security company, here are a few qualities that you should look for:

Reputable Industry Provider

It’s important to find a reputable and trustworthy service, regardless of the size of the company. Look for a security company that provides excellent customer service, has a solid reputation with positive reviews, and values client feedback. A quick Google search could reveal a company’s reputation through Linkedin and Facebook reviews.

Trained and Certified Guards

Ask your prospective security company about the qualifications of their staff. It’s important that the security company provides guards that are well-trained and vigilant. Extensive training and discipline can set a top security guard apart from the rest. Be sure to check for certificates and licenses to know how much training the security guard has. If the guards are authorized to carry firearms, additional qualifications and carry permits may be required. Trained security guards know how to respond to crime and how to address any criminal activity like theft or vandalism.

Innovative Technology

Is the company up-to-date with the latest innovations in security technology? Most security companies promise that their guards are always on-time, stay alert, and respond appropriately when an incident occurs. But that promise should be backed up by what should be standard in the security industry–a security solution that verifies check-in/check-out, documents patrols and duties, . You should make sure the company has the ability to track guard activity with GPS tracking which provides a dynamic, real-time map of the location of guards at all times.

Summary

With police departments under increasing pressure to protect communities, despite reduced budgets and staff, many security organizations believe that the future of community security lies in improved public-private partnerships. Right now, police departments around the country spend more time dealing with noise complaints and rescuing cats from trees than solving crimes and enforcing law. So it just makes good sense to use private security officers to support state, county, and municipal policies agencies where they can make an impact on the safety and security of our communities.

Securing our communities shouldn’t be the sole responsibility of any one organization though. It should be a partnership between the citizens of the community working together with police agencies and security companies. Protecting our communities is not just about preventing crime. It’s also for the well-being of all the families in the community thanks to private security’s contribution to safety.

 

Mark was named to the prestigious IFSEC Global influencers list in 2018 & 2019 for “Security Thought Leadership”. He is also a highly active international security figure, member of ASIS and a Fellow of the UK Security Institute, as well as a world renown data-driven Operations & Security leadership expert. Mark is based in Montreal, Canada with TrackTiK, a dynamic and cutting edge tech company. Mark is also a lecturer and commentator on global security issues.

THE BUDDING CANNABIS SECURITY INDUSTRY: A BEGINNER’S RESOURCE GUIDE

Chris Anderson, Silvertrac Software

Over the past decade, states all over the country have been slowly legalizing both medical and recreational cannabis use. However, industry regulations continue to be confusing, especially since each state manages its own cannabis regulations.

In order to better understand where the cannabis industry is going and what it means for your security operation, let’s start with some general knowledge of where exactly the country sits on the topic.

Cannabis regulation is almost exclusively managed at the state level. At the federal level, cannabis is categorized as a Schedule 1 substance, grouped with drugs like heroin and methamphetamine. This creates obvious hesitation and concern for entering the industry.

Our goal here is to help shed some light on how you can get in on this $12+ billion industry (estimated to shoot up to $66+ billion by 2025) legally – if you decide it’s the right move for your business. Given the nature of the industry, there will continue to be an increasing need for security, and some of these bids are worth some good money!

It should be noted, Silvertrac does not take a political or ethical stance on the cannabis industry or use. We are just here to provide facts and information relevant to the physical security industry, should you choose to go after cannabis bids.

Where is it Legal

As of January 2020, 33 states have legalized medical cannabis use and 11 states (along with Washington DC) have legalized both medical and recreational cannabis use. Most notable are California, Colorado, Oregon, and Washington, the first four states to legalize recreational use in the country.

To see a visual of cannabis legalization in the US, check out this map created by the National Cannabis Industry Association (NCIA).

In addition to the current legalized states, it is anticipated that another 6 states will likely vote to legalize recreational use in 2020.

Security Regulations

Because cannabis is regulated at the state level, it can be tricky to know exactly what regulations vendors have to abide by.

Silvertrac’s advice for anyone questioning what regulations apply to their business, regardless of what verticals they operate in, is to always assume the most strict regulations are the ones that you should follow.

In most instances, when dealing with security regulations, California’s laws and regulations are a great place to start. They are more often than not the leader in security standards. If you default to California, by the time your state comes around to upgrading their standards, you will likely already be compliant.

Here are a few resources on California standards to get you started:

 

Video Surveillance Requirements

While there are a few different video surveillance requirements between states, the one standard requirement for all legalized states is that there must be 24/7 video surveillance for all entrances and exits at any dispensary.

Other common video surveillance requirements include:

  • Minimum camera resolution
  • Minimum frames per second
  • Back-up systems & failure detection
  • Areas surveilled
  • Monitoring accessibility
  • Video retention times (45/90/120 days)

For more information on these different areas of video surveillance requirements, these 3 articles are a great place to start:

For premises specific regulations, see section 500 of the BCC Text of Regulations.

Other things to keep in mind when researching video surveillance for cannabis security are:

Cannabis Security Trends & Best Practices

Any time you’re trying to break into a new vertical, it’s important to keep up on best practices and trends. We have compiled just a few for you here, but you can always check-out Silvertrac Extra for updated security best practices in a number of verticals, including cannabis security.

 

Now that you have a foundation for entering the cannabis industry, it begs the question, is your guard management software ready to take on the challenge? Silvertrac sure is! Request a demo today to see how you can simplify your security operation to take on new opportunities.

WHAT’S THE DIFFERENCE BETWEEN AN ATS AND A JOB BOARD?

Jeff Davis, Kwantek, CALSAGA Network Partner

As we enter a new decade, it’s fun to reflect on how hiring has changed over the past 10 years.

The job board landscape continues to ebb and flow. Dominant players from the early 2000’s, like Craigslist and Monster, have faded to the background, while new business models and social platforms continue to drive more applicants (is the term ‘freemium’ antiquated yet?).

Nothing has spurred change more than record low unemployment rates.

High-turnover industries have adopted digital marketing strategies to lure candidates and manage a pipeline. In these industries, the hiring process resembles a funnel. As competition for workers increases, high-turnover companies are rightly tempted to do everything they can to fill the top of that funnel with more applicants.

With dwindling margins and limited recruiting budgets, it’s tempting to look at spending all your budget on one job board simply for volume.

But the top of the funnel is only one stage to improve, and there are many ways to accomplish that goal. While job boards have added functionality over the past few years, they still don’t have the firepower needed for all recruiting organizations.

Before you make such a move, ask yourself these key questions:

Can the job board manage my hiring process? Job boards are designed to find applicants. Applicant Tracking Systems (ATS) are designed to move those applicants through your hiring process. A ‘one size fits all’ workflow may not be best for your organization if you have high hiring volume.

How will the applicant data flow into our other systems? Will the applicant information flow into your background check vendor and onboarding paperwork? What about your ERP or payroll?

Redundant data entry is frustrating and expensive, and let’s face it – no one wants to run afoul of state and federal requirements. EEO, I-9’s, the new W4, and constantly changing state requirements should all factor into your hiring workflow. If you’re only using a job board, be sure to have a separate system in place to gather critical employee paperwork to maintain compliance. 

Am I getting all the information I need to make the right hire? The ‘easy apply’ trend has been fantastic for job seekers who can apply to multiple jobs in short order, but often employers need more info. Can the job board collect your entire application?

Will a single job board give me the quality applicants I need? Our data shows that different job boards attract different pools of candidates. Have you reviewed your hiring data to see which job board gives you the best quality candidates?

Like real estate markets, hiring is local and varies market to market.

We find that certain job boards work well in rural markets but fail in big cities. Some industries see fantastic results with ‘guerilla’ style recruiting tactics like fliers.

There is no perfect job board for all industries and markets, just like there is no singular hiring process for all organizations. Make sure you’re partnering with solution providers who diversify your applicant pool while helping you create efficiencies for your organization.

If you’d like to learn more about how to improve your hiring process, we’d love to talk! Click here to talk to us about your situation and see how Kwantek can help, or click here for additional helpful resources.

DO YOUR FINANCIALS PROVE YOUR COMPANY’S WORTH IN A SALE TRANSACTION?

Robert Perry, Robert H. Perry & Associates, Incorporated

There have been several very large manned guarding companies sold to Private Equity Groups (PEG’s) over the past few years at multiples between 9 – 12 times the seller’s earnings before interest, taxes, depreciation and amortization (EBITDA), with nominal adjustments.

But the smaller companies, making up the majority of the roughly 8,000 companies in the US manned guarding market are not valued on the seller’s EBITDA when being sold to one of the seller’s larger competitors – usually the most generous of the buyers in the marketplace. 

The acquisition of these smaller companies are a good source of growth for the larger PEG owned companies; in fact, the investors are demanding a series of acquisitions as a way to add shareholder value.  Collectively, the very few PEG’s that have invested in the contract security industry over the past 10 years have bought over 200 privately held companies; providing the sellers the opportunity to retire and receive a well-earned reward for their many years of hard work.   When these large PEG’s grow through acquisitions of smaller companies, they  pay a multiple of their (the buyer’s) pro forma profit; which is usually much higher than what the seller was making before the acquisition since the buyer, in building the pro forma acquisition model, will consider the elimination of redundant costs of the combined companies after the sale.

The problem for many of these “would-be” sellers is that their companies do not have the financial systems in place to help the buyer in preparing a credible pro forma profit computation and the expenses that can be eliminated through combining the companies.  These owners view the financial system only as a mechanism to file the year end taxes and not as an operating tool and especially not from the viewpoint of proving the real worth of the company when the time comes to sell.

We’re not necessarily talking about the owner needing audited year-end statements – although an audit certainly adds to the credibility of the financials.  We’re talking about the owners having a series of ancillary reports and financials that correctly present the financial position of the company, which requires the proper recording of revenue and expenses.   These financials will go much further than just reporting the net profits of the company; they will prove the real worth of the company by showing the specific elements of revenue and cost; important to the buyer  in evaluating the merits of the acquisition.  Sellers not being properly represented in the process, or trying to sell the company without any representation, usually don’t know how to present the financials; thus will sell the company for much less than it’s really worth.  The company may have a very attractive gross profit, but it’s up to the seller to prove it; and proving it involves a lot more than just handing the buyer billing invoices and payroll registers for a couple of periods.  The proof lies in the underlying financials that will confirm that the profit will remain at a certain sustainable level over time.

This is where we come in ….. our many years of managing transactions for seller/clients have enabled us to know exactly what the buyers are looking for and how to best present the financial information in order for our clients to receive top dollar in a sale transaction.  This is how many of our seller/clients have received very attractive prices for companies that, based on historical financials, have been losing money or have been only marginally profitable.

We’ll guide the seller in presenting a meaningful gross profit line – a very important aspect of proving the worth of the company.

Although the operating expenses of the acquisition targets are scrutinized closely by the buyers, it’s the gross profit line that primarily drives the valuation.  The buyer can improve on the general operating expenses through eliminating redundant costs after the acquisition, but there’s not much the buyer can do to improve on the profit at the customer site level.  It can’t raise billing rates, and it can’t reduce the security officer pay and benefits without jeopardizing the relationship with the customers.

Sellers, in presenting the gross profit, should make sure all direct cost ( and only  the direct cost ) relating to providing service to the customer is included in the gross profit section of the income statement, which will include:  gross billing, all compensation to the site security officers (billable and non-billable), and other relates costs such as – payroll taxes, general and workers compensation insurance, uniforms, equipment furnished at the site, union dues, site supplies, hiring and employee processing expenses.   If there are a lot of “cold start” accounts, the cost for some or all of the roving non-billable supervisors should also be included in the computation of gross profit.

We’ll advise on other financial statement adjustments and reports that are summarized and used to prove the worth of the company and become a part of the presentation to the buyer prospect:

  • Customer Profit Report – This report will show every customer, by site, with the hours worked, gross billing, gross payroll, and any special costs that apply to the customer; such as dedicated site vehicles, special insurance, etc.  A more advanced report will further show the billable and non-billable hours (vacation, holidays, training, etc.) with the associated billing and pay, as well as the overtime premium for both payroll and billings.  Very important note:  this initial information is used to prepare summary “gross profit statistics” only, and is not shown in detail for the presentation to the buyer prospects.
  • Year-end and Interim Statements – Prepared on the accrual basis.  Year-end financials prepared by an outside independent accounting firm adds credibility to the information.  It’s also good to have interim statements, although not as important that the interim statements be prepared by the outside accounting firm.  In order to help the buyer understand the financial picture, the statements should follow these guidelines:
    • Sources of revenue and related costs should be identified to help a buyer verify the profit at the sites level, the statements will also identify the revenue according to source (i.e.; permanent accounts separate from temporary accounts, regular straight-time billing separate from overtime premium billing, and patrol and any other non-guarding service would also be a separate line item).  The labor and other costs for the various sources of revenue will also be separated so the buyer can readily determine the profit by category of service (i.e.; how much it’s making on the permanent work vs. the temporary work, and how much its making on the patrol service, etc.).
    • Proper cut-off of billing and expenses:  A common mistake many companies make is not having a proper cut-off of billing and expenses.  This especially true where a company has several billing periods available for the clients (i.e.; some on weekly, others on semi-monthly or monthly, etc.) that do not match the payroll period.  When this is the case, the company should have a procedure in place to book the revenue that has been performed, but not billed, in order to get the billing in the same period as the recording of the labor for the respective service.
    • Another common mistake is not properly recording advanced billings.  This is more common for patrol customers than for guard customers, but in either case, if the invoice has been prepared and entered in the financial system before the service is actually rendered, the billing should be booked as advanced billings then recognized when the service is actually performed.
    • Expenses below the gross profit line should be detailed since the buyer will be scrutinizing these costs.  The buyer is looking for possible other costs that may be important to running the site, but may have been left out of the site level profit computation.
        • Insurance – insurance expense should be separated to show the amounts for workers compensation, general liability, employee hospitalization and health, etc.
        • Class of Compensation – compensation should be separated to show the amounts for non-billable roving supervisors, executives, clerical personnel, dispatch personnel and any other class of labor.  The more detail, the better it will help the buyer understand what it takes to run the business.
        • Vehicle Cost – to the extent it can be easily identified, vehicle cost should be separated by roving supervisors and executives.

For over 25 years we have successfully completed over 250 sell-side engagements for security companies located in 8 countries and having revenues between $2M – $200M.

The information in this article does not render legal, accounting or tax advice. Neither Robert H. Perry & Associates, Incorporated nor its employee, offer such services, and accordingly assume no liability whatsoever in connection with the use of the information contained herein. If legal, accounting, or tax advice is required, the services of a competent professional should be obtained.

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EARTHQUAKE! ARE YOU PREPARED?

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

When the recent earthquake hit in Ridgecrest, approximately 1 hour northeast of Bakersfield, I was out of town and I was not near my family. When I received message of the quake, the first thing I thought was “Is everyone ok?”. This was a 7.1 earthquake, Northridge was only 6.7 on the Richter Scale.

Then, a few other things came to mind:

  1. Are the dogs freaking out and are they ok?
  2. Does my wife know how to shut-off the gas and water to the house?
  3. How do I reach the rest of my family?
  4. Do I have batteries in the flashlights?
  5. Did I have the contact information on the refrigerator for emergency services and neighbors updated?
  6. Did I show my wife how to open the garage door when the electricity was out?
  7. Do I drive home right now from Colorado? (It would normally take me 14 hours, but I could make it in 10 hours, I only need to stop for gas)

Needless to say, my mind was racing.  Then, I said to myself, “I am sure glad this did not happen during business hours.” We do have an Emergency Action Plan, but we have not trained and executed the plan in over a year. And, if the quake did happen during business hours, I believe all of our team members would follow the direction of our leadership team and our Emergency Action Plan. However, after a few minutes, I believe they would think about the stuff I mentioned above and panic would soon appear and then what would we do?

This brought me back to our article in a prior CALSAGA Newsletter issued over a year ago regarding the implementation of an Emergency Action Plan. (Repetition is the best method for learning) This was after the wildfires and our Ventura office was closed for over a week and we had to execute our Emergency Action Plan, even though it was not updated with the most current technology for communicating to our team members and clients to protect them and their families.

In your role as Security Professionals and First Responders, your family, team members, clients and the public look to us for protection and we must be prepared to respond to critical situations and events. We play a significant role in the safety of others and we can make a difference in their lives, if we are prepared!

I thought it is relevant to provide you with a sample Emergency Action Plan again. If you or your clients do not have an Emergency Action Plan, this will help to guide you in the development and implementation. No plan is the same and should include critical information regarding the site location and contacts.

Please take the time to review and envision how a well-executed plan can make a difference in the lives of others. Click here to download a sample Emergency Action Plan.

Thank you and please do not hesitate to contact me if you have any questions.

 

Shaun Kelly joined Tolman & Wiker Insurance Services in 2005.  He specializes in all lines of property and casualty insurance for industries including contract security firms, agriculture, construction, oil and gas. Shaun received a BS in Business Administration with a major in Finance from California State University in Fresno, California. He is an active member of several industry associations, including the Association CALSAGA, the Kern County Builders Exchange and the Independent Insurance Agents of Kern County. Shaun can be reached at 661-616-4700 or skelly@tolmanandwiker.com.

SECURITY GUARD VS. SECURITY OFFICER

Kwantek, CALSAGA Network Partner

So, you have a position opening up in your contract security firm. Now is the time to post the job in various places using your standard job description and other boilerplate materials you use when hiring.

You know you need systems in place for this, so you arm yourself with tools like an applicant tracking software or detailed hiring spreadsheets.

The question now becomes, what should your job title be?

Security Guard or Security Officer?

Many people in the industry will tell you there is no difference in the two.

Some say an Officer is armed and a Guard is not.

Some say the Officer has greater training and/or responsibility.

As we look at today’s hiring and retention landscape, there are two main reasons you should prefer the term “Security Officer” rather than “Security Guard.”

1) “Security Officer” is Searched More Often on Indeed

Thanks to data made available by Indeed, we are able to know exactly how people are searching for security jobs.

In September of 2018, “Security Officer” was searched 725,027 times.

“Security Guard” was only searched 392,036 times, nearly half that of “Officer.”

If you want your job to be seen, the first logical step is to make the title what people search the most.

But it goes deeper than just what the candidate is searching. While it might help you edge out “Guard” in the search results, Indeed is smart enough to show jobs with both titles.

Making sure you get good placement is one thing, but how many people actually click your job?

In September of 2018, jobs titled “Security Officer” received 3,688,632 clicks.

Jobs titled “Security Guard” received only 975,338 clicks.

Not only does “Officer” get nearly twice as many searches as guard, it gets nearly FOUR TIMES as many clicks.

At Kwantek, we like to let the data speak for itself. This is one of those cases.

2) Appeal to Your Audience

The first rule of copywriting is to appeal to your audience.

Your audience (your current and prospective employees) wants to feel respected and important.

Put simply, “Officer” has an implication of greater responsibility than “Guard.”

Implications aside, perhaps you actually believe there to be a fundamental difference between  the two titles.

Here’s the reality…

A good guard, officer, or watchman is alert and observant.

They are ready and able to defuse a situation with words rather than weapons.

They are helpful to others and they follow rules of the management and client.

All of these responsibilities are those of an officer, and labeling them as such works to enhance their sense of self-worth and pride in their job.

When making this decision, we ask ourselves: what’s the goal?

Is the goal to be “right” in a semantics discussion?

Or is our goal to attract the best and most talent and keep them employed on our teams?

At Kwantek, we much prefer the latter, therefore “Security Officer” is the title we recommend.

If you insist on there being a difference between the two, consider using “Senior Security Officer” and “Security Officer” job titles. The difference could mean greater retention and/or more applicants.

Is your job posting built to maximize applicant volume? Kwantek has processed over 1,000,000 security guard applicants in the last year, providing expertise in what definitively helps increase applicant volume. Click here to get a free evaluation of your job postings by one of our representatives.

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TAKING A LONG TERM VIEW

Mark Folmer, TrackTik

The security sector is growing – nobody can argue that. With estimates pushing the 290 Billion USD mark by 2025, it is difficult to argue that opportunities do not exist. With frontline security guarding/services estimated at more than two-thirds of that figure, the question that security business owners should be reflecting on is: how do I position myself to take advantage of that market, that growth, in short, that opportunity.

The reality is that today much of the market is being served by business focused on supplying guards to fill a schedule. There is an opportunity for businesses to get beyond HPW – hours per week. Security shifting in the direction whereby guards are deployed in advanced security markets and are performing more higher value-added security measures. Not only having guards show up as a schedule requires, but also bringing with them measurable data.

Security service companies are not solely to blame for this restricted view of their potential. Clients contribute to the issue as well. Consider where “lowest technically acceptable bid” (LTAB) reign, often under the guidance of strict purchasing rules. It is very obvious that this encourages doing as little as possible as opposed to exploring potential. In markets where qualified staff are hard to source, this pressure is exponential when security officers are being viewed as a commodity, with price being the key factor distinguishing providers. This becomes a problem that spirals out of control and spills over into other areas such as not developing talent, retaining qualified officers.

Solutions can be found in getting clients to understand that there is a need to have a strategic understanding of security. Forward thinking companies understand that security has to bring value to their organisation. For instance, Microsoft has Global Security Strategy and Diplomacy Team focused on driving strategic change to advance security and resilience in a way that addresses challenges such as risk management, incident response, emergency comms & information sharing.

The transition from the bad of today to the potential of tomorrow happens when businesses truly grasp the understanding that they are offering a “peace of mind” service to their clients. In other words: if something happens we are there and we can respond, escalate and manage a situation.

For an interesting down the road view of the future of security services consider the idea of return on data (ROD). The data in question is the information that security teams can generate and act upon to provide for secure environments.

Security companies need to develop a data strategy if they wish to run intelligently. This is evidenced by the Microsoft Accenture survey which revealed that 83% of the top investments that security leaders are looking to make within the next 3-5 years are on big data and analytics.

What are the benefits they are looking to gain? A recent survey by Brivo revealed that among the top-2 benefits are ways to improve policies and procedures at 62%, investigate suspicious behaviour at 37% and seeking compliance support at 27%. The challenge in this area remains companies using decentralised security platforms (which limit efficiency and scalability).

Delivering more is the goal. The idea of using technology that drives an impact (not just tech for tech’s sake) is key. This entails using technology that solves everyday issues: i.e. that gets the right staff to a client’s site, runs operations smoothly while being fully equipped to drive value to the client organisation (and in turn drive your client retention numbers!).

Consider the pain-point of the lack of understanding of current solutions in the market. The aforementioned Microsoft Accenture report revealed that more than half of the respondents believe that there is both clear ROI and non-financial benefits to the digital transformation. Digitization and automation can improve operational efficiency up to 30-50% (contingent on rollout and organisation size).

In a study that TrackTik did in 2016, it was concluded that 93% of end-user clients want their service providers to provide concrete statistics relating to completion of Service Level Agreements (SLAs). This will support retention and will also support differentiation and the professionalisation of your security services.

There is some low hanging fruit in the quest for digital transformation as a clear way to improve efficiencies. Current security business models will probably become obsolete within the next couple of years. This means that adopting technology and varying service models is a matter of survival at this point with 35% of C-level executives indicating that it is important and urgent in security.

We see industry leaders growing- whether that be by acquisition or by organic growth or a mixture of both. The certainty is that those poised for long-term success are doing so by embracing technology and the opportunities presented by digitisation. They are able to offer the peace of mind that their clients are asking for.

Transforming Physical Security – 3 Trends