Kate

The Californian 2023 Q2: Top 3 Areas to Improve Your Hiring Funnel

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Top 3 Areas to Improve Your Hiring Funnel

Maddie Anders, TEAM Software by WorkWave, CALSAGA Network Partner

Consider the two different versions of the labor market.

First, there’s a candidate-driven market, where applicants have more power in determining where and what conditions they’ll accept working amongst. There are often more attempts at negotiations, especially with wages and benefits, and it can be harder to position yourself as an employer of choice as many markets are competing for the same pool of workers.

Second, there’s an employer’s market, where there is less flexibility for negotiations from the stance of an employer because the rate of unemployed persons per job opening is high.

Although economic factors may suggest the labor market is changing, the fact is we’re still operating in a candidate-driven market. To position yourself as an employer of choice and attract more quality candidates to your open roles, you have to do what you can to improve efficiency, enhance the customer experience and deliver measurable KPIs to your company’s bottom line.

Improved efficiency

In today’s highly competitive job market, organizations need to ensure that they have a streamlined recruitment process that can attract, hire and onboard top talent efficiently.

But what does efficiency really look like? In your hiring funnel, it should mean you’re able to get the right people in the right jobs at the right time and for the least amount of resources.

The first step in achieving this is to integrate applicant tracking, hiring and onboarding systems. With an integrated system, recruiters and hiring managers can manage the entire hiring funnel from a single platform. This includes posting job openings, reviewing resumes, scheduling interviews, checking references and onboarding new hires. It means removing paper-based documentation and filing systems for compliant and secure data storage and sharing. And, it means doing it all in a way that is repeatable.

Despite hiring significantly more than the national average, the net sum of workers in the security industry isn’t substantially increasing due to the amount of turnover. In proprietary data from TEAM Software by WorkWave and included in our recent data report, we’ve found that a security company must hire approximately 108 applicants a year, just to maintain an average

annual headcount of 100 employees. Knowing the demand for security guards is and will remain high, it’s critical to establish proven integrated recruitment processes that can be easily replicated again and again.

Enhanced candidate experience

Another key benefit of integrated recruitment systems is the enhanced candidate experience.

An integrated recruiting system can provide a seamless experience that enhances the employer brand and helps attract top talent. For example, you can streamline your recruitment requirements to only request critical criteria in the application process, instead of requiring page-long resumes and applications – and still capture the necessary information you need to begin screening. Even better, offer text-to-apply application formats, which reduce the barriers of application completion for prospective candidates in your industry. When a candidate applies for a job, they can receive automated responses acknowledging receipt of their application, including via text.

During the interview process, recruiters can use the system to schedule interviews, send reminders and follow up with candidates quickly. Once hired, you can collect necessary new-hire and onboarding documentation with easy digital methods, instead of sending supervisors to chase down employees at job sites.

Data-driven KPIs

Arguably the best benefit of an integrated recruiting system is the measurable results it contributes to your bottom line. TEAM Software’s own applicant tracking, hiring and onboarding system, for example, enables users to hire an average 42% faster than the national average. That equals 15 days of time savings gained back during the hiring process alone. This is a critical metric to consider when knowing that contract coverage depends on available employees to cover shifts.

It’s also important to look at your back-end processes and see where efficiencies can be gained. Ask yourself these questions: How much effort is going into tracking applications, reviewing work history and resumes, screening candidates, running background checks and moving new hires into onboarding? Of that time being spent, where could your back-office team’s efforts be redirected to contribute even more to the company’s bottom line? Could you be hiring even more applicants?

With TEAM Software’s ATS, hiring and onboarding software, clients report 60% savings of time spent on hiring activities.

Learn more about measurable results service contractors are achieving in their hiring process at teamsoftware.com.

Maddie started her career in the global banking industry as an Applications Programmer prior to joining TEAM Software by WorkWave. After working as a Quality Analyst, Maddie transitioned to Product Owner, where she combines her passion for problem solving with the guidance of product strategy to bring forward enhancements that add value to users while driving future innovations.

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Kate

The Californian 2023 Q2: Nationwide Communication is Trending with Law Enforcement, Security & Specialized Units

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Nationwide Communication is Trending with Law Enforcement, Security & Specialized Units

We live in a data-driven world where agencies and private security increasingly expect data to flood through theirnetworks at optimum speeds to do their jobs better, smarter, and faster. Today, 75% of the workplace is said to be themillennial generation (1), and many believe that millennial workers are addicted to the “instant gratification”phenomenon. This is a generation that grew up with texting, instant messaging, social media, and more, all at theirservice to deliver information in an instant. As the speed of our data-driven world continues to increase, so are theexpectations of workers whose jobs rely on instant data-driven communications.

While the idea of instant push-to-talk communications has been around since 1933 when a New Jersey police department operated the first Land Mobile Radio (LMR) system, this new data-hungry workforce continues to push thereliability and speed of their communication system. But the need for speed simply isn’t enough in an increasingly mobile world …

According to a recent Gallup study, 43% of employees reported working offsite at least at some point during theircareers compared to 30% just 4 years earlier (2). With this increasingly mobile workforce that can now work anywherebeyond the office, an instant communication solution to support these requirements is simply non- negotiable. In aMotorola Solutions Communications Survey, 64% of workers stated it is important to have instant, nationwidecommunication at their workplace (3).

Today you can get the best of both worlds with instant two-way radio communication features at a nationwide scale.By connecting existing Land Mobile Radio (LMR) systems and smartphones, the LTE Broadband radio, extendspush-to-talk benefits for all team members, whether they’re on the same job site or across the country.

PRIVATE SECURITY:

INSTANT COMMUNICATION WHEN IT’S NEEDED MOST

Security personnel can use one device anywhere.

  • Communicate critical encrypted communication instantly with team members across the country at the push of a button.
  • Bridge multiple facilities and operations without needing to set up or maintain complicated infrastructure.
  • Connect with teams regardless of their network, on existing LMR devices to smartphones, and more.
  • Fast-track security operations with a nationwide push-to-talk network that powers the quickest setup, programchanges, and connectivity.
  • Even the freshest new hire can pick up the device and immediately share information with the rest of the team.

Perhaps no industry requires instant communication more than security, where safety often depends on split second decisions.

  1. Key Statistics About Millennials in the Workplace, Mark Emmons
  2. America’s Coming Workplace: Home Alone, Annamarie Mann, and Amy Adkins
  3. 2019 Motorola Solutions Communications

JoJo Tran is Chief Executive Officer of Telepath Corporation. Tran joined Telepath in 1990 and became CEO in September 2010. Previously, he headed several business units at Telepath, including mission critical infrastructure, customer service, sales and mobile team. Mr. Tran’s vision is to be the industry’s premier sales, service and program management company. Customers and partners will see Telepath as an integral to their success. Telepath will anticipate their needs and deliver on every commitment. People will be proud to work at Telepath. Telepath will create opportunities to achieve the extraordinary and will reward their success.

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Kate

The Californian 2023 Q2: Balancing Ops and Back-Office Resources for Profitable Growth

Balancing Ops and Back-Office Resources for Profitable Growth

Lindsay Uleman, TEAM Software, CALSAGA Network Partner

The security industry is one of the most critical, essential and rapidly evolving sectors in the world. With a market size already over $54 billion and expected growth in the years to come, security companies should be positioning their businesses to best win new business and scale services to match growth projections.

To do this, you must first have a clear understanding of potential roadblocks in your management of field operations and the correlating resources built into your back office. Once you overcome these barriers, you can move towards more nuanced elements of winning more business and scaling revenue-driven business growth.

Managing your field officers – better
The fact of the matter is that a growing business needs technologies and processes to keep pace with their growth. That means having a system that can accurately:
? Record and track timekeeping including nuanced needs like meal and rest breaks
? Ensure the right officer is assigned to the right contract based on compliance needs and qualifications
? Keep up with scheduling changes, including no-shows, tardiness and supervisors standing post
? Provide a system for clear incident management and resolution
? Improve proof of service tracking and reporting on work being completed in the field

The truth is, many security companies are still trying to achieve these standards using spreadsheets or hard-copy documentation. Others may have implemented a specific software solution for each bullet point, resulting in manual data manipulation and inaccurate data reference points.

The technologies you use to support your business can just as easily stall growth than support it. What may have worked for your business in the past might not be scalable as you’re taking on more contracts (and hiring more employees to execute on them).

Take the time to make sure you have the right framework in place to support your growing workforce with effective timekeeping, scheduling, service delivery and reporting processes. Doing so now will reduce rework – or needing to start from scratch – years down the road when your clients may walk away from you because of it.

Building an effective back office at scale
As many security companies secure bids and hire officers to meet those specific SLAs, many are finding themselves having to commensurately increase the resources they’re putting into their back office to keep pace.

That’s not sustainable. If you’re constantly increasing your operations and back-office at a 1:1 growth rate, the revenue gained from new contracts will constantly be allocated to cover your growing overhead. Essentially, that just means everyone is doing more work without much to show for it.

Instead, invest in solutions that reduce the amount of time your back-office teams are spending on manual tasks related to payroll, HR, accounting and reconciliation. It’s even better if your solution can take the data that’s already been collected from the field – especially time keeping records – and funnel that downstream to inform client invoicing and issuing accurate payroll.

When looking for a system that can do these things, keep an eye out for:
? Automated workflows
? Shared data
? Inform employee and customer self service portals
? Support integrated accounting
? Reduce liability
? Support compliance
? Cut back on manual work

There will always be a need for back-office management and support. But when given the right tools, your existing teams should be able to complete more work at scale no matter your company’s growth rate.

Achieving a balanced ratio
With the growing market, there’s no reason you can’t scoop up available market share in the years to come – as long as you have the right systems in place.

Enterprise software solutions can help in balancing the needs of both your field-based officers and your back office. With appropriate resource allocation, you can maintain a growth trajectory that is profitable and scalable no matter what lies ahead.

Learn more about striking the right balance with your team. Watch this video case study on achieving scalable growth without growing support staff at teamsoftware.com.

With TEAM Software by WorkWave since 2018, Lindsay assists customers improve processes to achieve strategic goals by engaging, collaborating and supporting streamlining efforts. Prior to TEAM Software, Lindsay earned a Bachelor’s degree in Business Administration, Marketing and Management along with several years of professional experience including various client engagement and administration roles.

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Kate

The Californian 2023 Q2: Confidentiality of Settlement Agreements Obliterated by the NLRB

Confidentiality of Settlement Agreements Obliterated by the NLRB

For decades, employers have comfortably included confidentiality provisions in settlement and severance agreements. This allowed employers to keep the terms of the agreement and the sum paid to a former employee confidential. Employers were even allowed to require the employee to keep information regarding their employment with the Company confidential. Recently, however, this has begun to change. 

Effective January 1, 2022, Senate Bill 331 placed significant restrictions on confidentiality and non-disparagement provisions in settlement agreements related to sexual harassment and assault cases. More recently, the National Labor Relations Board (“NLRB”) imposed further restrictions on confidentiality provisions in severance and settlement agreements. In short, the NLRB opined in McLaren Macomb  (07-CA-263041; 372 NLRB No. 58) that if a confidentiality provision is too overboard, it restricts the employee from exercising their rights under Section 8(a)(1) of the National Labor Relations Act. Surprise: that’s most confidentiality provisions!

McLaren Macomb, a teaching hospital was forced to lay-off a portion of its staff during COVID-19. The staff were offered a severance agreement that included both a non-disparagement provision disallowing the staff to speak negatively about McLaren Macomb and a confidentiality provision that disallowed the staff from disclosing the terms of the severance agreement. 

The staff challenged the provisions (even though these are ordinarily included in severance agreements). McLaren Macomb contended that the provisions were lawful because McLaren Macomb did not separately violate any other portion of the NLRA and were unrelated to any union or protected activity. The NLRB disagreed. 

The NLRB decided that the non-disparagement and confidentiality provisions had a chilling effect on workers and interfered with their Section 7 rights under the NLRA to organize even though these workers were no longer going to be employed by McLaren Macomb. 

Though this case dealt with union employees, the implications of this opinion are far reaching as even non-union employees have rights to organize under Section 7. As a result of this opinion, Employers should carefully review and revise any severance or settlement agreement that they offer to employees. Otherwise, depending on the language of the severance agreement the entire agreement or the confidentiality and/or non-disparagement agreement could be deemed invalid. The attorneys at Bradley, Gmelich & Wellerstein LLP are here to help!

Gentle Reminders

  • Pursuant to Labor Code section 201.3, security companies must pay security officers weekly. Paying these employee bi-weekly or monthly will lead to individual and PAGA penalties.
  • Naranjo v. Spectrum Security Services, Inc. threw a curve ball at employers when the Court decided that premium pay for missed meal periods and rest breaks should be paid at an employee’s regular rate of pay rather than the employee’s regular rate of compensation which for decades was interpreted to be the employee’s hourly rate. If employers do not already, they should pay premium pay based on the employee’s regular rate of pay. 

Saba Zafar is Special Counsel in Bradley, Gmelich & Wellerstein LLP’s Employment Law Department. Ms. Zafar has over a decade of experience as an attorney, primarily in employment law. Ms. Zafar focuses her practice of providing strategic advice and counsel in all aspects of employment law and workplace matters, including drafting and implementation of HR policies and procedures, Employment Handbooks, providing advice to clients on personnel issues as well as general business matters.

About Bradley, Gmelich & Wellerstein LLP

Founded in 2000, Bradley, Gmelich & Wellerstein, LLP is dedicated to providing sound advice and exceptional results for our clients. Our twenty-five plus skilled, dedicated and diverse attorneys represent individuals and businesses of all sizes in a wide variety of business, employment law and litigation matters.  www.bgwlawyers.com.

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Kate

The Californian 2023 Q2: Heat Illness Prevention Plan

HEAT ILLNESS PREVENTION PLAN

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

With the change in seasons comes the warmer weather and it is imperative (and required by Cal/OSHA!) that all employers train their supervisors and employees on heat illness prevention. The safety of employees is the responsibility of the employer and if an unfortunate event does occur, Cal/OSHA may be investigating the event. If so, they will be asking if you have your Heat Illness Prevention Plan (HIPP) implemented. The investigation will include verification that you have provided training to your supervisors and employees and it is documented.

A Cal/OSHA study identified the key role that employers play in preventing worker fatalities due to heat illness. The findings highlighted the value of training supervisors and employees, so that they can make the fullest use of their power to control safety on the job.

Currently, the requirement for a HIPP is required primarily for outdoor exposures. However, in the future, Cal/OSHA may require modifications to your HIPP to include not only outdoor exposures, but also indoor exposures. Buildings, in hot weather conditions, may not have proper ventilation or may have mechanical breakdowns to the air conditional units causing heat exposures to employees. Be on the lookout for changes to the HIPP requirements.

California Code of Regulations, Title 8, Section 3395 Heat Illness Prevention requires all employers to have a Heat Illness Prevention Program which includes the following:
Provide fresh/potable drinking water
Employers must provide employees with fresh, pure, and suitably cool water, free of charge. Enough water must be provided for each employee to drink at least one quart, or four 8-ounce glasses, per hour and the water must be located as close as practicable to the work area. Employers are also required to encourage employees to drink water frequently

Provide access to shade When temperatures exceed 80 degrees, employees must be provided shade at all times in an area that is ventilated, cooled, or open to air and that is as close as practicable to the work area. There must be sufficient space provided in the shade to accommodate all employees taking rest. When temperatures do not exceed 80 degrees, employees must be provided timely access to shade upon request. Employees should be allowed and encouraged to take preventative cool-down rest as needed, for at least 5 minutes per rest needed.

Have high heat procedures in place High heat procedures are required of agricultural employers when temperatures exceed 95 degrees. The procedures must provide for the maintenance of effective communication with supervisors at all times, observance of employees for symptoms of heat illness, procedures for calling for emergency medical services, reminders for employees to drink water, pre-shift meetings to review heat procedures and the encouragement of employees to drink plenty of water and take preventative cool-down rest as needed.
Agricultural employers must additionally ensure employees take, at a minimum, one 10-minute preventative cool-down rest period every two hours in periods of high heat.

Allow for acclimatization New employees or those newly assigned to a high heat area must be closely observed for the first 14 days of their assignment. All employees must be observed for signs of heat illness during heat waves. A “heat wave” is any day where the temperature predicted is at least 80 degrees and/or 10 degrees higher than the average high daily temperature the preceding 5 days.

Train all employees regarding heat illness prevention Employees must be trained regarding the risk factors of heat illness and the employers’ procedures and obligations for complying with the Cal/OSHA requirements for heat illness prevention. Supervisors must additionally be trained regarding their obligations under the heat illness prevention plan and how to monitor weather reports and how to respond to heat warnings.

Have emergency response procedures Employers must have sufficient emergency response procedures to ensure employees exhibiting signs of heat illness are monitored and emergency medical services are called if necessary.

Have a Heat Illness Prevention Plan
Employers must have a written heat illness prevention plan that includes, at a minimum, the procedures for access to shade and water, high heat procedures, emergency response procedures, and acclimatization methods and procedures.

Download a sample Heat Illness Prevention Plan

With all of the constant changes and updates required by Cal/OSHA compliance, if you do not have a dedicated Safety Manager, we highly recommends hiring a Safety Consultant to make it easier on you to stay current. We have worked with EEAP/Got Safety for many years to customize Safety Plans and keep clients compliant. At this time, EEAP/Got Safety has partnered with us to provide CALSAGA Members with a reduced rate which is very reasonable. Please let them know that Tolman & Wiker/AssuredPartners of CA referred you and they will take care of you.

EEAP/Got Safety
Rick Rohmann, Operations Manager
Cell: 661-433-7063 – (Preferred Contact Method)
Office: 800-734-3574 Ext #102
Direct & Fax: 435-708-0014
www.gotsafety.com

Be safe and call us if you need assistance!

Shaun Kelly, Sr. VP, Risk Advisor
Tolman & Wiker Insurance Services/AssuredPartners of CA
(661) 616-4712

 

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.

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Aley Moyer

The Californian Q1 2023 – NEW CALIFORNIA LAWS FOR 2023 STRESS SAFETY, MORE REGULATIONS, AND ADDRESS WORKPLACE DISPARITY

NEW CALIFORNIA LAWS FOR 2023 STRESS SAFETY, MORE REGULATIONS, AND ADDRESS WORKPLACE DISPARITY

Barry A. Bradley, Esq., Managing Partner, Bradley, Gmelich + Wellerstein, CALSAGA Legal Advisor

California’s Governor Newsom signed 997 bills last year (and vetoed 169).  While there was a flurry of laws that protect women’s reproductive rights as a result of the overturning of Roe v. Wade by the U.S. Supreme Court, January 1st marks the enforcement of many other laws about which you should be aware.

Some will impact how you maneuver on the streets and sidewalks, some will impact employers as well as their employees and even job applicants, while another will protect the hides of some of our non-human animals.  Many that are noteworthy, or just plain interesting, are summed-up below.

2023 Is The Year Of The Jaywalker

It’s true!  You no longer have to cross streets only within crosswalks, only on green signals, only when the “Walk” sign is green, and only at corners.  Thanks to Assembly Bill (AB) 2147, peace officers can no longer stop a pedestrian for jaywalking violations UNLESS “a reasonably careful person would realize there is an immediate danger of a collision with a moving vehicle or other device moving exclusively by human power.”

While cars must always yield to pedestrians, you should always look out for your own safety and use reasonable care when crossing.

Bikers Rule!

In an effort to encourage more cycling and also to protect cyclists on the road, the legislature passed the OmniBike Bill, AB 1909 that will make life a little safer and protected for our two-wheeler friends and family members.

Autos Must Change Lanes to Pass a Bike.  It is no longer okay to pass bicyclists with just 3-feet of space between the biker and your car.  Where possible, motorists must treat bikers as if they are any other car, including signaling, going around them into another lane to pass, and provide adequate room.  This will hopefully reduce the hundreds of “near misses” that occur every day, not to mention serious accidents.

E-Bikes Allowed on All Bikeways

Move over, Tesla!  The electric bike is here to stay.  This bill outlaws municipalities from limiting access on bike lanes and bike paths.  This will allow e-bike riders to make use of the designated bike lanes and trails as an added measure of safety.  (For those concerned about our environmental impact, the e-bikes are still not allowed on equestrian and hiking trails.)

Bikes Can Cross on WALK signals

Pedestrians, look out!  Bikes can make use of the crosswalks and enjoy the safety that pedestrians have.

No More Bicycle Licensing Ordinances

And lastly, cities can no longer charge a fee or require registration of bicycles.  (However, bicyclists can still voluntarily register their bikes so they can be located in the case of theft.)

Pay Data Reporting and Pay Scale Disclosures 

As of January 1st, companies with 15 or more employees in California are now required to list salary ranges for all job postings. Senate Bill (SB) 1162 requires an employer to provide pay scale to an applicant or to an employee upon request. 

This new law complements previous legislation, SB 973, signed into law in 2020, which requires employers with more than 100 employees to submit wage data to the state’s Department of Fair Employment and Housing.

Failure to disclose the pay scale can result in stiff penalties for violators, and could also lead to a complaint with the Labor Commissioner or a civil action for an injunction against the company.

FAMILY LEAVE FOR MOURNING AND FOR CARING FOR NON-FAMILY MEMBERS

The California Family Rights Act (“CFRA”) has been amended to include bereavement leave.  Under AB 1949 all employers with 5 or more employees must now provide any employee who has worked for them for at least 30 days the right to take 5-days of unpaid bereavement leave for the death of a family member. 

Who Says You Can’t Pick Your Family?

Your close friend who’s “just like a brother to you” may now qualify as a “Designated Person” for whom you can take an unpaid leave of absence to care for.  Under AB 1041, the CFRA is expanded to allow employees to add to the list one extended family member or a person they consider to be family for whom the employee needs to provide care.  

With the close cross-over between CFRA and the Family Medical Leave Act (“FMLA”), a qualified employee under FMLA may now possibly be able to take up to 24-weeks of unpaid leave over a 12-month period, and still have their job protected!  (Work is overrated anyway!)

PRACTICE POINTER: Update your employee handbooks and policies to reflect the new law.

STATE HOLIDAYS: JUNETEENTH And the LUNAR NEW YEAR 

California now recognizes two new holidays as State Holidays.

Juneteenth commemorates the end of slavery in the United States.  Juneteenth (short for “June Nineteenth”) marks the arrival of federal troops in Galveston, Texas in 1865 to ensure that all enslaved people be freed.  This holiday is now codified in AB 1655.

This year also marks the Lunar New Year as an official state holiday. AB 2596 describes the calculation date. This is a moving target each year as it falls on “the second new moon following the winter solstice, or the third new moon following the winter solstice should an intercalary month intervene.” (Got that?)

While Juneteenth is a judicial holiday, the Lunar New Year is not yet federally recognized and will result in our state and federal courts remaining open. Other non-judicial State Holidays include Genocide Remembrance Day and Native American Day.

PRACTICE POINTER: Update your Employee Handbooks to include these new holidays!

New Laws Impacting “Proprietary” (In-House) Security Forces

While most of us know that licensed private security guard companies provide guards to patrol businesses, buildings and residences, there is another side to security that has been largely unregulated.

“Proprietary Security” is that which is provided by a business or school where the uniformed guards are directly employed by the business or school and not by a licensed security company.  (Think shopping malls, theme parks, certain department stores, many jewelry stores, bar bouncers, and most community college campus security forces.  These are “Proprietary Security.”)

AB 2515 has made some massive changes to the security industry, many of which directly impact this previous minimally regulated side of the security.

Registration Required

Proprietary Security Officers must be registered with the California Bureau of Security & Investigative Services (BSIS), and produce their registration upon demand to any law enforcement officer.  All officers must undergo a criminal background check and receive some training on the laws of the state.

Self-Reporting All Uses of Force

Riding the wave of reigning-in the use of force by police agencies, existing law was imposed on the licensed private security companies to ensure each guard received training, background checks and had to report all uses of force during an altercation. (See, AB 229.)

Under the new law, AB 2515, Proprietary Security Guards and their employers must report any physical altercation with a member of the public while on duty to (BSIS) within 7-business days.  This now imposes the same reporting requirements that the licensed security companies have complied with for years. The goal is to enhance the safety of the public.

The bill also requires actual training in the de-escalation of a situation and use of force training.  (Although not nearly as robust as the training required of the licensed private security guard companies and their security officers, it is a good start.)  

No More Weapons of Any Kind

Under AB 2515, Proprietary (In-House) Security officers are no longer allowed to carry any type of weapons.  This includes batons, pepper spray, Tasers, & of course, firearms. 

The law took effect on January 1st, and violators could face stiff fines and even misdemeanor charges. (The use of force training won’t go into effect until July 1st.) 

Another Year, Another Rose to Minimum Wage

Beginning January 1, 2023, the statewide minimum was supposed to increase to only $15.00 for employees with less than 26 employees and to $15.50 for employees with 26 or more employees.

However, due to inflation, the statewide minimum wage has increased to $15.50 for ALL employees.  (Remember that some local jurisdictions impose a higher minimum wage.)  This also means that exempt employees in California must be paid a minimum annual salary of $64,480.

Furless California

Finally, Animals throughout the state are ringing in the New Year with glee.  Following California’s concern and compassion for our four-legged friends, California is the first state to ban and outlaw the sale and production of animal fur products.  The landmark law, AB 44, went into effect on January 1st, 2023, making it illegal to sell new items made from the fur of undomesticated animals, including mink, rabbit and coyote. The law passed in 2019 and went into effect on January 1st, 2023. 

The law, sponsored by the Humane Society of the United States, reflects the evolving attitudes of compassionate Californians who reject fashion made from animals, and paves the way for other states to follow suit. It carries hefty fines for violators. (The bill excludes the use of fur for religious and cultural purposes.)

Barry A. Bradley is the managing partner of Bradley, Gmelich & Wellerstein LLP where he oversees the firm’s Business and Employment Department and heads up the firm’s Private Security Litigation Team.  A former Deputy District Attorney, Barry’s practice concentrates on licensing, employment and business related issues, defending cases involving negligent security, as well as assisting clients in avoiding liability through proactive, preventative measures. 

The firm acts as general counsel for many security companies in California.  Barry is a Legal Advisor to The California Association of Licensed Security Agencies, Guards & Associates (CALSAGA) and other non-profits.

He has been conferred an AV-Preeminent Peer Rating by Martindale Hubbell, the highest rating attainable, and has been named a Southern California Super Lawyer for the past 16 consecutive years in the area of Business Litigation.  Barry is also the recipient of CALSAGA’s Security Professional Lifetime Achievement Award. bbradley@bgwlawyers.com  818-243-5200.

About Bradley, Gmelich & Wellerstein LLP

Founded in 2000, Bradley, Gmelich & Wellerstein, LLP is dedicated to providing sound advice and exceptional results for our clients. Our twenty-five plus skilled, dedicated and diverse attorneys represent individuals and businesses of all sizes in a wide variety of business, employment law and litigation matters.  www.bgwlawyers.com.

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Aley Moyer

The Californian Q1 2023 – From Putting Out Fires to Addressing Issues Before They Happen

From Putting Out Fires to Addressing Issues Before They Happen

Jordan Wallach, Belfry Software, Associate Member

Managing all the pieces of a successful security operation is challenging. From recruiting, hiring, and training employees to scheduling, billing clients, and retaining employees, all these elements are interconnected and impact one another. When just one aspect falters, it affects the entire operation and leads to a negative client experience.

Unfortunately, most companies in the security guard services industry rely on fragmented systems to evaluate the health of their business. This leads to a reactive approach, where issues are addressed only after they arise. The problem here is that it doesn’t reduce the risk of these issues happening in the first place – driving you to constantly be putting out fires.

But having one integrated system isn’t enough – it needs to be intuitive for everyone on your staff and it needs to meaningfully save them time. Moreover, it needs to enable proactive, informed decisions, reducing the risk of issues arising in the first place. True business intelligence requires harnessing your company’s data and putting it to work across multiple functions.

For example, imagine having a system that schedules your officers and also processes their payroll. This way, you can match up timesheets exactly with the hours that were supposed to be worked – reducing payroll processing time from 3 days to 3 hours. By tracking officer performance across all areas, you could highlight great service to clients and provide training where needed. And with accurate billing generated from the same system, you can get paid quickly and on time.

Belfry has been solving these problems for customers across California and the US with the industry’s most modern application. Our goal is to help you turn data into actionable business intelligence, beginning to spend more time with your customers and less time putting out fires.

Jordan Wallach is the Co-Founder and CEO of Belfry, the modern operating system for security guard services companies and a CALSAGA Member. Prior to founding Belfry, Jordan was a consultant at McKinsey & Company and a Product Manager at Microsoft, building software used by millions of people worldwide. He has a bachelor’s degree in Data Science from Stanford University.

 

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Aley Moyer

The Californian Q1 2023 – 2023 Labor Trends: Retention and the First 90 Days

2023 Labor Trends: Retention and the First 90 Days

Andrea Willman, TEAM Software, CALSAGA Network Partner

The labor market has been, arguably, one of the biggest frustrations for security professionals over the past few years. The data proves it. 

National hiring rates during a six month period (industry agnostic) are trending up, although still slightly below pre-pandemic levels. As of September 2022, the labor participation rate across the country was an average .6% higher than the previous year, but 1.0% lower than pre-pandemic participation rates in December 2019 (63.3%).

When looking at sample data from TEAM Software by WorkWave, active employees within the security industry show a 2.2% average monthly increase for the 12-month period of October 2021 through September 2022.

Despite hiring significantly more than the national average, the net sum of workers in the security industry aren’t substantially increasing due to the amount of turnover. In order to maintain an average annual headcount of 100 employees, for example, a security company must hire 108 applicants a year. As such, retention remains a high priority.

The 90-day retention milestone

In the security industry, new hires are 53% more likely to retain for one year if they reach 90 days of employment. 

Some tactics industry leaders are including to increase retention, especially within the first 90 days, include: 

Job posting transparency

One of the biggest reasons new hires churn fast is because their job responsibilities don’t match expectations. Communicate responsibilities throughout the hiring process, from the job posting onward. Then, continue to reinforce expectations through accurate job instructions tied to your software solution. This should include digital resources on the job profile that can be easily shared or accessed, text fields for specific notes and job-specific documents, bulletins, events or links.

Flexible work

Flexibility is a growing demand in applicant pools. The nature of physical security means there will always be a need for on-site, shift-based work. However, introducing flexibility into your employees’ experience where you can – like self-scheduling, where employees can offer their shifts to others without needing to involve a schedule or supervisor – can improve employee engagement and retention while simultaneously reducing high-cost expenses, like overtime. Others can pick up open work and mark themselves as available if they want to pick up additional hours. This tactic can also alleviate some administrative scheduling tasks from your managers, while still ensuring contract coverage. 

Earned wage access

Earned wage access provides a way for employees to receive payment for hours worked, without having to wait for the next pay cycle to process. One of the biggest barriers employees face in succeeding at a field job is the reliability of their transportation. Sometimes, the gap between paychecks impacts a worker’s ability to afford transit, let alone living expenses.

This can make a big difference in employee financial wellness even during times of economic stability. In times of uncertainty that bring rising fuel prices, energy crises and more unrest, access to wages on demand can make a critical difference to employee wellbeing and workforce engagement.

Incentive programs

Employee referral programs exist as an incentive for an existing employee to refer a potential new employee to your hiring staff. If the candidate is hired, the existing employee receives a benefit, typically of monetary value. Many companies have programs like this in place, yet don’t see referrals as a leading hiring source. The reason why could be because the policy is out of sight, out of mind. Make sure your human resources staff are sharing incentive programs like employee referrals consistently and often. As you’re developing these programs, build them with retention in mind. Build in agreements that both the new hire and referring employee need to remain employed for a certain period of time – 90 days, at least – to qualify for the benefit. 

Any one of these tactics, or a combination of all, can help encourage retention to and past the 90-day mark, when the odds of longer-term retention increase. For more labor trend data you can use to help support your retention strategies, access TEAM Software by WorkWave’s recent data report, an analysis of recent trends and forecasts for the year ahead.  

For more information on technology-driven software solutions to help support your hiring, retention and other workforce needs, visit teamsoftware.com. 

Andrea has over 15 years of software-as-a-service (SaaS) marketing experience. In her role as Marketing Director at TEAM Software by WorkWave, she drives the company’s strategic marketing direction globally.  She is a graduate of the University of Nebraska-Lincoln, where she earned her Bachelor’s degree in Journalism.

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Aley Moyer

The Californian Q1 2023 – Profitability in a New Year

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Profitability in a New Year

Brandy Tomasek, TEAM Software, CALSAGA Network Partner

One of the most straight-forward ways to increase job profitability is to decrease job-related spending. As much of the world faces the possibility of a recession, decreasing spending is top of mind across industries. 

Still, it can seem impossible to cut back on necessary expenditures. Our industry-specific labor market analysis suggests ongoing competitiveness. Labor and overhead – already a significant portion of a security company’s expenses – will likely remain high. 

That’s why it is more important than ever to maintain a clear and accurate picture of your profitability. Job costing should be the driving data force behind every decision you make. 

Job costing: explained

Job costing is an accounting term that enables a business to track costs by individual jobs. The more granular detail you can gather, the more opportunity you have to protect your profit margins. That’s why getting accurate numbers and recording each one down to the job level is so important in protecting profitability – and helping support a data-backed strategy to help you operate better in the future.  

Typically, companies have some kind of process in place that is capturing a 1,000 foot view of profitability. Opportunities are often missed by neglecting to calculate true cost overhead expenses into job-level data. This can include anything from payroll taxes and workers comp, to general liability insurance, supplies, fuel and more. When you don’t account for a portion of these expenses as a cost per job, you really aren’t getting an accurate picture of what it took from your expense budget to service that contract. As labor and supply shortages continue, continuing to take on unprofitable contracts can be dangerous to your resources, time and bottom-line. 

Here’s how job costing should work as a part of your back-office system: 

Process every financial transaction with an associated job number. That includes everything from payroll, to accounts receivable and payable, to adjusting journal entries. At TEAM Software, we’ve built our software solution to include even more features that allow for payroll taxes and miscellaneous insurance costs to be taken down to the job level, based on payroll dollars at that specific job. 

After recording all associated activity to the job level, the rendered data can be used to review accurate accounting practices, compare the data to budgets and (of course) make sure you’re profiting. This information can and should be heavily relied upon for contract renegotiation and bidding future work that might be similar to an existing job.

This kind of feature, when built as a part of an integrated software solution that connects operations, accounting and finance, and the back-office, really sets up security companies to scale, even when times are tough. Remember, your clients are likely seeking to conserve costs as much as you are. Reliable and accurate data gathered through activities like job costing give you the tools to provide clear reporting on the services – and value – you’re delivering on each job. Having this data gathered in one integrated software solution also helps preserve knowledge in the case of turnover at the back-office level, too. 

Now’s the time to fine-tune processes

In an age where manpower is harder to come by, improving back-end systems and software solutions can create efficiencies to reduce your dependency on added overhead. Not only does it shed light onto how much money your company has brought in for a particular job, it provides clear data on how much money your company actually made per job. Once you have this knowledge, you can better allocate resources, adjust SLAs and billing, and fine-tune operations so that you are curbing costs and maximizing profit as much as possible in a tightened economy. 

If you’re new to job costing, remember the industry experts at TEAM Software are always available to help support your goal of reducing costs, maximizing opportunities and supporting profitability. 

Brandy Tomasek joined TEAM Software by WorkWave in 2016. She’s a part of the Client Experience team, working as a Sr. Implementation Lead and Business Consultant. Prior to joining TEAM Software, Brandy earned a Bachelor’s degree in Management and Marketing, as well as her MBA in Organizational Leadership. Brandy’s professional experience spans a range of disciplines from back office accounting to management and leadership in various industries.

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Aley Moyer

The Californian Q1 2023 – Insurance Market Update

Insurance Market Update

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

Happy New Year! I cannot believe we are already one month into 2023.

Honestly, I think I have discussed the changes in the insurance marketplace several times over the past few months and have almost beaten the topic to death. However, even more changes have arose and I feel it is good information for you to know. Insurance is a large budget expense and you cannot operate without it. 

The start of the year has brought on many surprises and I want to share some of the changes we are experiencing. There is some good news and, of course, some not so good news. Here is a brief update on status of the insurance market:

Workers Compensation: The Workers Compensation market is still competitive, Good News! There are new carriers entering this space and we expect that this will last at least throughout the year. The competitiveness of the market is primarily due to the increases in the minimum wage, increase in payroll and the growth of the Security Industry. Insurance carriers are receiving enough premium and controlling the claims/losses to remain profitable. There is no indication that this will change soon. 

General Liability: How do I start? Almost all insurance carriers are increasing premium rates to offset the claims over the past years. The frequency and severity of claims have caused the underwriting guidelines to change, and not in a good way. This results in the insurance carriers adding “Exclusions” to limit their exposure to potential high hazard claims/losses. The “Exclusions” are different for every insurance carrier and in some cases very restrictive, to a point that you wonder if you have any coverage at all.  In some instances, the new underwriting guidelines have made it very difficult to place coverage at a competitive premium. Some PPO’s have had to evaluate their client mix to meet the underwriting guidelines and keep premium increases at a minimum. We can almost always obtain coverage for any PPO, regardless of contract mix, however the premiums may be too expensive and then we have to determine if maintaining those particular clients makes financial sense.  

Business Auto: The Business Auto insurance has not been profitable for insurance carriers over the years. They have indicated that they are not receiving enough premium to cover their losses. Some carriers have left the market for Business Auto (Specifically CA), leaving fewer carriers that will entertain quoting auto insurance. The cause of their departure is the result of increases in repair costs, higher liability settlements, combined with an increase in the number of claims. With fewer insurance carriers and increasing premium rates, expect your Business Auto renewal premiums to be much higher. To minimize the increase in premiums, always ask if the Business Auto can be written in conjunction with the same insurance carrier that writes the General Liability or Workers Compensation.

Umbrella: Same as above, settlements for large losses are significantly increasing. If General Liability and Auto Liability premiums are increasing, the Umbrella premiums will react the same. Due to the claims triggering the Umbrella, it is to a point that the Umbrella market is reducing the amount of Umbrella limits they will offer. It was standard to obtain quotes for $10M with no problem at all. Now, we may be able to obtain limits of $5M and then the premiums for limits over $5M are expensive and may not provide the same coverage as the underlying General Liability policy. Then there would be “Gaps” in coverage for the additional Umbrella policy. 

Employment Practices Liability: Remains stable, as long as there are no losses. 

At the end of the day, please be proactive and complete applications early. And, review them with your Broker before allowing them to be submitted to the insurance carriers for quotes. If you can negotiate favorable terms early, that will eliminate a lot of stress as the renewal date approaches. We are receiving calls from PPO’s at the last minute asking for help to place insurance coverage, because their current carriers have either non-renewed and/or they cannot find replacement coverage to include all of their operations. This could be due to several reasons: losses over the past 5 years, types of client mix (Schools, retail, executive protection, crowd control, residential….), additional exclusions added to the General Liability policy and significant increase in premiums. 

We wish you the best in 2023 and take care.

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.

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