Aley Moyer

The Californian 2022 Q3 – Three Tips to Reduce Overtime, Now.

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THREE TIPS TO REDUCE OVERTIME, NOW. 

Plus: Things to keep in mind when dealing with overtime during a labor shortage.

Gail Tutt, TEAM Software by WorkWave

We’ve said it before and we’ll say it again: the best way to reduce overtime is to stop it before it starts. It’s a little cliché, especially when overtime (and, unfortunately, non-billable overtime) is an inherent part of the security industry. Still, there are several tactics you can use to get a handle on overtime and manage labor costs. 

1. Know your service-level agreements. This doesn’t just mean at the executive level. Because SLAs dictate the service standards and pricing obligations you’re required to deliver to your customers, it’s imperative that any employee who is involved in managing your company’s scheduling is well versed in bill and pay rates by contract. By ensuring understanding in all scheduling roles, you can prevent costly mistakes (like wage creep, which can occur in a variety of scenarios, but especially when officers are scheduled for overtime shifts outside of the scope of what’s budgeted per job.) 

By knowing your SLAs inside and out, your company is also setting up the foundation for best practices in job costing. With industry-specific software solutions to assist in the heavy lifting of tracking and analyzing job performance, you can see at a glance which jobs are lending themselves to your profit margins, and which are under performing.

2. Don’t forget about compliance. In some cases, there’s no way around scheduling overtime without compromising your compliance with state and federal labor law regulations and overtime rules. In our industry, there are compliance risks posed from misclassification, recordkeeping and other hour and wage-related activities that can turn your timekeeping and overtime tracking into a headache. Earlier this year, even, this entity reported a wage settlement (with waiting time penalties) due to an upheld ruling alleging an employer failed to include meal period premiums on wage statements. A different case in 2021 found the California Supreme Court upholding that employers are required to pay meal and rest break violation premiums at the same rate as when paying overtime. Translation: these costs add up quickly.

While many integrated workforce management solutions don’t track compliance for you, they do provide tools to more easily prove compliance. Look for feature sets which include things like time and attendance (including punch times), scheduling, regulation monitoring and reporting to gain well-rounded visibility into your compliance.  

3. Become friends with your data. This point is straightforward: dig into your data early on in your scheduling process. In available TEAM solutions, we recommend including criteria like parameter searches for available guards that fit within the bill rate specified per job. That way, your schedulers will only be able to assign officers to shifts whose rate fits the given budget (see our first point).

Often, we find companies can implement at least one of these tips to help prevent and improve overtime. But we also recognize that the current labor market throws a new wrench into the mix. When it’s hard to find officers to fill shifts in general, of course it becomes more likely for regular shifts to turn into overtime to stay on top of SLAs. While there’s no easy answer, it’s possible resolving this particular overtime challenge can be addressed by refocusing on retention.

Start by taking a few steps back to analyze what your voluntary separations look like. Are officers leaving for higher hourly rates or benefits? Or are they leaving for more flexibility in their schedules? Maybe they’re pivoting careers into adjacent industries or taking even bigger leaps into entirely new verticals. The common theme of all these scenarios is that it is likely not a separation on bad terms. This could be an opportunity to think outside the box in the form of a self-scheduling program. This way, employees stay in your employee management system (as part-time or ad hoc employees) and can pick up shifts based on when they want to work (even if they are employed elsewhere). While it may not work for everyone, it is an interesting tactic to reduce overtime needs while increasing employee retention.

It’s hard to theorize if there will ever be a world without overtime in some capacity. But, there are steps you can take to improve this metric now. See how at teamsoftware.com. 

Gail has spent over 35 years in the private sector as a senior level finance and operations manager across multiple industry. Most recently CFO of a regional security company in San Jose, CA, Gail now works providing invaluable insight and expertise as a business consultant with TEAM Software.  Her hobbies include breeding and showing standard wirehair dachshunds, hiking and spending time with her family.

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Aley Moyer

The Californian 2022 Q3 – What is Included and/or Excluded from Premium in a Workers Compensation Audit?

WHAT IS INCLUDED AND/OR EXCLUDED FROM PREMIUM IN A WORKERS COMPENSATION AUDIT?

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

Hope all is well with everyone.

In my last article, we discussed why Workers Compensation auditors are requesting more information than they have in previous years. This is due to the passing of Assembly Bill 5 (AB-5), which redefines the guidelines of whether a worker is an independent contractor or not (The ABC test). Auditors are requesting additional financial information to determine if employers are using independent contractors.

In this article, we are providing information on what is included and/or excluded in determining your premium in a Workers Compensation audit. This will include information regarding some of the following:

  • Sick pay
  • Vacation Pay
  • Bonuses
  • Attendance at conferences
  • Automobile allowance
  • Employee benefits
  • Commuter compensation
  • Meals
  • On Call/Stand By pay
  • Uniform allowance
  • More

Please see the attached Payroll/Remuneration Table from the California Workers Compensation Uniform Statistical Rating Plan (Also known as the USRP).

The USRP is updated and approved by the California Insurance Commissioner periodically. You can find the complete USRP on the Workers Compensation Insurance Rating Bureau (WCIRB) website at wcirb.com under Filings and Plans.

If you have any questions, please feel free to contact me.

Take care and see you all at the CALSAGA Annual Conference.

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 2022 Q3 – Is Inflation to Blame for Rising Security Firm Insurance Premiums?

IS INFLATION TO BLAME FOR RISING SECURITY FIRM INSURANCE PREMIUMS?

Tory Brownyard, Brownyard Group

In California gas prices have risen above five dollars a gallon. Food banks are experiencing extraordinary demand. Mortgage rates, housing prices, residential rent and even home repair and replacement costs are soaring. For many Americans, this historic rate of inflation has become real, unprecedented and problematic. As consumers feel the brunt of inflation, its impact also spans various industries throughout the U.S. For the private security insurance industry, the market continues to harden, due to both inflation and other factors.  

While a major contributor, however, inflation is just one factor making it more challenging for security firms to secure the insurance they need to mitigate their risk exposure, and of course, meet required insurance obligations featured in every service contract.

Extreme Loss and a Rise in Crime

Inflation aside, many insurance carriers assess the risk and associated cost of premiums based on the history of loss in the industry as well as the individual organization’s claims history and operational practices.

One tragic example of an operational impact includes the May 2022 Securitas Security Services $517.5 million settlement paid to the victims of the June 24, 2021 partial collapse of Champlain Towers in Miami. Among the determining factors for Securitas paying nearly half of the more than $1 billion settlement included the failure of the security guard on duty in activating the building’s alarm system to signal an emergency evacuation. In a deposition, the company’s manager acknowledged a lack of training contributed to the system not being used despite the guard on duty calling 911 approximately 10 minutes before the structure failed, killing 98 people. 

Multi-million-dollar settlements like that of Securitas will have major ripple effects across the security industry for years to come.

Other examples include the recent spike in active shooter situations, including the devastating incident in Uvalde, TX and the Fourth of July shooting in Highland Park, IL. In addition to the tragic loss of life, more than 300 mass shootings have occurred by the mid-point of the year, putting 2022 on track to meet or surpass the record 700 shootings in 2021 or the previous record of 611 shootings in 2020. In many, but not all such mass shooting incidents, private security firms face the public’s wrath, legal inquiries and countless lawsuits. The resulting litigation often produces what many term nuclear verdicts handed down by the courts, loosely defined as exceptionally high jury awards that exceed what most would consider reasonable.

Large jury awards against security firms can often be traced back to failures in training, client screening, contract language and communication. So, while inflation is certainly a factor, there are other circumstances within the control of the industry itself to limit its own risk and exposure.

Managing Risk

Steps security firms can take to reduce their exposure and slow or mitigate the rise in their premiums include:

  •         Carefully selecting clients: As the shootings in Uvalde, Buffalo, Highland Park and Biloxi — among others — have taught us, active shooter or violent situations can occur anywhere, among anyone at any time. However, when it comes to underwriting the security industry, insurers will often look closely at the types of clients the firm takes on. Those who take on high-risk clients, those with more public exposure such as bars and nightclubs, shopping malls and sport or concert venues, will often give insurers pause. If an insurer does cover a security firm with such clients, the premium is sure to be much higher than those who take on low-risk clients. Low-risk clients are those with less public exposure, including warehouses, office buildings and industrial type clients.
  •         Mitigating liability: To minimize risks, a security firm should always speak with their insurance partner before taking on a new contract. The insurance partner can help advise on what to avoid and can ensure proper coverage is obtained to best meet the firm’s needs and client types. Firms should also consider their policy limits when taking on new clients and make necessary adjustments in consultation with their agent or broker. High-risk clients can often demand higher limits of liability, and excess and umbrella policies can provide needed coverage beyond the scope of the original policy.
  •         Reading the fine print: Security firms should also consider contractual language carefully before taking on new clients. Ensuring their guards are only liable for their own negligence and wrong doing is critical. Also, it is recommended that clear and concise expectations for all parties are written into the contract. This can help avoid costly lawsuits and needless blame.
  •         Prioritizing training and communication: California state law requires 32 hours of training to acquire a security license, and eight hours of training each subsequent year to maintain the license. While this training provides guards with the tools and knowledge to perform their duties to industry standards, additional training for de-escalation, the dangers of restraints, active shooter or other situations is also recommended. Regularly revisiting and updating such training is vitally important. However, even the best training can fall short in an emergency. Clear communication protocols for security guards to seek and receive updated instructions can make the difference between managing a crisis or facing unfortunate and avoidable consequences. When all else fails, security guards should be able to rely on universally understood and transparent orders and expectations established within the signed contract.

Staffing and resource limitations among local law enforcement along with rising crime in certain localities will continue to drive the need for more private security by event and property managers, among others. Increased demand, paired with higher risk security situations, directly affects the rise in insurance premiums for private security firms. This rise of risk and premiums will continue to contribute to insurers being much more selective in the types of security firms they are willing to cover. Working with their insurance agents and brokers, security firm leaders can play an active role in minimizing their risk to avoid major losses and secure reasonable coverage to allow them to keep both their clients and their businesses safe.

Tory Brownyard, CPCU, is president of Brownyard Group, an insurance program administrator with specialty programs for select industry groups. In addition to his responsibilities as president, he currently spearheads the Brownguard® security guard insurance program.

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Aley Moyer

The Californian 2022 Q2 – PREPARING FOR YOUR BSIS RECORDS AUDIT

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PREPARING FOR YOUR BSIS RECORDS AUDIT

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

So, you received a letter from the Bureau of Security and Investigative Services advising that they will be conducting “a routine inspection” of your documents.  It should take no more than two hours (on the average) and the meeting should include the owner(s), executive principals and/or possibly administrative staff “to assess and discuss key aspects of your daily operations” as a PPO.

ALARMS should be going off for you!  There is nothing routine about this. Compliance audits are increasing and you should expect one this year.  In every instance where our clients have contacted us, they have been out of compliance – some just a little, others a lot.  This, despite their best intentions.  

The opportunity to fix your records before you are audited could mean the difference between no citation at all, versus an administrative fine, a cease and desist order, and potential suspension or revocation of your PPO license.  This all becomes very public, too. Make no mistake about it: BSIS is here to regulate, not to collaborate.

Areas Of Concern

As a PPO licensee, you have obligations that will require you to address various areas.  What follows are some of the broad categories that will be inspected.

PPO Records, Vehicles and Uniforms:

  • Are your PPO license and all branch licenses properly displayed.
  • Are your records kept at your principle place of business – as recorded with the Bureau?
  • Are your current badges and patches in conformity with the original BSIS approval?
  • Are your current badges, patches and insignias in compliance with the Private Security Services Act?
  • Are your Certificates of Insurance for both workers compensation and for General Liability in compliance with Business & Professions Code 7583.39 as well as the California Code of Regulations?  
  • Do your advertisements display your PPO number? This might include websites, social media, vehicles, business cards and brochures.
  • Is your business structure in compliance with statutes?
  • Do your business records match the Secretary of State records, as well as BSIS records?
  • Are your patrol vehicles in compliance with the Vehicle Code and the B&P Code regarding their light bars and decals?
  • Are your uniforms in compliance with Business & Professions Code section 7582.26?

Employee Records:

  • Do you maintain the name, address, commencing date of employment, position, and date of termination of each employee in compliance with the Code?
  • Do you maintain current guard card and firearm qualification permit information?
  • Personnel Files: do they contain guard card information, training, and required certifications? (This may include pepper spray and baton permits, as well.)
  • Do you have proper credentials for your off-duty Peace Officers, including a letter from their agency?

Weapons:

  • Do you maintain the required log for all deadly weapons used on duty, including firearms and batons, in compliance with the Code of Regulations? 

Training Certificates and Records :

  • Do you have Certificates of Completion for each course or series of courses for each and every security guard?
  • Do your Certificates contain the required language and information?
  • Do you maintain proof of completion for the Powers to Arrest training for all security guards.
  • Do you have a certificate of proficiency from a licensed training facility for all of your armed officers?
  • Do you maintain proof of completion of the 32 hours of security guard skills training for all guards. (16 in 30 days / 16 in 6 months) and continuing annual training (8 hours)?

RECOMMENDATION: This list is by no means exhaustive.  We recommend a quick legal review well before your audit date.  There will always be blind spots – some significant and some minor.  Our goal, and yours, should be to become compliant (and hopefully before your “routine inspection” by the Bureau).

 

Barry A. Bradley is the Managing Partner of Bradley, Gmelich & Wellerstein LLP located in Glendale, California, where he oversees the Employment and Business Teams at the firm.  A former Deputy District Attorney, Barry’s practice concentrates on representing business owners in employment, business and licensing issues, as well as defending litigated cases involving negligent security, employment and business related issues.  The firm acts as general counsel for many security companies in California.  Barry is a volunteer Legal Advisor to the California Association of Licensed Agencies, Guards, & Associates (CALSAGA), and multiple 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 can be reached at 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 2022 Q2 – ADDING VALUE TO YOUR BIDS AND PROPOSALS

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ADDING VALUE TO YOUR BIDS AND PROPOSALS

Debbie Trecek Volkens, TEAM Software, CALSAGA Network Partner

Lowest bid technically acceptable is a painful part of the industry we work in. It’s why, sometimes, strategic initiatives to become more efficient fall to the back burner: initial investments in time and resources can seem like an unnecessary burden when you’re struggling to fill shifts and keep operating expenses within budget. 

The catch twenty-two about a back-burner approach, though, is that you cannot lower your costs and grow your profit without taking that first step towards efficiency. One tactic you can use to kickstart the process is to look at your business proposals and highlight where an efficiency-driving solution can bring direct value to your clients. Look at these five key areas of need your prospective clients are asking for and add information to your bids to strengthen your proposals. 

Qualified Guards On Site. 

Your clients are ensuring guards with the right qualifications are filling the needs of their contracts in order to create the safest and most secure environment possible. Demonstrate how you record and track certifications of officers, and send notifications when certifications are due to be updated. 

Reduced Liability And Risk. 

Incidents and risk open your clients up to liability and lawsuits. Demonstrate how you help shoulder that responsibility of welfare by monitoring where and when an officer is onsite (and how you have evidence via location tracking technology, checkpoint documentation or rich media like photos and video to back up your claims). Be prepared to offer daily shift reports to provide visibility and quality assurance, and showcase your safety procedures and automated communication flows so you can keep your clients aware of an unfolding incident and resolution status. 

Communication, Response Times And Customer Service. 

If there is an incident on site, your client needs it to be resolved appropriately and quickly. You should be able to send quick messages (like texts, emails or phone calls) securely to individual officers, or to larger patrol teams. Emergency communication automations can be leveraged to support your resolution practices and bring examples of reporting materials (like activity logs, incident reports and inspections). Ask questions about what your prospective client’s current procedure looks like and show them how reporting tools can be configured to their specifications. 

Reputation And Proof Of Service. 

You know software can’t complete physical security tasks for you, but it can improve the quality and consistency of the work you already provide. It can eliminate fraudulent timekeeping practices (like buddy punching) and ensure billable work is transparent and accurate. It can record your scope of work and identify areas of improvement. It can improve scheduling and reduce overtime (billable and non-billable). And, it proves it’s delivering in all of these areas through reporting and analytics tools as an asset to support your company’s reputation. 

Cost-Effective Services. 

It’s likely your clients don’t care what tools you’re using to get the job done. But, showcasing the value software brings to these areas can strengthen the value your company brings to your bidding proposal. Your data working together in one system helps drive efficiencies to your bottom line, meaning you can more competitively bid contracts. Then, you can pass that on to your customers, who win by gaining the best quality of service at the best price. 

When it’s clear the value outweighs the costs, you’ll have strengthened your competitive position and achieved an advantage.

 

Debbie joined TEAM in 2020 and works as a content marketing specialist. Her goal is to connect the dots between industry needs and product solutions through engaging, educational and valuable content. Debbie holds a bachelor’s degree in marketing and management from Peru State College, where she graduated summa cum laude.

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Aley Moyer

The Californian 2022 Q2 – SPRING CLEANING: THERE’S NO BETTER TIME FOR YOUR NEXT HR AUDIT

SPRING CLEANING: THERE’S NO BETTER TIME FOR YOUR NEXT HR AUDIT

Anne Laguzza, The Works Consulting, Network Partner

As a California business owner, you may have jumped for joy at the start of the year when you realized there were significantly fewer changes to employment legislation than in previous years. If you’re with the majority, you probably did a quick update to your policies and procedures, and then filed them away until next year. 

Just as I did with my clients, I’d like to encourage you to use this unusual gift to your advantage. It’s time for a bit of spring cleaning! Remember, legal compliance is only one part of your human resources practice. Fewer new laws means more breathing room for California employers and, therefore, the ability to more clearly look at the other aspects of your business that may need to undergo some optimization. 

That’s where an HR audit comes in to play.

The security industry—like many other industries today—is grappling with maintaining a strong and consistent workforce. As such, there is absolutely no better time to conduct a comprehensive HR audit to bolster your competitive advantage while doing a bit of risk mitigation that will help you down the road. With new jobs popping up regularly, your human resources practices are operating at a rapid pace that may result in errors and, potentially, legal consequences. It’s important to take the opportunity now to make sure that you’re set up to do the right thing, every time.

If you’ve never conducted this kind of audit, or it’s been awhile since you last did, here’s my guide to making sure it helps your business for years to come.

What is an HR Audit?

Let’s start with the basics—an HR audit takes a formal inventory of your company’s practices from hiring to termination of employment. This includes reviewing and optimizing any outdated or ineffective processes, procedures or company policies. The intent of an HR audit is not necessarily to determine what you are doing wrong, but instead, to understand what is going well and could be even better. 

An HR audit is meant to serve as the first step in aligning human resources operations with the strategic goals of your organization.

When was the last time you reviewed your organization’s wage statement? New hire forms? Leave of absence process? Job classifications? Benefits packages?

Everything that governs your employees fits under the umbrella of what can and should be included in an HR audit.

Who should be conducting my HR audit?

If you have an HR department or dedicated HR professional, it’s important that someone outside of your HR team lead and oversee the process. This ensures that organizations maintain checks and balances with an objective, second set of eyes managing the audit process. This can be someone from a different department within your organization who has the knowledge and experience to review the details.

For organizations that don’t have the internal support required to keep the process objective, an external HR consultant can be a great candidate to help facilitate the audit. Most importantly, this person should deeply understand your industry and the unique challenges that you face every day. Furthermore, there’s a lot to know about conducting a well-functioning business in California specifically, so an HR consultant ingrained in the region is going to be your best bet.

What are the main components of an HR audit?

A successful HR audit will take into thoughtful consideration the distinctive aspects of the company and its practices. However, there are some common threads that will benefit any organization. Fundamentally, an HR audit will consider:

  • How are people coming into the company? 
  • How are people operating within the company? 
  • How are people leaving the company?

For the security industry, in particular, I recommend my clients take a close look at the following aspects of their HR practices:

  1. Talent Acquisition and Orientation – This should encompass your recruiting, hiring and new hire training processes, including employment applications as well as interviewing and selection protocols.
  2. Compensation and Benefits Administration – This portion of your audit will review everything from job classifications to rest and meal periods, cell phone allowances and leaves of absence.
  3. Training and Development – For the security industry, this is a significant component of any HR audit, including a review of required training, both for armed and unarmed officers.
  4. Communication and Employee Retention – This will include a review of any employee recognition programs as well as protocols for performance feedback and methods of maintaining company culture.
  5. Document Review – Any HR audit should take into consideration the company’s existing employee paperwork, updating any items that are outdated or inconsistent with the company’s current practices.
  6. Employee Files – As an offshoot of document review, I also recommend that companies review a sampling of their employee files (electronic or paper) to ensure that they are organized, up-to-date and that information is easily accessible.
  7. Termination of Employment – This includes a review of the processes surrounding termination of employment to ensure that the company is in compliance with current final paycheck requirements and protocols for offboarding an employee.

For the majority of employers, I recommend that the HR audit process start with a thorough review of the current version of the company’s Employee Handbook. The Employee Handbook is an important document to keep current and ensure that your practices match your policies. This is always a good baseline to determine if anything is missing, incomplete or in need of improvement.

With all of these tips in mind, you’re ready to go forth and conquer your company’s 2022 HR Audit!

 

Anne Laguzza is the CEO of The Works Consulting, a CALSAGA Network Partner. 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. For more information, check out theworksconsulting.com or email anne@theworksconsulting.com. You can also find Anne on Instagram and LinkedIn.

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Aley Moyer

The Californian 2022 Q2 – POSITIONING YOURSELF AS AN EMPLOYER OF CHOICE

POSITIONING YOURSELF AS AN EMPLOYER OF CHOICE

Jeff Davis, Group Vice President, Solution Sales, WorkWave

It comes as no surprise that hiring (and retention) is still a hot topic in the security industry. While there’s no magic answer to overcoming the challenges of today’s competitive market, we know the key to attracting talent is to position yourself as an employer of choice. There are the obvious variables you should consider when making your open positions competitive (like wages and benefits, for example). The other part of that strategy is making sure the right applicants know who you are, or how to find out more about you.

That’s easier said than done. You can post an opening to a job board and post about it on your website or social media, but that’s only the first step in becoming more visible. You need to make sure that job seekers can find you, they can understand your website, and the information you’re presenting is clear. To achieve those things, you need to start thinking like a marketer. 

Start by comparing a traditional recruitment funnel against a traditional marketing funnel. They really aren’t all that different, especially in the beginning stages. Awareness is at the top of each process and where you have the most opportunity to position yourself as an employer of choice. This is your first touch point with potential job candidates and the stage where you can set the framework for the quantity and quality of your candidate leads. To improve awareness, think about: 

  • Improving your SEO. To those outside the marketing field, SEO may sound daunting, but it’s a readily available tool you can draw on to make your company — and website — more “findable” by job seekers. Using what you can find from SEO, you can add keywords to job descriptions, organic and paid ads, blog posts and webpages to help increase visibility where you need it. 
  • Expanding your content. Don’t only think about job postings and descriptions when your goal is hiring (although those are important, too.) Think about your overall brand. Are you demonstrating your company’s values, or highlighting reasons why someone would want to choose you as a place of employment over a competitor? Think about how you’re showing these things. Can you highlight testimonials from current employees? Can you demonstrate a walk-through of a “day in the life” of what the open position would require? Be accurate (while also being conscious of not sharing any information from your clients or contracts) and take what you find to the applicant directly — whether that’s social media, job boards, or traditional in-person recruitment events.

Gain more marketing advice and other best practices based on current industry trends.

After you’ve begun engaging with a pool of potential job applicants, then you can start narrowing your focus on the middle and end stages of the hiring funnel. Plan to dedicate real time to job descriptions and listings. 

Pro tip: Familiarize yourself with the rules of specific job boards. Some will remove your job listings if you ask certain information, like age or background checks. If that criterion is required for your screening process, make sure you’re including the qualifying criteria as required responses in your applicant tracking and hiring system.

In your job listings themselves, don’t be limited by wage and benefit information. Can you offer jobs that are more convenient to an applicant based on proximity to residence? Are you able to offer shift flexibility, a hiring bonus, or a guaranteed bonus after a certain period on the job? Even if it’s seemingly small, any detail can set you apart in the market — especially as job flexibility becomes a bigger consideration for today’s job seekers. Just make sure you’re being accurate. Remember, the goal should be to attract quality applicants, not quantity.

Marketing is a crucial step in staying ahead of the competition in a tight labor market. If you’re looking for help in website design, SEO or other opportunities to improve your recruitment marketing, TEAM Software by WorkWave can help. 

For the last 20 years, Jeff has focused on technology, working in sales and marketing to executive leadership, with five years specializing in human resources technology. Within his leadership role at WorkWave, which acquired TEAM Software in 2021, Jeff serves as a subject matter expert delivering marketing and service solutions to service contractors worldwide.

 

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Aley Moyer

The Californian 2022 Q2 – THE IMPORTANCE OF DE-ESCALATION TRAINING IN A POST-LOCKDOWN WORLD

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THE IMPORTANCE OF DE-ESCALATION TRAINING IN A POST-LOCKDOWN WORLD

Tory Brownyard, Brownyard Group

In early April, three women physically attacked a security officer at a Macy’s in Palo Alto, California. When asked to return stolen goods the women punched the officer in the face and the head and assaulted him with pepper spray. Similar situations have become all too common for security professionals, particularly as people struggle to adapt to a new hybrid environment after two years of lockdowns, heightened stress and increased economic pressures. With this spike in aggressive behavior, security firms are faced with new challenges and risks involving the safety of their employees and the success of their business.

The Risks

Security professionals face risks every day. In hospitals, restaurants, airports, office parks and shopping malls, a normally calm situation can quickly escalate. When rising tensions and aggressive behavior are added into the equation, the risk to security firms and their employees can increase significantly. These risks can include: 

  • Employee Safety: Over the past two years security professionals were asked to take on new and added responsibilities, including asking for the vaccination status of members of the public attempting to enter certain facilities, enforcing mask mandates and limiting access to various venues or facilities. In some of these situations, members of the public directed their frustrations at security personnel tasked with ensuring their safety and the safety of others. In more than a few instances, these situations turned violent. 
  • Insurance Risks: From an insurance perspective, the biggest concern with aggressive behavior is the liability associated with bodily injury claims. if an officer is not trained to de-escalate a confrontational situation and the perpetrator turns to violence, a physical altercation can result. Similarly, if the officer is armed with a weapon (such as a firearm or baton) and pulls that weapon, these types of situations can quickly get out of control. If the perpetrator also has a weapon serious injury can occur, involving the perpetrator, security personnel and even innocent bystanders. In such situations, the claim might allege the officer used unnecessary force and could be sued for assault and battery. This is showcased in several recent lawsuits against the LA Dodgers for alleged assault, battery, false imprisonment, violation of civil rights and emotional distress by the team’s security force.
  • Reputational Damage: With increased use of and access to the internet over recent years, people can easily acquire video footage and photographs of altercations between security officers and perpetrators. Additionally, the internet has democratized access to editing software that allows situational embellishments, and even the creation of what are known as deep fake videos designed to alter the public’s perceptions of an issue or situation. This puts security firms and organizations at risk for reputational damage if footage, legitimate or otherwise, made it look like the security offer was the instigator in an act of violence. 

Finally, as in any state, California has specific rules, regulations and trainings that security officers need to be aware of. Security officers are required to physically witness an accused criminal conduct a misdemeanor before arresting them for said crime, leaving little room for error. There is also risk in not keeping up with such regulations. For instance, AB 229 is currently being debated as it seeks to change training requirements around use of force. If security professionals do not follow rules and regulations or keep up with important changes, they put themselves and their organization in jeopardy of compromising safety that can result in damaging litigation and costly fees and fines by the state. 

Managing the Risks

The risks outlined above can damage a security firm’s reputation and financial situation. They can also compromise staff retention if employee safety is compromised. Here are some tips security firms can take to help mitigate risks involved with aggressive behavior. 

  • Utilize de-escalation training: The most important tool in any security officer’s arsenal is de-escalation training. Experts can counsel security professionals on how to use proper body language, redirect or remove people from a situation, show empathy and more. Security firms should consider having such specialists work with their employees regularly to train new officers and review de-escalation tactics with seasoned officers. 
  • Be strategic about firearm usage: Before arming officers, security firms should discuss the implications of carrying firearms or other weapons. While security officers can carry firearms in California, it is only when they are on the job. If an officer were to use their weapon while off duty the security firm would be at risk for litigation. If arming officers, security firms should thoroughly screen all employees with background checks and psychological evaluations. Organizations should also consider utilizing firearm training, in addition to de-escalation training, to minimize misuse. At Brownyard we strongly counsel our insureds to weigh the benefits and drawbacks of arming employees. 
  • Follow all rules and regulations: As laws and regulations change, it is important to have the proper training and avoid fines and litigation. Joining a state association, like CALSAGA, can help security firms stay current with changes and new rules that result from state legislation. 

There is no guarantee a situation will stay calm, even with proper protocols and de-escalation training. Having insurance coverage is important to protect a business and its employees from litigation and financial fallout. While having coverage is important, having the right coverage can mean the difference between success and ruin. For many insurance companies that don’t specialize in the security industry, a standard general liability policy will have restricted language limiting assault and battery coverage to “reasonable force” while firms that specialize in the security industry will broaden this language to “physical force” and while the difference is subtle it does make a significant difference when de-escalation steps do not work and your firm is faced with an assault and battery claim. 

The past two years have increased tensions among the public and security guards alike. Local officials, business owners and even taxpayers have called for more work by private security, and such firms have been asked to take on new, unique responsibilities. While there is risk involved, these responsibilities can become opportunities for security firms with the right training and insurance protection in place.

 

Tory Brownyard, CPCU, is president of Brownyard Group, an insurance program administrator with specialty programs for select industry groups. In addition to his responsibilities as president, he currently spearheads the Brownguard® security guard insurance program.

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Aley Moyer

The Californian 2022 Q2 – 3 STEPS TO COST-EFFECTIVELY STREAMLINE YOUR SECURITY GUARD MANAGEMENT PROCESS

3 STEPS TO COST-EFFECTIVELY STREAMLINE YOUR SECURITY GUARD MANAGEMENT PROCESS

Tony Unfried, CSA360

Are you looking to improve your security guard management processes? Adding a security management software system is key. With all the options out there, finding a budget-friendly system that effectively manages your team can feel like a daunting task. But there is an option that can easily meet both goals. A customizable security guard software system is a game changer for security teams of all sizes. 

The benefits of implementing a customizable security guard management system are vast. But most importantly, it puts the control in your hands. A customizable system means: 

You can pick and choose which modules you need most. Many security guard management systems require you to buy every tool and feature, which significantly drives up costs. But a customizable system means you can choose which tools, features, and modules are best for your team.

A custom system is budget-friendly. A customizable security software system means you only pay for the modules you want. This makes it much simpler to stay within your budget. 

You can plan for future growth. A customizable system allows your team to grow with the software. The modules you decide are unnecessary today may change in the future. Simply add more modules and tools as your needs change. 

Ready to see how security guard management software can modernize your security management processes? 

Here are 3 Steps to Cost-Effectively Streamline Your Security Management System

Step 1. Decide Which Software Features Are Most Important for Your Security Team

Your security guards need modern, innovative, and user-friendly tools available to help them do their best work. A security software system is the ideal way to do this. Not only does security software reduce challenges for security teams, but the modules and features also improve processes at an affordable cost. 

Some security guard management software features and tools to consider include: 

  • Cloud access. Cloud access eliminates location hassles for your security team. This software feature allows you to log into the software anywhere, from any device. 
  • Technical support. Technical support means a highly-trained technical support person is only a phone call, email, or web ticket away. 
  • Customizable modules. This is a huge perk for cost-conscious security teams. Customizable modules allow you to only pay for the modules, workflows, and documentations tools you want.

Step 2. Customize Your Security Software Solution

Customizing your security guard management system gives you total control over everything in your software, from workforce management to incident reporting. And remember, you can further customize your software to fit your needs as your security team continues to grow. 

Some security software modules to consider include: 

  • Live dashboards and widgets. Interactive live dashboards deliver the real-time information you need, including incident locations and issues, news and weather, guard tour and facility maps, and more. All can be customized and organized for your unique team. 
  • Automatic connection to dispatch. Forget scrambling for a phone or a radio during a security breach. An automatic connection to dispatch gets backup to your guards quickly. 
  • Customizable incident reports. Toss those antiquated reporting templates. Customizable summary and incident reporting streamlines reporting processes and resolves issues quickly. 
  • Guard tour management. GPS locations and mobile QR technology make tracking and monitoring guard tours easy, even with a smaller security guard team. 
  • Txt Commander. Utilizing a unique phone number, this security software module allows clients, guests and staff to text questions and concerns to your security team. 
  • Automated visitor management. With smart check-in capabilities, pre-registration tools, electronic notifications, and facial recognition tools, automated visitor management is a must-have for security teams.  
  • Workforce management with HR commander. Say goodbye to the old way of scheduling. Security guard scheduling software gives managers a clear view of the upcoming schedule, requested PTO, potential overtime, and any staffing gaps. 
  • Digitized forms. This security guard software feature allows you to take standard business forms and digitize them, streamlining filing and communication all in one tool.  

Step 3. Choose the Right Security Software Partner 

There are many different security software options out there. But careful research is needed before making a final decision. The bottom line is that you need a security software partner that can provide an innovative security solution that fits your team and budget. A customized software solution is by far the most affordable option. Choosing what modules and tools you need puts you in control of your team and budget.

 

Tony Unfried, CEO of CSA360, holds a master’s degree in Public Affairs and Criminal Justice from Indiana University, where he graduated with honors. While enrolled in his master’s program, Tony worked for The TJX Companies, Inc., leading the region in loss prevention and moving the company toward technology use in Security. Tony went on to join the most significant security company in Indiana, managing more than 500 employees and 50 sites, including the Indiana Convention Center, Bankers Life Fieldhouse, and Ruoff Home Mortgage Music Center. Seeing a noticeable gap in technology use in the physical security sector, Tony created his first security software application, launched at the Super Bowl in 2012, and recognized twice for Excellence in Mobile Technology by Techpoint. Tony has also spoken on Tech in Physical Security on panels with ASIS and IAVM.

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Aley Moyer

The Californian 2022 Q2 – WORKERS COMPENSATION AUDITS – BE PREPARED!

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WORKERS COMPENSATION AUDITS – BE PREPARED!

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

Hope everyone is doing well and getting out to enjoy more activities outdoors!

Over the past 6 to 12 months, we have been receiving more calls from employers (PPOs) than ever before regarding Workers Compensation Audits. Their concern is that some auditors are requesting more information than they have in previous years. The reasoning behind the auditor’s request for additional information is the result of Assembly Bill 5 (AB-5). This is the radical change in the definition of Independent Contractor status in California. And, as a result, Workers Compensation auditors are requesting additional information to obtain verification that employers are classifying their workers correctly and collecting the appropriate premiums.

AB-5 implemented the ABC Test and put the responsibility on the employers to determine the status of their workers. In order to hire and classify a worker as an independent contractor, the employer must demonstrate that all 3 of the independent contractor requirements are satisfied. These 3 requirements include the following:

  1. The worker is free from control and direction in the performance of services; and
  2. The worker is performing work outside of the usual course of the business of the hiring company; and
  3. The worker is customarily engaged in an independently established trade, occupation, or business.

Even before the implementation of AB-5, a Guard carded security worker is not allowed to work as an independent contractor.

Workers Compensation auditors are now requesting financials in conjunction with the usual 941 quarterly payroll reports and other documents to determine if payments have been made to independent contractors. Per the terms and conditions of the Workers Compensation policy, audits are mandatory and in Part 5 G-Audits; auditors are able to request the following: “You (policyholder) will let us examine and audit your records that relate to this policy. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during business regular business hours during the policy period and within three years after the policy period ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision.” 

Since AB-5 was signed into law in 2019, Workers Compensation policies expiring in 2021 and going forward are being affected by the new legislation.

Please be prepared to address the request from the auditors and provide the following documents:

  • Workers Compensation reports and/or Payroll Journals and/or Payroll Summaries
  • Federal (941) and State (SUI) quarterly tax returns that correspond with your policy period
  • List of Executive Officers, Owners or Partners (Ownership %, Amount Paid, Job Duties and Titles)
  • List of employees that have been reported in Clerical (8810) and/or Outside Sales (8742)
  • Access to General Ledger and Cash Disbursements Records
  • For any subcontract, please have certificates of insurance available for review along with the amount paid and their job duties*

*It is very important to request insurance certificates from all subcontractors that you hire, or the cost of the subcontractors you hire will be included in your final premium calculation.

Auditors are being required to request this information. Hopefully now you will have a better understanding of why it is being requested.

Thanks 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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