Aley Moyer

The Californian 2021 Q4 – LOOKING FORWARD: WHAT’S DRIVING THE HARD MARKET INTO 2022

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LOOKING FORWARD: WHAT’S DRIVING THE HARD MARKET INTO 2022

Tory Brownyard, Brownyard Group

The insurance industry is now experiencing a hard market that experts predict will continue well into 2022. In practical terms, this means security firms, among other businesses and industries, will continue to see rising insurance premiums and may have difficulty obtaining coverage. 

A range of factors have contributed to the hardening insurance market. For security firms planning for the year ahead, understanding the drivers and knowing the risks that concern insurers may help soften the blow and provide better coverage options in the shifting economy. 

What’s driving the hard market 

In a hard market, insurance rates rise as insurers become more risk averse. Some insurers institute stricter underwriting parameters, while others may leave certain markets entirely. An example of this can be found in California where, years ago, many insurers reduced the amount of earthquake coverage they wrote while others stopped providing earthquake insurance entirely. 

For security firms in the U.S., the pandemic, economic uncertainty, rising crime rates and civil unrest in 2020 and 2021 all contributed to the hardening of the security insurance market. One of the primary drivers is large settlements awarded against guard firms. Such settlements, coupled with the risk of active shooter claims, are increasing insurance rates for security firms across the board. 

The security industry saw a respite from active shooter situations throughout 2020 and 2021 due to nationwide lockdowns. However, as lockdowns ended, active shooter concerns began to rise again. For instance, a workplace shooting at a Northern California rail yard in May marked the third such incident in less than two months. In many of these situations, security professionals are often the first line of defense. As such, they face considerable liability.

Another factor driving increased insurance premiums for guard firms is the ongoing trend of asking guards to perform work that is not only outside of their regular duties, but also exposes them to increased risk. For years security guards have been asked to provide additional services such as hospital patient transfer and even janitorial services. The pandemic exacerbated this trend as guards found themselves performing temperature, mask, and vaccination checks. In places such as Los Angeles County, where vaccine mandates are strongly enforced, guards will likely continue to be asked to provide additional services for the foreseeable future. 

If these services are not included in a security firm’s contract and the guard, or those involved with the guard’s actions, are in any way harmed, lack of insurance coverage for those services could expose the firm to considerable liability, as some insurance policies will exclude operations not disclosed to the insurance company.

Additional factors contributing to the hard market include a global increase in the cost of doing business and late claims reporting. The later a claim is reported, the more time sensitive it becomes and the more costly it is to settle. 

Choosing clients carefully

One of the biggest concerns for insurers when it comes to underwriting the security industry are the types of clients taken on by the firm. Security firms that take on clients considered high-risk are seen as having an increased exposure. Clients that fall into the high-risk category are typically those with more public exposure, including sport and concerts venues, shopping malls, and clients that are prone to criminal activity, such as certain medical dispensaries, subsidized housing and payday lenders. 

In addition to paying higher insurance rates, security firms that cater to high-risk clientele might also find it more difficult to get coverage. Some markets are also reducing coverage and introducing exclusions for certain client types such as low-income housing, special events or places serving liquor. 

While the hard market presents challenges to finding affordable and consistent insurance coverage, security firms can take steps to lower their risk exposure. Doing so can contribute to either better costs or access to limited coverage.

What you can do to soften the blow 

Poor contractual language can open the door to security firms assuming responsibility — and potential liability — for actions over which they have no control.  Reviewing contracts to ensure they are clear and transparent can help firms ensure they only accept liability for their own wrongdoing or negligence. Security firms should provide clients with contract language that has been both drafted and approved by the firm’s attorney, as well as reviewed by their insurance provider. Doing so can limit liability when a claim is made and help control the cost of those claims, thus making those security firms more appealing to insurers. 

Another way security firms can reduce the impact of a hard market is by reporting incidents as soon as they happen, even if the security officer is not considered responsible for the incident in question. Through timely reporting, security firms can provide the insurance company with the necessary information to get ahead of the claim and lessen the potential liability from long-tail claims (those that typically carry a long settlement period, high settlement amounts and a lengthy court case) and put themselves in a more defensible position. 

Finally, serving clients with lower risk profiles, such as office buildings, government contracts and industrial clients will lower a security firm’s risk profile. In most cases, insurers view such low risk more favorably because they tend to have a better loss experience. 

As the economy shifts and the need for private security expands, it is more important than ever for security firms to better understand and mitigate liability risks where they can. To accomplish this goal, security firms should work with their insurance partner to better understand their coverage and their potential exposure. This can find greater stability during uncertain times. 

About Tory Brownyard

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 2021 Q4 – HIRING INTO 2022: HOW TO GET THE RIGHT OFFICERS IN A TOUGH MARKET

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HIRING INTO 2022: HOW TO GET THE RIGHT OFFICERS IN A TOUGH MARKET

Jeff Davis, TEAM Software, CALSAGA Network Partner

As a security contractor, you’re well aware the current labor market is pretty crazy. You’ve got a lot stacked against you, and you’re not alone. National applicant trends across industries aren’t keeping up with those of hiring. That’s a problem for your hiring efforts. So, how do you attract applicants to your open jobs?  

First things first. 

Promote your jobs. Due to the lack of job seekers, employers have sponsored more job listings on job boards, leading to an all-out bidding war. With placements coming at a premium, companies have had to aggressively increase their job board spending budget to remain visible. Before you start throwing money around, though, consider your options. 

Diversify your applicant search. One source of job postings may garner lots of applicant volume, but with low quality. This means you may end up with candidates in your hiring funnel who have little interest in being there or who aren’t qualified. Or, the opposite may be true. A job board could only generate a sliver of applicant volume, but with applicants who are highly qualified with long-term retention potential at your company. Evaluate what your KPIs are in the hiring process and parcel out your advertising process accordingly. Then make postings on job boards based on those KPI goals. 

Next up, marketing. 

One of the best ways to improve your candidate quality is by improving your job listing. If the listing is unclear, people won’t apply. If it is misrepresentative of work tasks, you could have officers apply, begin work, then decide the job isn’t right for them and turn over quickly. Speak to what’s unique about your company, what might make it a good fit for the right candidates, and why people should be excited to join your team. Highlight benefits, even if you can’t afford to pay rates as high as some of your competitors. Unique benefits could attract candidates who might otherwise skip based on wage criteria alone. Make each listing easy to read and quick to process and use social media to increase job visibility. 

Look beyond the obvious. 

The truth is, COVID-19 has changed the hiring landscape. Even if changes aren’t permanent, it’s possible we could see continued impact on when and how applicants return to the hiring market. Even as applicants do return, there could be a shift in who is coming back to what jobs. As a result, you may need to rethink the type of candidate you’re trying to attract, and how you move them through your hiring process. Make it speedy. Quick apply tools and ATS systems with data capture help gather applicant information, meaning you have a larger pool of candidates to draw from, even if they aren’t able to complete an application in full. Move even quicker by keying in on what really matters to your open jobs and focusing on collecting secondary information, like historical job information past a few years ago. 

Whatever you do, don’t ghost. 

You know how hard it is to source and hire qualified applicants to join your team. It’s a whole other challenge to actually convert a new-hire into a member of your security workforce who stays on past sixty days. It’s not uncommon to hire a new employee, then have that employee “ghost” you, or never show up, before day one. 

Knowing this is a challenge for your security business, it’s imperative that you as the hiring agent also doesn’t ghost your potential employees, either. Don’t leave applicants in the hiring funnel too long. Don’t ignore potential candidates, or waste time holding out on an offer. While you still want to find a candidate who is a good fit, gone are the days that afforded you time to be super selective in your hiring tactics — at least for now. If you don’t move quickly, your competitors will. 

Keep these “get” strategies in mind as you enter into 2022. It’s likely the hiring market will continue to keep us on our toes as current challenges evolve, but that doesn’t mean you can’t be prepared. And, don’t forget to focus on your retention efforts, too. Once you have the right officer on your payroll, you want to do everything you can to keep them. 

Jeff Davis was president of Kwantek, a recruiting and onboarding software provider acquired by TEAM Software, the leading provider of integrated financial, operations and workforce management software for cleaning and security contractors, in 2020. Since joining TEAM, Jeff is the VP of Strategic Growth North America, acting as a subject matter expert and thought leader for TEAM in the security and cleaning industries and assisting with global sales and marketing initiatives. For the last 20 years, Jeff has focused on technology, working in sales and marketing to executive leadership, with four years specializing in human resources technology. He has an MBA focusing on Information Systems from Tennessee Tech and a Bachelor’s degree in Marketing from the University of Louisville.

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Aley Moyer

The Californian 2021 Q4 – SOLVING THE PROFITABILITY PROBLEM WITH JOB COSTING

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SOLVING THE PROFITABILITY PROBLEM WITH JOB COSTING

Brandy Tomasek, TEAM Software, Network Partner

There’s no doubt you’ve heard something described as the “meat and potatoes” before. The saying refers to the most basic or fundamental aspects of something. For your security company, the meat and potatoes of your business are your jobs. But keeping your security jobs profitable is a challenge. Especially, when labor and overhead costs are on the rise due to added costs of the pandemic.

The challenge: staying profitable when you’re up against tight margins. 

In an industry where profit margins are already thin, you don’t have a lot of wiggle room to dip into your profits to offset new and increased costs. So, it’s especially important to maintain a clear and accurate picture of your profitability at all times. It’s likely you’re managing your business to some degree with technology. But, have you factored in job costing? If you’re not actively allocating costs down the job level, you’re missing the “meat and potatoes” of your profitability opportunities. 

It should be a given that if a particular revenue or expense exists in accordance with a contract, then it should be included in your job costing. But the real challenge is getting accurate numbers and recording them down to the job level. Typically, costs you should be allocating per job include labor costs, payroll taxes, workers compensation, general liability insurance, umbrella insurance, supplies, materials, fuel, vehicles and more.

The solution: gaining visibility into profits at the job level. 

Job costing strategies aren’t one-size-fits all. To maximize your competitive advantage, security companies should be leveraging job costing opportunities that look at costs in detail at the job level. Oftentimes, it can look like a job is profitable when seen from the 1,000-foot view. But when you dig into some of the expenses coded to overhead jobs, you find some of those larger, true cost overhead expenses are what make up a good chunk of costs at the job level, too. 

For example, worker’s compensation typically isn’t expensed down to the job level because it’s hard to manage. Depending on the specific services you provide, worker’s compensation could be more costly than specific payroll taxes. So, if you aren’t accounting a portion of worker’s compensation expenses as a cost per job, you aren’t getting an accurate picture at what it took from your expense budget to service that contract.

As a security industry leader, it’s important to properly allocate your true job costs. Here are some tips to keep in mind when exploring job costing opportunities: 

  1. Make sure you have a way for every financial transaction processed to include a job number. Including everything from payroll, to accounts receivable, accounts payable and adjusted journal entries — no detail is too small. 
  2. Look for additional 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. 
  3. Establish review processes to compare data collected to budgets for an accurate gauge of profitability. 

Once you complete these tasks, you should be holding on to some solid, irrefutable data with insights into your true job costs. And as you evaluate contracts or bid for future work, you can use this as solid testimony backing up any negotiations or changes in SLAs. And, keep in mind job costing is an ongoing process. A job that’s profitable at one time could become unprofitable as SLAs change over time, or supply costs fluctuate. 

So, are you job costing? Are you doing so correctly? Do you analyze the data and put it in action? As a security company, you need to be asking yourself these important meat and potato questions to know whether you have a clear view of your profitability.

 

Brandy Tomasek joined TEAM Software in 2016. She’s a part of the Professional Services team, working as a Sr. Business Consultant. Prior to joining TEAM, 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 management and leadership, to training and accounting. In her free time, Brandy enjoys spending time with her family, training their puppy and DIY everything.

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Aley Moyer

The Californian 2021 Q4 – STRATEGIES TO REDUCE THE RISK OF WORKPLACE VIOLENCE

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STRATEGIES TO REDUCE THE RISK OF WORKPLACE VIOLENCE

Debbie Howlett, TrackTik, Network Partner

Since the start of the pandemic in March 2020, many previously low-risk workplaces are now at a higher risk for workplace violence. Many people frustrated by mask mandates, social distancing restrictions, and endless line-ups have resulted in a population with hair-trigger tempers. Some workplaces are recognized to be at significantly greater risk than others, like healthcare facilities. An emergency room in San Leandro, California, recently went into lockdown when a visitor, frustrated by Covid-19 restrictions, threatened to bring a gun into the hospital. 

However, workplace violence in healthcare was already on the rise pre-pandemic. The U.S. Department of Labor Statistics reports that in 2019, 47% of emergency department physicians reported being physically assaulted during work, and 71% of nurses reported experiencing sexual harassment at the hands of patients. This year, according to the National Nurses Union (NNU), a recent nationwide survey of more than 5,000 registered nurses, 31% of hospital RNs said that they faced a small or significant increase in workplace violence, up from 22 percent since March 2021.

An unfortunate silver lining to the pandemic has allowed hospitals to review their safety protocols. Across the U.S., hospitals and other facilities have installed more security cameras and video surveillance, limited entry points to monitor visitors more closely, and hired additional security officers. They have also provided de-escalating training, equipped staff with Bluetooth-enabled panic buttons, and in some cases, brought in K9 patrols. 

Security Officers at Risk

At present, the California Occupational Safety and Health Administration (Cal/OSHA) only has rules that regulate workplace violence in the healthcare industry. Still, there are no regulations covering workplace violence in other sectors. The Cal/OSHA Guidelines for Workplace Security have been in circulation since March 1995, so workplace violence has been a concern for a long time in California. The guidelines include specific factors that may put employers at a higher risk for violence, many of which are characteristic of the role security officers play in the workplace, such as:

  • Lone workers
  • Security officers transporting money between financial institutions
  • Armed security officers at cannabis dispensaries and plants
  • Safety ambassadors at healthcare facilities
  • Public safety officers in communities and cities
  • Public-facing security officers enforcing mask mandates and social distancing rules

Identifying Workplace Security Issues 

Many workplaces are at risk for workplace violence, but specific workplaces are significantly more at risk than others. Therefore, every employer should perform an initial assessment to identify workplace security issues. The security assessment should begin with a physical tour of the workplace in question, a review of security procedures already in place to identify any potential vulnerabilities. 

As you tour the workplace, consider the following ten questions: 

  • Where could someone easily access the building? 
  • Are potential entrances secured? 
  • Is there any form of access control upon entering the building? Is identification required? 
  • What is the procedure for visitors to the building? 
  • Have potential escape routes been explored in the event of a threat? 
  • Is the building a shared space? Do other tenants share your security concerns? 
  • Are there blind corners, hedges, or unlit areas where someone might hide? 
  • Are all the gates and fences surrounding the building secure with no gaps? 
  • Is the parking area well lit and maintained? 
  • Are doors left open and unlocked? 

Crafting the Workplace Security Plan

Once the workplace tour is complete, create a workplace security plan using the information you collected. Unfortunately, there is no one-size-fits-all security plan that employers can download and implement. Every employer needs a plan tailored to its particular environment and takes company culture, physical layout, resources, and management styles into account. 

Craft your security plan with the following suggestions in mind. 

Secure your workplace – Consider using physical barriers likes fences and gates, access control systems, door locks, and video surveillance. 

Create an access control plan – Use keys that cannot be replicated, electronic access cards, or a biometric option like fingerprint, palm print, or iris scanning. Provide badges for visitors. 

Contract security officers – Hire security officers to perform foot or mobile patrols and checkpoint tours. Officers can also assist with visitor screening and monitoring access control systems. 

Position security cameras where you need them – Security surveillance is key to monitoring who enters and exits the building at all times. 

Provide good lighting – Make sure that employee entrances and exits are located in well-lit areas, and interiors, corridors, stairwells, and parking lots are illuminated. 

Consider using alarms – Ensure that entrances and exits are equipped with alarm systems that warn employees if unauthorized individuals try to enter the building. 

Create a map of the building – Identify entrances and exits, stairwells, doors, and security cameras. It will help you determine where to deploy extra security, video surveillance, and extra lighting. 

Review and revise your security plan – The review should ensure that doors are closed or locked, the locks are working, and security officers properly screen visitors. 

Redesigning aspects of your workplace can reduce the likelihood of violence and keep your security officers and the people and facilities or institutions they protect secure. Consider revisiting your security plan today with some of these suggestions.

Debbie Howlett
TrackTik

Debbie is an experienced writer with a demonstrated history of working in the security industry. She is based in Montreal, Canada, with TrackTik—a dynamic and cutting-edge tech company that sells cloud-based security workforce management software.

debbie.howlett@tracktik.com
Twitter: @TrackTik 

 

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Kate

The Californian 2021 Q3 – IMPROVING CONTRACT MANAGEMENT FOR BETTER BUSINESS STRATEGY

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IMPROVING CONTRACT MANAGEMENT FOR BETTER BUSINESS STRATEGY

Brandy Tomasek, TEAM Software, CALSAGA Network Partner

 

As a leader of a security company, managing your contract updates can become an incredibly daunting task, especially given today’s ever-changing environment. Not only are customers requesting more from your business in terms of the services you provide, but you’re also being required to monitor your service delivery to meet new and specific compliance standards. As contract management becomes more complicated, you’re simultaneously being asked to provide more visibility to your customers through business data and proof of service — a process multiplied by each dispersed job site spelled out in your contract agreements. 

As contract management evolves, one thing is clear. Your business strategy needs to evolve as well, namely in finding a way to leverage your technology so it’s working for you, not against you. Managing a contract across multiple platforms — or worse, through only paper-and-pencil processes — is tricky, messy and ultimately a drain on your resources. Even with regular communication to and from the field, you’re more likely to end up with answers that don’t line up across systems, discrepancies in how information is processed and assigned, and a loss of customer business. It’s important to use technology specifically designed for the needs of the security industry to counteract these dangers and better manage your contracts. 

Trainings, Licensures and Breaks

With your contracts, it’s important to make sure you have officers with the correct qualifications fulfilling the requirements of any given job, and that you’re providing fair and equitable hours whenever possible. Employees need to be onboarded thoroughly and appropriately with ongoing training and licensure requirements accurately tracked, so when a job does require specific certifications, you can fill those service-level agreement needs appropriately. When your officers are on duty, a holistic workforce management solution can monitor time worked against necessary compliance regulations, ensuring you accurately track time, including meal or rest breaks. This is especially important for instances when meal or rest breaks could theoretically be attributed to a different week due to how shift schedules fall, mistakenly resulting in more overtime expenses on your payroll. Without a software solution working to provide accurately, timely data to produce outputs, you’re relying on human subjectivity to manage minute details where error can result in headaches and liabilities for your company to handle down the road.  

Scheduling and Your Bottom Line

As a service contractor, labor costs are one of the biggest expenses narrowing your profit margins. Seemingly harmless scheduling gaffes, like an officer coming in early or staying late, can quickly add up in expenses your company is on the hook for but that you ultimately can’t bill to your customer. By eliminating manual processes from the scheduling equation, you can more accurately manage shift punches and rule out any de minimis time by setting up configurable default time and attendance settings. From a contract standpoint, this helps with cost attribution, while minimizing any back-office reconciliation work before payroll is due. Plus, a tool that monitors open posts, offers positions to employees and schedules based on compliance requirements (guard licensing, driver’s license, weapons permit, CPR training, etc.) ensures you’re still able to identify gaps in coverage, prevent pre-scheduled overtime and receive notifications if an officer doesn’t clock in for a shift. 

Communicating to Field-Based Officers

Manual back-and-forth communications can get the job done, but a software solution that provides communication to and from the field helps provide visibility to your security officers, supervisors and management. System notifications help identify things like gaps in coverage for contracts and better manage compliance requirements via messaging solutions. Plus, the ability to notify employees of open posts via push notification and SMS texting helps shorten the lead time of filling gaps in coverage and ensuring contract management. By tracking all communications within one system, executives have peace of mind — and a paper trail to refer to when reviewing contract fulfillment or queries from customers. 

The possibilities of software built specifically for the needs of the security industry are endless. Take advantage of tools that work for you to help manage your contracts. 

 

Brandy Tomasek joined TEAM Software in 2016. She’s a part of the Professional Services team, working as a Sr. Business Consultant. Prior to joining TEAM, 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 management and leadership, to training and accounting. In her free time, Brandy enjoys spending time with her family, training their puppy and DIY everything.

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Kate

The Californian 2021 Q3 – HIRING PROBLEMS & YOUR SOLUTIONS

HIRING PROBLEMS & YOUR SOLUTIONS

Armand Adkins, Guardslink

One of the most recurring problems in the security industry is finding and hiring qualified security officers.  If there was a show of hands, I don’t think many members of CALSAGA would say hiring, when and how they want, is easy.  It just isn’t. Building the team of security officers your company needs will require creativity as well as a rigorous process to search and employ the right people to service your existing clients and move your company forward.

We need to recognize that finding the right candidates is even harder for security companies than in other industries as those we select are expected to protect lives and properties. Qualities such as experience, fitness, and appropriate training are only a few of the things security companies look for from their pool of candidates. While there are endless in-house problems that get in the way of an effective hiring process (administrative time commitment, costs, etc.), the good news is, as hard as these problems might seem, there are practical ways to effectively tackle them.

Shortage of Candidates

Always surprising – even though the physical security industry is a long standing and established sector of our economy, the Service Employees International Union still records an annual turnover rate of 100%-300% for security officers. This means that security officers leave a job within 1 year and sometimes within their first four months in a new company. This makes the market very competitive for companies looking to hire security officers, with the demand typically higher than the available talents.

There have historically been three proven ways to get candidates, and now there’s a fourth new approach.

 

Method One: Get your job openings in front of as many potential candidates as possible to raise the visibility of your hiring needs.

This can take the form of job boards such as Indeed, Ziprecruiter, etc that will post your positions on their websites for a fee since they are able to draw a significant number of job seekers looking for work.  The second, is a job ad in a physical or online circulars.  Examples of these sorts of circulars are Craigslist or PennySaver USA.  With job boards and circulars, you cast the net as wide as possible but you can never be sure of the response rate.

If your company takes the traditional route of job boards / employment ads, do you have a firm sense of the amount of money involved?  Are you factoring the actual costs of posting, boosting, as well as the labor cost of resume reviewing, candidate communications, interviews, negotiation, and sometimes the added need to train, live scan coordinate and apply for a guard card license. All steps involve time, which means money.

 

Method Two:  Those already in your circle of influence.  This method includes adding career / job openings language or a dedicated page on your website for those already familiar with your company and coming to your site.  In addition to just job openings, you may want to consider adding testimonials / testimonial videos from your existing security officers to share their positive views of working for your company. Your sphere of influence also includes asking your existing employees for referrals out of the goodness of their hearts or for an incentive.  This is a solid approach to take with the exception that it limits the reach of your potential pool.

While this technique may seem like a bargain, you will most likely face actual costs in terms of referral bonuses as well as the unseen cost of limiting your reach to find qualified candidates if you are looking to grow your business.

 

Method Three: Traditional recruiters. Going with a standard recruiting firm is definitely an option if your company is in an immediate need for a position to be filled and Method One and Method Two have not panned out.

Using traditional recruiters really should be seen as a last resort as they greatly increase your cost to hire in terms of potentially upfront and certainly hourly rate premiums that you would be contractually obligated for.  However, in a pitch, they exist.

 

New Method Four: There exists a brand new model for flat fee placement providers.  GuardsLink is an example of one such service provider that has recently expanded its offering beyond online training and tracking to include hiring assistance.  Qualified candidates that already have their unarmed or armed guard licenses can be presented to your company for interviews, and if you hire one or more of the candidates, you pay a relatively small flat fee per hire.

There is a cost per hire, but it is simple and transparent – no unknown return for money spent like in Method One, no limitation of your network of people familiar with your employees and company like in Method Two, and no expensive hourly rate premium like with traditional recruiters.  However, your company would need to be willing to try new business providers, and not all companies are open to expanding options from what they already do.

Each of these four methods can find you candidates, it is simply up to you if you choose one or more of the methods to implement in order to improve your odds.

Making the offer

It is one thing to have found the perfect fit for the job, it is a different task to get to a mutually agreeable “yes,” resulting in potential time wasted on negotiations.

To solve this specific hiring problem, the wage range should be included in your Employment Postings. This will streamline the candidate pool applying to fit your budget as those that seek different rates of pay will self-select and not apply.  This is a huge time saving as you and your staff won’t need to spend your time reviewing resumes, contacting to coordinate interviews, interviewing and discussing the position with someone who will not be accepting the job for monetary reasons.

A completely different approach that some employers have been known to use is to let each candidate freely lead the negotiation phase. This will give you an insight into each candidate’s expectations. If there are unrealistic wage expectations for the position, this may serve as a warning flag that despite ultimately accepting the position, this new hire may become part of the turnover statistic and you enter into the employment relationship with eyes open.

Not enough time to make decisions

No good hiring process is done in a rush. Adequate time is needed. To tackle the problem of time, ensure that you have a good work policy that allows your staff to inform you ahead of resignation. This will give those involved in searching for new hires ample time to run the hiring process. In urgent situations, even a short notice or resignation will give you the breathing room to temporarily cover work shifts with your existing employees.

Side note, the company culture that encourages some amount of resignation notice is a self-fulfilling prophecy.  If you honor resignation periods, employees are more likely to give you sufficient resignation notice.  However, if you accelerate the last day of a security officer who gives advance notice of resignation, you are setting an unspoken company standard and few employees in the future will provide the same resignation notice for fear of impacting their final checks.  As CALSAGA is made up of mainly fellow employers, it is a hard decision whether to honor or not honor the resignation notice period, and no one can tell you the right balance, but you.

 

Also on the subject of time to vet candidates, it may make sense to have a process in place to be continuously searching for new employees, whether through an evergreen job posting, a referral bonus program, or an ongoing relationship with a flat fee placement provider.  If you are regularly searching, the odds are in your company’s favor of finding a qualified security officer sooner rather than later.

 

Making the final decision is hard

For security companies with great visibility, an extensive job posting strategy or a flat fee placement structure with a trusted organization like GuardsLink, the problem might come down to making the final decision to pick the perfect candidate.

Tools may make the difference in viewing candidates as objectively as possible to help make the right choice in a way that can be referred to later (for runner-up candidates if your top pick doesn’t join your team), and provide a process to try to eliminate any unconscious bias or hiring disorganization.

A classic tool that most are familiar with and capable of using are our old friends, Microsoft Excel or Google Sheets.  A well thought through spreadsheet, with columns that help sort the pros and cons of each candidate with added notes can give you the one page comparison needed to drill down on a ranking order of  candidates you wish to make an offer to and hire.

In addition to spreadsheets, you can also reach final decisions with the use of paid and free online tools that sort and select candidates. These are easy-to-use soft automation tools that work by helping companies to sort applications according to their preferences and instructions. Most human resource platforms will contain or be able to connect to such tools.

 

Conclusion

At the end of the day, we can all agree that there is no one silver bullet to solve all the problems and costs associated with the hiring process.

The goal of this article is to shake your organization out of its complacency and share the hurdles, as well as opportunities available to your company to try new approaches for finding your next hire.  If there is one or more of the four methods discussed above that your company has not already explored, give them a try – whether it’s employee testimonials on your website, new places to post jobs, or reaching out to a flat fee placement service like GuardsLink. The hiring of security officers is difficult enough without limiting your avenue of potential candidates.  Remember, without a pipeline of employees, you not only risk not being able to service the clients you already have but artificially limit your company’s ability to expand.

Much success, and good hiring!

 

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Kate

The Californian 2021 Q3 – LEGISLATIVE UPDATE

LEGISLATIVE UPDATE

Kate Wallace, CALSAGA Association Manager

As we reported to you earlier this year, Assemblymember Chris Holden introduced Assembly Bill 229 which would require the development of Use of Force curriculum for the private security industry. Among other topics the training would include active shooter situations; implicit and explicit bias and cultural competency; mental health and policies.

The CALSAGA Executive Committee along with our lobbyist Kelly Jensen have been working with Assemblymember Holden’s office, the Committee Consultant for the Senate Business, Professions and Economic Development Committee and Chief Andres of the Bureau of Security & Investigative Services on the text and ramifications of the bill. CALSAGA President David Chandler has testified before Assembly and Senate committees regarding the bill.

The current draft of the bill would remove Weapons of Mass Destruction from Powers to Arrest and replace it with Use of Force. Weapons of Mass Destruction will become an elective option.  It would require the initial guard card training to be administered in a traditional classroom setting with a physical instructor utilizing “hands-on training.” Originally the legislation would have increased the initial training requirement from 8 hours to 10 hours. CALSAGA addressed this with Assemblymember Holden and are glad to report that he is agreeable to keeping the initial training as an 8 hour course.

Proposed legislation would also increase requirements for reporting altercations. Currently all physical interactions involving a security officer must be reported to the BSIS. If passed, this legislation would require that any altercation be reported to the BSIS. This would include verbal altercations and unwanted touches such as common instances of gently touching an individual’s shoulder to guide them out of a building, officers restraining someone in a hospital setting, etc.

Last Tuesday David Chandler testified before the Senate Business, Professions and Economic Development Committee in opposition to the bill as currently written. There are portions of the legislation to which the association objects particularly the barrier to employment created by the increased training requirements and the lack of provisions for administering training in the event of a future pandemic.

During committee session this week, Assemblymember Holden stated, “I have committed to CALSAGA that I will work with them to find an appropriate balance between traditional classroom and their suggestion of web-based platform training.”

CALSAGA will continue to keep you updated regarding AB 229. Should this legislation pass, new requirements would not take effect until 2022.

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Aley Moyer

The Californian 2021 Q3 – HIRING CHALLENGES CONTINUE

HIRING CHALLENGES CONTINUE

Jeff Davis, TEAM Software, CALSAGA Network Partner

Every market seems to be haywire right now. Low interest rates, high building costs and excess disposable income has led to unprecedented demand and price increases in the housing market. The stock market has also been a rocket since hitting lows at the beginning of the pandemic. So, why should we expect anything less from the security labor market?  

Let’s go ahead and address the 800-pound gorilla in the room: security firms are not getting enough applicants. While pundits debate the reasons for the drop in applicants, we can assume the answer is likely due to multiple factors affecting job seekers. Before we look at the possible causes, let’s take a look at recent trends in hiring and applicants. 

Hiring Trends

Hiring has steadily grown week-by-week in 2021, with the most new hires coming in late June. Overall, hiring for April 2021 was up 62% year over year. Demand is strong for contract security services. As the world reopens, it makes sense that demand for security services would increase.  

Applicant Volume

Applicant volume has not followed the same path as hiring. Where hiring has steadily built each week, applicant volume started high, dipped in the spring, and has somewhat leveled off to first quarter (2021) numbers. This presented a very challenging spring when trying to fill security positions, as well as in other industries, as new applicants were hard to find. 

Key Factors

Steady hiring with lower and inconsistent applications makes for a difficult hiring environment. Recruiters are in a fight against the lingering effects of the pandemic, state and local policies, and outside industries to lure employees back. The most discussed (and politically polarizing) factors right now are unemployment benefits and specifically the additional $300 federal benefit. California is allowing the full benefit to be paid through September as reported by Zip Recruiter:  

“The maximum unemployment benefit available to individuals in California is $750 a week, or about $19 per hour, through September 6, 2021. After that, the maximum weekly benefit for individuals is $450 a week, or about $11 per hour.”

Using Indeed’s salary estimator tool, the average hourly base pay for a security guard in California is $15.98. Based on the numbers alone, luring guards on unemployment back in the workforce is difficult. Many states are offering bonuses for returning to work, but to date, California has not joined the trend.

Other factors such as child care and fear of COVID-19 variant strains are also keeping some at home, but the biggest trend may be a shift in the workforce itself. A recent ZipRecruiter survey found 70% of job seekers who last worked in the leisure and hospitality industry say they’re now looking for work in a different industry. This isn’t specific to contract security, but if the hospitality industry is having this type of movement, it’s logical to hypothesize much of the security employee base may be looking to switch industries as well.  

Moving Forward

One side effect to the labor market is classic supply and demand: rising job board advertising costs. Due to the lack of job seekers, employers have sponsored more job listings on job boards, leading to an all-out bidding war. Where organic (free) postings used to get visibility on the first page of a job board, they’re now buried on the third and fourth page behind the high volume of sponsored advertisements.  With placements coming at a premium, companies have had to aggressively increase their job board spending budget simply to remain visible. 

With rising labor costs, increased unbillable overtime and slimmer margins, how do we find employees to fill the demand? While there may not be a magic bullet, there are tactics you can implement.

  • First — build a solid employee referral program and actively promote it. Your best future employees are referred by current employees. 
  • Second — focus on retention of current employees. The cost to acquire and train a new employee is significant and refocusing those funds into retention may be valuable. 
  • Third — look to other industries. When unemployment was high, hiring could be selective and managers could pick and choose to only interview candidates with experience. Now may be the time to explore potential hires with different backgrounds. I hear the workers from the leisure and hospitality industry may be looking for a change.

TEAM Software is dedicated to ensuring our software solutions meet the ever-changing needs of our customers. We’re also continually working to bring you relevant content to help you manage your business better by taking advantage of programs like WOTC. While we’re committed to keeping you informed, it’s important to do your own research, and consult your own legal and tax advisors when necessary, too. For more information on the WOTC tax credit, visit the United States Department of Labor WOTC page.

Jeff Davis was president of Kwantek, a recruiting and onboarding software provider acquired by TEAM Software, the leading provider of integrated financial, operations and workforce management software for cleaning and security contractors, in 2020. Since joining TEAM, Jeff is the VP of Strategic Growth North America, acting as a subject matter expert and thought leader for TEAM in the security and cleaning industries and assisting with global sales and marketing initiatives. For the last 20 years, Jeff has focused on technology, working in sales and marketing to executive leadership, with four years specializing in human resources technology. He has an MBA focusing on Information Systems from Tennessee Tech and a Bachelor’s degree in Marketing from the University of Louisville.

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Aley Moyer

The Californian 2021 Q3 – THE STAFFING DROUGHT

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THE STAFFING DROUGHT

Tony Unfried, CSA360

We have a new drought among the security industry… It is a staffing drought. Finding new staff has been harder than ever. According to LinkedIn there are over 53,000 jobs available in the US. For various (some valid) reasons, not many people are eager to return to work. Lowering your turnover and improving retention is more important now than ever. Here is how you can help solve staffing gaps.

Art of Incentives
People are competitive by nature and nothing like a friendly competition to motivate your team. Using the art of incentives can be one of the best kept secret methods to encourage your team. This can be your secret weapon to keep your security team motivated. Perhaps finding a good scheduling software that can track this is a good idea.

Transparency
Having transparency within your staff is easier said than done. From knowing the availability of your staff to how they are performing can be difficult. It is a definite must. While having fun, positive incentives are great. It has been proven that people perform better when they know they are being watched and critiqued based on their work performance. Reward the employees who are always on time by giving them the better shifts or their preferred shift or the best positions. While you can keep track of this with a spreadsheet that can become a bit tedious, it is recommended you read into security software which can automate this process.

HR Software
It is nearly impossible to know everyone on your staff’s schedule. You’re only human after all. One thing recommended to help you be on top of your staff is investing in guard scheduling software. It can allow your employees to input their availability. Scheduling software can offer you valuable insights that will help you keep track of who is on time and who is making all the guard tour checkpoints. This can help increase employee transparency.

Keeping your staff engaged and motivated can be easier said than done but make sure you’re setting clear goals and expectations. Keeping things transparent within your staff. Once goals are met give a reward. This will help keep your security staff motivated and help solve staffing gaps.

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 2021 Q3 – CALIFORNIA SUPREME COURT RULES CALCULATION OF PREMIUM PAY MUST INCLUDE NON-DISCRETIONARY PAY

CALIFORNIA SUPREME COURT RULES CALCULATION OF PREMIUM PAY MUST INCLUDE NON-DISCRETIONARY PAY

Saba Zafar, Esq. and Jaimee K. Wellerstein, Esq. Bradley & Gmelich, CALSAGA Legal Advisor

On July 15, 2021, the California Supreme Court held that if an employer fails to provide a legally compliant meal period or rest break to an employee, the wage premium owed to the employee must be paid at the employee’s “regular rate of compensation,” which includes not just hourly wages but all nondiscretionary payments for work performed by the employee. The Court also held that its decision will be retroactive. 

The Case

Jessica Ferra worked as an hourly bartender for Loews Hollywood Hotel. She received hourly wages plus quarterly nondiscretionary incentive payments. If an hourly employee was not provided a compliant meal or rest break, Loews paid the employee an hour of pay at the employee’s base hourly rate. Loews argued this was the “regular rate of compensation” mandated by Labor Code section 226.7(c).

In 2015, Ferra filed a class action lawsuit, arguing that nondiscretionary incentive payments should be factored into the regular rate of compensation for purposes of meal and rest break premiums. The trial court and Court of Appeal agreed with Loews that the “regular rate of compensation” was not synonymous with the “regular rate of pay” used in Labor Code section 510(a) governing overtime. Ferra appealed to the Supreme Court, and the instant ruling followed.

The Supreme Court discussed the history and evolution of the wage orders as well as Labor Code section 226.7 extensively as the basis for its holding. The Court noted that neither the Labor Code nor Wage Order No. 5-2001 define the terms and the words could reasonably be construed to mean hourly wages or wages plus nondiscretionary payments as is the case under Labor Code section 510(a) for calculation over the regular rate of pay for purposes of overtime.

The Supreme Court also relied on the courts’ and DLSE’s understanding of two different terms, that “regular rate” under the Federal Labor Standards Act (“FLSA”) and “regular rate of pay” in Labor Code section 510 have the same meaning. “Regular rate” under the FLSA for purposes of overtime includes “all remuneration for employment paid to, or on behalf of the employee” including nondiscretionary payments. Thus using the word “compensation” in Labor Code section 226.7 as opposed to “pay” in Labor Code section 510 does not necessarily mean the terms have different meanings.

The Supreme Court also rejected several federal district court opinions holding that the regular rate of compensation only means an employee’s hourly rate. The Supreme Court observed that such an interpretation would put an employee who received only a piece rate or both a piece rate and an hourly rate of pay as compensation at a disadvantage as the nondiscretionary payments would not be counted towards calculating their premium pay.

Based on its analysis and legislative history, the Supreme Court held the phrase “regular rate of compensation” in section 226.7(c) has the same meaning as “regular rate of pay” in section 510(a) and encompasses not only hourly wages but all nondiscretionary payments for work performed by the employee.”

As the final blow to employers, the Supreme Court rejected Loew’s request to apply the decision prospectively. Thus, the decision will be applied retrospectively.

Employer Takeaway:

Employers should closely examine their policies and practices with regard to meal and rest periods. Employers must demonstrate constant vigilance in complying with California’s rigid wage and hour laws, including proper calculation and payment of the one-hour premium when violations do occur.

As the decision is retroactive, employers who have paid premium pay should analyze their calculations to ensure that it includes nondiscretionary pay.

If you have any questions about how this decision may impact your obligations, or need assistance with regards to calculating premium pay, please feel free to contact Bradley & Gmelich LLP. We are here to help.

 

Saba Zafar, Esq. is Special Counsel in Bradley & Gmelich LLP’s Employment Law Department. Saba has over a decade of experience as an attorney, primarily in employment law. Saba 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. 

Prior to joining the firm, Saba was a Senior Counsel providing advice and counsel to mid-sized to large businesses on employment law compliance and day-to-day employment issues, including implementing policies and procedures, employee classifications, employment separations, managing and disciplining employees, and COVID-19 rules and regulations. Saba also handled a wide variety of employment matters in state and federal court, including cases involving wrongful termination, discrimination, and wage related cases. 

In her spare time, Saba has volunteered as a Mediator for the Department of Consumer Affairs and the Orange County Human Resources Department. She was also a Volunteer Tutor for Schools on Wheels, tutoring elementary school students on skid row in Los Angeles. Prior to practicing law, Saba was a Judicial Extern for California Court of Appeal, Second Appellate District.  

In her free time, Saba enjoys embarking on culinary adventures and catching up on new television shows. szafar@bglawyers.com

Jaimee K. Wellerstein, Esq. is a Partner at Bradley & Gmelich LLP, and the Head of the firm’s Employment Department. Jaimee concentrates her practice in representing employers in all aspects of employment law, including defense of wage and hour class actions, PAGA claims, discrimination, retaliation, harassment, wrongful discharge, misclassification, and other employment related lawsuits. She also provides employment counseling and training in all of these areas. 

Jaimee routinely represents employers in federal and state courts and in arbitration proceedings throughout the state, as well as at administrative proceedings before the Equal Employment Opportunity Commission, the California Department of Labor Standards Enforcement, the United States Department of Labor, and other federal and state agencies.

Jaimee assists as a Legal Advisor to CALSAGA, and is a member of ASIS International. She is rated AV-Preeminent by Martindale-Hubbell, the highest peer rating available. jwellerstein@bglawyers.com.

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