21st Century Security Challenges vs. Antiquated Security Budgets.

A terrorist is bold and savvy enough to know that he may have a good chance of having a dangerous weapon go undetected at an airport security checkpoint. Why? Perhaps one reason may be that the terrorist may have watched and "studied" the "effectiveness" of average security personnel at metal detector checkpoints at airport terminals. In doing so, the terrorist might have discovered that the lack of thoroughness by the security staff could be an asset, and not a liability, to his mission. What the terrorist and general public may not know is that security personnel assigned to high-priority access control areas are too many times underpaid workers (possibly earning only minimum wage), with minimal skills, and lacking the required experience and expertise to properly carry out their duties.

Those same low wage private security officers at airports are, therefore, less-than-fully motivated to "give it their all" to a high-stress job that compensates them far less than workers in other less-demanding industries (such as food and retail concession stands found at airports, next door to security checkpoints.)

Unfortunately, too many times, the security story at airports is no different than the realities found in other settings such as office buildings where you may work; apartment complexes or gated communities where you might live; school campuses attended by your children; the shopping center or mall frequented by your family; an oil refinery near your neighborhood; and other commercial, industrial and residential sites that utilize private security contractors to protect property and provide public safety.

The unsettling reality of underpaid security personnel in public settings is directly related to the much-ignored reality of grossly under-budgeted security programs at those same facilities.

For too many years, (decades, to be more accurate) the need to address the realities of low wages in the private security industry - and their direct relation to budgets of properties serviced by private security providers - has been systematically sidestepped by property owners / managers and security contractors alike. Still, the demand for higher-skilled and well-compensated security personnel has continued to rise through the years without properly addressing the problem.

Contract values and security budgets have stayed at conservative dollar figures representative of the 1980s, and 1990s. In contrast, job market values, recruiting expenses, and the overall cost to do business as an employer in the private security industry has significantly risen to 21st century dollar levels.

Contractors in the private security industry are also challenged by low unemployment levels that create an applicant's job market. Therefore, employers must be prepared to offer highly competitive wages, benefits, and job security, in order to attract high-quality workers. The ability of private security firms, as employers, to offer competitive wages and benefits to their employees is directly related to their clients' security budgets.

Clearly, low contract values and the labor wages they directly support are dangerously out of balance. That imbalance is a disservice to property owners, private security contractors, but most of all, to the employees that need to be provided fair and equitable wages.

Last year, on November 02, 2000 the Los Angeles Times ran an article titled "Recruiters Who Fill Low-Skill Jobs Go Begging". The article addressed challenges faced by employers in a competitive job market with low unemployment levels. The Times noted that entry-level wages for food prepares, grocery store shelve stockers, retail store clerks, and amusement park ticket takers were at that time $7.21 to $11.00 per hour, plus benefits. A year later, unemployment levels are still at national lows and quality workers are still at prime demand:

On October 01, 2001, unionized trash collectors in Orange County began a strike to improve their hourly wage from the current level of $12.90 per hour (with benefits.) In terms of Los Angeles County, unionized janitorial workers earn $9.22 to $12.50 per hour, plus benefits. Unionized parking attendant wages range from $8.82 to $9.82, plus benefits (gratuities are not factored, and are above and beyond hourly wages.) Cleaning crews and parking service workers are provided superior wages to security personnel assigned to the same properties.

Grocery shelf stockers are reasonably paid at $11.00 per hour, plus benefits -- with low job expectations. However, typical security officers are expected to deter crime and vandalism, and provide public safety during any given workday. They are underpaid, over-stressed frontline asset protectors at lobbies and main gates of numerous high-value properties.

Current entry-level wages of unarmed/uniformed security officers assigned to typical service sites in commercial, industrial, or residential settings are as low as minimum wage ($6.25 hr.), to $8.00 per hour -- benefits are optional, depending on contract agreements between security contractors and their clients.

Unionizing the private security labor force may, or may not become a reality in the immediate future. However, if non-union wages continue to be at unreasonably low levels - as driven by security budgets at properties - other alternatives will certainly have a greater impact on property owners, their security budgets, and the overall bottom line at properties in the future.

Another way to view realities of current wages in the security industry, in relation to budgets at properties, is how property owners will hire highly-qualified and well-compensated property managers, building engineers and other vital management and technical personnel to operate their properties during regular working hours. Yet, on nights, weekends and holidays, the $7.00-an-hour security officer at the building is generally the only property representative that is present to immediately respond to incidents of fire, flood, injuries, and property damage.

In addition, there is an unrealistic demand put on security personnel to constantly deliver perfection level performance while provided minimum wage compensation. Typically, properties will budget adequate salaries for management and technical support services, yet the security budget is generally given less consideration and minimal funding -- even though it has a significant, major role in asset protection.

The security industry is challenged by low value contracts that demand a great deal in return from their conservative investment. When a security company is contracted by a property owner or manager, the hourly invoice rates of the service agreement (typically $11.00 to $15.00 per hour) are inadequate in their ability to fund fair and equitable labor wages; related payroll taxes and insurance; training; supervision; uniforms; vacation pay; sick pay; drug testing; background checks; turnover costs; insurance (general liability, workers compensation, employee bonding, and vehicle coverage); security equipment general supplies, etc...the list goes on!

Therefore, the security provider takes a loss on the initial stages of the contract and gambles on recovering losses through high volume, long-term business relationships with its clients. Still, that does not solve the problem brought on by anemic security budgets in terms of the pay rates they directly fund. The security contractor, as employer, has no choice but to maintain labor wages to conservative levels, and is rarely able to provide competitive benefit packages to its employees.

Perhaps the increased media attention focusing on low wages of security officers will give property owners and security contractors a stronger sense of urgency in addressing the subject. More emphasis may now be placed on saving property values and lives by doing the right thing for those underpaid workers that put their own life on the line each workday.

It is unfortunate that it took a national tragedy to expose what has always been known by property owners, property managers, and security contractors...security budgets are inadequate and behind the times in this modern age of sophisticated crime, vandalism, and terrorism.

The reality is that with government cutbacks on state, county and city police programs, property owners rely more and more on private security firms to protect their assets and personnel. As increased incidents and more security challenges present themselves at the doorstep of businesses throughout the nation, security budgets must also be increased and move with the times in to the 21st century.

David Bernal is Vice President of GHG Security & Investigations, Inc.