Keeping your guard up.

New York City property managers and residents sat up and took notice as year-end numbers indicated a 17 percent drop in the city's crime rate in 1995. These numbers were unprecedented, and while many factors account for them, the property management industry, as well as cooperative and condominium boards, deserve a share of the credit.

But after we all pat ourselves on the back, we need to continue to look at some facts which could affect the quality of protection in buildings.

Demographic Storm Predicted

Some experts, including the Bi-partisan Council on Crime in America, chaired by William Bennett and former Attorney General Griffin Bell, warn that the current decrease in crime is a lull before the explosion of a demographic storm. The Council maintains that a huge increase in the 14-to-17 year old male population will cause violent crime to "spiral" upward. "These kids," according to Charles W. Colson of the Prison Fellowship Ministries, "will be far more dangerous and violent than the generation before."

In the most recent SPS Security Advisory, SPS advises that property managers and beard members need to watch and collect data on demographics in their areas as part of an overall security program. A property manager or board member trying to choose the most effective security guard company needs to include any potential rise in crime in his or her strategic and tactical plans over the next five years.

Industry Growth

According to Merrill Lynch, the private security industry is expected to accelerate its rapid growth to an estimated rate of 15 percent annually. That means that there will be more security guard companies competing for the building manager's dollar. More companies will put added pressure on pricing, which means that in order to remain competitive, low-end security companies may cut back on vital services such as training and supervision.

However, when considering your security needs, you cannot underestimate the degree of value-added service and professionalism that mature contract guard companies offer. According to industry experts, such as Robert Hair of Hair Security Consultants Inc., crime rates go down in almost direct correlation to a guard company's emphasis on training, technology and superior supervision and management.

According to a recent study by Hair Security consultants, when a guard company invests in these areas, the investment comes back in less crime, tenant stability, enhanced public relations and ultimately, an increase in the perceived value of your property. In security operations where all supervision and training were rated high, the sites were found to have an increased atmosphere of public safety. Specifically, the presence of little graffiti, working locks, clean interiors and no broken windows were all found to be a direct result of the high quality of security services provided.

According to Hazel Younger, retired board president for the P.E. Gorman condominium development in East Brooklyn and a community activist, "Common sense tells you that protecting any development in the inner city requires much more than a presence. It's a tough and dangerous job that requires experience, skill, and dedication. Nobody can be expected to put their life on the line for minimum wage, and it's naive to think that anyone will."

In his report, Professor Hair cited a US Department of Justice finding which stated that the current wage scale for guards presents problems that building owners and other facility managers encounter with great regularity. When minimally-qualified workers perform a critical job for low wages, the consequences are costly, including a high turnover within the workforce.

Organizations with high turnovers encounter productivity losses, excessive personnel administration expenses and lower morale. According to Hair, "Effective screening reduces the expensive turnover problem. The losses can be reduced by hiring the most qualified people to fill specific jobs."

Screening Techniques

Board or building managers should inquire about the screening process of any potential security provider. This process should include a written aptitude test, psychological testing, fingerprint checks and an extensive job reference check.

Another way to combat the high turnover of inexperienced, poorly qualified guards is to provide training services exceeding industry requirements. Hair states that "the importance of having properly trained security officers on the sites cannot be overemphasized." This does not only mean initial training at the outset of employment, but also annual reviews and advanced training programs. These increase guard morale and stability through opportunities for promotions. He added that a management company should question the guard company about the degree and type of crime that it has eliminated at the sites of other clients.

Strategic Planning 

A guard company is a vital strategic partner that should also be directly involved in the development of your long-term strategic security plan. The plan should take into consideration local demographics, and review options such as armed security and hiring a guard company with experience in places where crime rates are high. If it is true that crime is not dead and that there are crime waves of magnitudes that we have yet to encounter ahead of us, than the quality of your guard service will make a profound difference in a property's safety and value. If one considers the low crime rates at well-protected housing sites such as Brooklyn's Starrett at Spring Creek, there's a solid case to be made for selecting a quality guard service, especially because of the safety delivered when crime waves roll through the city.

The goods news is that crime in New York has taken a hit, and the real estate industry deserves credit for this because of a renewed emphasis on quality security. But beware. Experts in many fields tell us not to forget to keep one eye on the long range forecast.