Date Instructor As an organization grows they gain assets and they gain value. Their buildings and offices have value. Their systems and processes have a certain value also.
With all of this value this organization will need some sort of protection to deter theft, vandalism and destruction. The boardroom conversation could go from, "We have nice stuff' to "How are we going to protect It. " Leadership will then need to decide how they will handle the issue of protecting their items that the business owns.
In the decision recess they will need to look at the pros and cons of both proprietary security and contract security.
Both of them have very big advantages associated with them but most of the time only one will actually meet the needs of the business. W
...e have established that the business has nice stuff, they need to protect it, we assume they have the money to support either option and they have a choice to make. The Issues come down to control and cost. One option will allow for maximum control whereas the other doesn't allow for much control at all.
The costs are different also.
One option there is a set cost but it could be pretty high and the other option the cost could depend upon the capabilities of the office and how many people that are being hired for the department. (Him, T. ) We have defined the problem and laid out the possible options. We will now explore the outcomes, their advantages and their disadvantages, Overall It comes down to what the right fit Is for the business. Proprietary security Advantages One possible
solution for this business is the proprietary or in-house security personnel.
These people are hired by the business HER personnel and go through the name hiring process as any normal employee.
Though these individuals may not have anything to do with the core functions of the business, they will go through the same type of process. This can lead to Issues that are outside the scope or this paper. The In-house security, of course, has advantages and disadvantages. The advantages for hiring in-house security personnel are numerous. The first main one is that you have total control of the policies and the enforcement.
You, as the manager, have total control of reporting and rules for the guards.
Another advantage s that you can pay them as you build up the organization, so the cost isn't one big payment but smaller payments. Hiring practices are another good thing about Len- house security, You can be sure of the character of the person that you are bringing the interview. In-house security can be compensated well enough so the business can minimize turnover. Turnover can be bad if the employer isn't paying the guards well enough based upon the national standard. (Blake, W. Proprietary Security Disadvantages The disadvantages of proprietary security are also varied.
One main one is that you have to pay for additional training costs. There are national laws that govern the types of training that is required of security guards based upon the type of equipment that they may interact with in the course of their duty. As the manager you are now the one who must schedule the guard's hours to ensure that there
is coverage during important times of the day and night. You may also have to manage additional insurance for security guards that carry certain types of weapons.
Lastly, if the company downsizes there is a good chance that security might get cut whereas a contract company will most likely be funded through the year and so they will maintain. Contract Security Advantages Like the proprietary security section, I will view the opposite items to support and defend contract security. There are good and bad things for both types of security. It really comes down to what is the best fit for the business. Here are some of the good things associated with contract security.
First is that they come at a fixed price.
Once the bidding process is complete, you pay and it is done. There won't be big changes to the costs. The next item is that you can state in the RAP that you need people with the most recent training available.
That may cost you a bit more but is Roth it if that fits what you need. One of the best parts about using contract security is that they are responsible for ensuring there is someone on duty when you require them to be there. It doesn't matter if there is a lot of turnover, you will have someone there that is fully trained and ready to be a security guard.
The last main point I would like to make concerning the advantages of using contract security is that your business doesn't have to worry about paying additional benefits or insurance for these employees, because they aren't your employees. Contract Security
Disadvantages The disadvantages of using contract security are that you have less control of the policies and ways of doing the work. Also, you are hoping that the guard that is protecting your office has been properly cleared and is of good character so that you don't have to worry about the security of the business.
The contract security employees work for their company and the best interests of that company will probably be higher than the best interests of the client, which is you. Finally, contract security presents a lack of control and you always have in the back of your head, who are they really working for. Which Is More Appropriate There is no right or wrong answer to this question, "which is the best, in-house or contract security? " The short answer is that whichever is the right fit for the business.
The long answer is that the leadership must analyze all of the options and all or most of the variables to determine what the best option is for the business. The choice can be difficult because if something goes wrong and it points back to the type of security that was purchased, a manager or director could be out of a Job.
There must be workups and teams sitting and figuring out the best fit for the determine the best fit is to look at what actually needs to be protected. The more valuable the items, the better chance you have with hiring professionals that are specifically trained to perform that type of security.
On the other hand if it is Just an office building with a bunch of computers
then maybe you can hire a department of security guards and train them and you would be off and running. Another factor in the decision should be time until needing security. If you have time to wait, maybe hire your own but if you don't it may be more beneficial to go with the contract security team. If you have multiple sites that need the same security, I would recommend using contract security because of the greater chance of consistency in the protection.
There is no magic to determining what solution is the right one for you and your business. You must look at your needs and at what each solution provides. Cost Benefit Analysis Cost benefit analysis is: an analysis of the cost effectiveness of different alternatives in order to see whether the benefits outweigh the costs, A majority of companies make their decisions between contract and proprietary security based solely on the overall cost. These decisions are made in order to help keep the organizations' budget in check and finances balanced.
The table inserted is the cost benefit analysis of a contracted security agency I have used for my own company. Services Allotted Equipment Cost Training Cost Salary Cost Monthly Annual Cost Total Office and Warehouse Setup 1300 200 1 500 Server Costs 3,500 120 Server maintenance Equipment Support Training 550 1200 1870 Personnel Setup 3500 6200 74400 77900 Administrative Setup Security Laptop 2475 2595 Security Software Security Cameras x 7 300 Total Setup Costs 1 5,000 4,600 6,200 82,690 5,900 I came about using only one company by doing the same process we used while I was on active duty in the
Marine Corps.
My company used several contractors and had a each one put in a proposal. Yet before we could attain a proposal we actually made a formal request for proposal (RAP) from five companies.
An RAP is a request for proposal. This is a tool that an organization uses to identify a need and to get bids back from companies that can fulfill that need for the organization. For example, if a company needs to hire contract security for their office building they will spell out all f the requirements in the RAP.
The RAP has many sections and should identify all areas of the requirements. These tools are used by large and small businesses but the larger the business the more formal the RAP is. The reason for this is because there could be a large amount of money involved and there could be issues of fair practices if the process wasn't handles correctly.
Conclusion Every decision made by a company has consequences. Whether the consequences are positive or
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