CONTRACT SECURITY VS. INHOUSE SECURITY

Security Officer Check Point

USING IN-HOUSE GUARDS


PROS

  • Greater control of quality and appearance of officers. Customer service and response times are directly monitored.
  • Guards can be trained to trouble-shoot basic security system problems.
  • Officers may have greater loyalty to a dealer. He/she is more personally connected and responsible to the dealer.
  • Can be marketed as a bundled service.
  • Enables better communication with customers. Information is delivered directly to the dealer rather than through a third party.

USING SUBCONTRACTED GUARD SERVICES


PROS

  • Less work for a dealer because background checks, training, hiring and firing of officers are all out sourced.
  • No purchase of extra patrol vehicles (and insurance, gas & licenses) required.
  • Usually it is easier to fire a subcontractor than an employee for poor performance.
  • For small dealers, subcontracted guard services are better equipped to field an adequate number of patrol cars to cover a large service area.
  • Can be marketed as a bundled service (although not as easily as if a dealer uses its own employees.)

USING IN-HOUSE GUARDS


CONS

  • Potentially greater liability exposures and increased insurance cost.
  • Requires different management and personnel skills. Patrol officer work requires a completely different mentality than that of a security technician. Management may not be prepared for or experienced in dealing with these types of employees.
  • Workers compensation and other employee benefits costs increase.
  • More vehicles (and the required insurance, upkeep and licenses) must be purchased for patrols.
  • Greater number of employees must be supervised.
  • Dealer is directly responsible for background checking, training and licensing of guards.

USING SUBCONTRACTED GUARD SERVICES


CONS

  • Guard services may not be available in certain areas.
  • Less control of quality and appearance of officers. Customer service and response times not easily verified.
  • Guards usually are not as well trained in electronic security.
  • Potential for unscrupulous subcontractor to provide confidential information to competitors or steal business (this can be prevented with confidentiality agreements and noncompete clauses in the contract).
  • Contract between the dealer and subcontractor is needed. Legal expenses will be incurred if counsel is hired to draw up contract.
  • Because a third party is involved, there may be a delay in communicating customer issues to the dealer.

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