Performance Evaluations

[jeff194307]

Should security companies have performance evaluations? If so, should there be a probationary period with more frequent evaluations? And how should these evaluations be used by management?

[Mr. Security]

Yes. However, if an officer receives a good (annual) review then it's only logical that he/she receives a raise as in other jobs. Since most contract security companies shudder at the mere mention of the word "raise," reviews are unlikely to be adopted, IMO.

[aka Bull]

Should security companies have performance evaluations? If so, should there be a probationary period with more frequent evaluations? And how should these evaluations be used by management?

Yes. Officers should have regular performance reports written on them. How else will an officer know how they are doing? How else will an officer be able to have documentation of their performance and the expectations of their performance. How else will management be able to fairly measure whether standards are being met? I could go on, but you see what I mean.

There should also be probationary periods for new officers. They have to show the efforts to bring themselves up to speed on their duties, on the culture of the agency or company they work for. During this period officers should receive more frequent evaluations.

For instance, in our security department an officer's first six months is a probationary period. During that time the officer will receive evaluations at the 30, 60, 90, and 180 day marks. This is to show them how they are performing to expectations and to help them in improving areas that may need work. If their 180 evaluation is passing, then the officer is no longer a probationary employee. The next evaluation will normally be at the 1 year mark, and annually thereafter.

Officers can be put on a special evaluation period at any time if there are deficiencies that need to be corrected and supervisory personnel feel this would best be accomplished by an evaluation period.

Evaluations should be used by management to determine officers that are promotable, officers deserving of pay increases, special assignments, etc. They should also be used by management to weed out those not meeting the standards.

Remember, if it isn't in writing it never happened. Evaluations get it in writing.

[aka Bull]

Yes. However, if an officer receives a good (annual) review then it's only logical that he/she receives a raise as in other jobs. Since most contract security companies shudder at the mere mention of the word "raise," reviews are unlikely to be adopted, IMO.

Granted current I am an in-house officer and our evaluations measure how much we will see in a paise raise.

When I was with the contract company evaluations were required on the officers but they didn't relate to pay raises.

[hrdickinson]

Performance Evaluations

Granted current I am an in-house officer and our evaluations measure how much we will see in a paise raise.

When I was with the contract company evaluations were required on the officers but they didn't relate to pay raises.

Bull,

As I am sure you know, but for the benefit of those that don't, in the contract industry the company bids a job and anticipates a certain profit, either based on a profit as a % of revenue, $$$ per hour, etc. Most of the time, that profit is pretty slim. If the client is unwilling to accept a rate increase for the purpose of raises for the officers, there is not much the contracting company can do. They may give one increase and eat it themselves, but they are not going to give raises that put them in a loss position on the contract. Remember, it is different than other industries. In the retail industry, for example, payroll may be a rather insignificant component of the overall expenses and raises can be given without a material impact on the bottom line.

Sometimes when they recognize a particularly gifted officer, they can move them to another contract where the pay rate is higher. Fortunately, there are clients will go for an increase in order to give pay increases, but certainly not all.

I don't have one client that wouldn't give their officers a raise, if they could!

[N. A. Corbier]

I've seen bids where the company factors in raises. Usually, though, unless there's some understanding between that company and the client, they'll be underbid in a heartbeat.

If I were purchasing security services, I would rather factor in the retention power of incremental raises. At least then I know that 3 years from now, when every other guard is making 8 an hour, the company isn't sending me 6 an hour guards.

[aka Bull]

I've seen bids where the company factors in raises. Usually, though, unless there's some understanding between that company and the client, they'll be underbid in a heartbeat.

If I were purchasing security services, I would rather factor in the retention power of incremental raises. At least then I know that 3 years from now, when every other guard is making 8 an hour, the company isn't sending me 6 an hour guards.

It's like $3.00 a gallon gasoline - everyone will complain about it but they eventually get used to paying higher prices.

Now getting the security companies to charge that three a gallon gasoline - well...........

[Mr. Security]

Bull,

As I am sure you know, but for the benefit of those that don't, in the contract industry the company bids a job and anticipates a certain profit, either based on a profit as a % of revenue, $$$ per hour, etc. Most of the time, that profit is pretty slim. If the client is unwilling to accept a rate increase for the purpose of raises for the officers, there is not much the contracting company can do. They may give one increase and eat it themselves, but they are not going to give raises that put them in a loss position on the contract. Remember, it is different than other industries. In the retail industry, for example, payroll may be a rather insignificant component of the overall expenses and raises can be given without a material impact on the bottom line.

Sometimes when they recognize a particularly gifted officer, they can move them to another contract where the pay rate is higher. Fortunately, there are clients will go for an increase in order to give pay increases, but certainly not all.

I don't have one client that wouldn't give their officers a raise, if they could!

The profit margin for many of these companies is not so tight that raises couldn't be given. The company's net income may be less but it still can make a profit. The problem is that greedy stockholders demand ever increasing share value or, in the case of a LLP, the partners aren't about to accept a smaller profit sharing. As long as the raise is swallowed by the client, all well and good. But don't even think about asking these companies to be less (notice I didn't say "non") profitable.