Reducing Turnover:
Retention of Current Guard Force

Kristen McManus
April 25, 2003

Imagine this: you are a security manager who is currently in the hiring process. You have published an ad, spoken with some of your business partners, and are now looking through hundreds of resumes. You narrow it down to about 10 or 15 applicants and then conduct personal interviews. You finally find someone who fulfills all of your requirements and expectations. While you may have gained an employee, the process has cost you several thousand dollars. Then, this person leaves a few years down the line, and you must repeat the entire process (Society For Human Resource Management, 1999).

Increasing turnover rates are becoming more and more of a problem. Many people are not aware that seventy-five percent of new hires replace current employees ("Report on Salary Surveys," 2000). Research from The Freedonia Group Inc., a market research firm, shows that turnover exceeds 100 percent annually for the Security Industry (Goodboe, 2002). There are numerous reasons why turnover is so high. Some of theses include a lack of training or poor training, poor attitudes, officer treatment, and low wages. Regardless of the reasons companies may experience high turnover, the positions still must be filled. There are two options when it comes to handling turnover: replace the positions with new officers or take steps to retain the current workforce. When replacing employees, money, as well as time and performance, is lost. It is therefore more beneficial to a company to initially spend money on creating programs and reorganizing to maintain the current guard force.

No company wants to spend a large amount of money on creating programs that do not give a 100 percent guarantee of a positive outcome. The first thing to do is to look at what the company is losing during turnover by explaining how the costs are compiled. There is not just one specific cost of turnover. There are costs due to a person leaving, recruitment costs, training costs, lost productivity costs, and new hire costs (Bliss, n. d.). Bliss lists 10 variables that contribute to the cost of employee turnover:

1. The costs of the person or persons, including overtime pay for current officers, who temporarily fill in while during the search for a new employee;
2. The costs of lost productivity. This is calculated at 50 percent if the position is being temporarily filled, or 100 percent if not;
3. Costs of an exit interview and paperwork for stopping payroll and benefit deductions;
4. The cost of training that has been invested in the employee, along with an extra certifications and programs the company may have paid for;
5. The impact on the productivity of others based on who will fill in and how will that affect the work of others. Some deadlines may not be met;
6. The cost of department staff discussing reactions to the vacancy;
7. The cost of continuing benefits for eligible employees;
8. The cost of lost knowledge, skills and contacts that the person takes upon departure;
9. The cost impact of unemployment insurance and the time spent to prepare for an unemployment hearing, otherwise the cost paid to a third party to handle the unemployment process for the company;
10. Subtract the cost of the person who is leaving for the amount of time the position is vacant.
    

Recruitment costs are calculated through:

1. The cost of advertisements mostly ranging from classifieds to a display advertisement; employee referral costs, Internet posting costs;
2. The cost of the time for the recruiter to learn the position requirements, develop and enact a sourcing strategy, review backgrounds, prepare and conduct interviews, make reference checks, notify unsuccessful candidates.
3. Costs of developing candidate interview schedules and making any travel arrangements for candidates out of the area;
4. The administrative cost of handling, processing and responding to the average number of resumes considered for every position;
5. The time spent by the recruiter interviewing candidates;
6. The cost of drug screens, educational and criminal background checks and other reference checks. This can be very costly if you have outside entities providing these services;
7. The cost of pre-employment tests to evaluate skills, abilities, aptitude, attitude, values and behaviors.

Training costs are calculated by:

1. The cost of orientation, orientation salary, the cost of the person who conducts the orientation along with any materials used;
2. The cost of departmental training, and departmental training salary;
3. The cost of the person or persons who conduct the training;
4. The cost of various training materials needed including company or product manuals, computer or other technology equipment used during the training;
5. The cost of lost productivity of the supervisor spent in assigning, explaining and reviewing work assignments and output.

When the new employee is learning, he or she is not fully productive. Lost productivity is calculated through productivity weekly:

1. Upon completion of training, the employee is contributing at a 25% productivity level for the first 2 - 4 weeks. This turns out a 75% lost cost of the new employee's full salary during this time;
2. At 5 - 12 weeks, the employee is contributing at a 50% productivity level. This makes 50% of the full salary during this time;
3. At 13 - 20 weeks, the employee is contributing at a 75% productivity level. This cost loss is 25% of the full salary during this time;
4. Calculate the cost of coworkers and supervisory lost productivity in terms of the amount of time spent to bring the new employee "up to speed."
5. Calculate the cost of mistakes the new employee makes.

New hire costs include:

1. The costs of a new employee including putting the person on payroll;
2. Establishing computer/security passwords and identification cards;
3. Leasing equipment.
   

Employees are the greatest expense for companies, yet it is the area where the least amount of investment is placed. Replacing a worker can cost 2-3 times as much as retaining one ("Report on Salary Surveys," 2000). Spending money on creating retention programs for the current guard force will pay for itself in the long run.

There are several different viewpoints on what to do in order to retain the current guard force. The most obvious is that money is the biggest factor and wages need to be looked at. A second viewpoint is that changes in the recruiting process will head off the problem before it even starts. A third viewpoint states that the training of the officers is what will ultimately determine turnover.

The criminal justice field has never been thought of as one of the best fields to get into in order to become a millionaire; however, some find it difficult to simply survive. "Many security personnel earn less than $17,028-the federal poverty level" (Goodboe, 2002). Security is the first line of defense and protection for many people, property and assets; this job holds many responsibilities. A study done across the U.S. showed that in most cases security officers were being paid the same amount as janitors, and in some cases even less (Walker, 2001). Employees in positions with great responsibility should be compensated for their work. In the past it has been proven that higher rates of pay attract more qualified employees, provide higher morale, and in turn require less supervision from management, while the employees make statistically fewer mistakes (Walker, 2001). Higher wages also have reported to reduce absenteeism and raise productivity. Through studies done by Pinkerton, it was found that "security officers who make $1 per hour more than other security officers in the same city and region tend to stay with the company twice as long" (Walker, 2001). What is becoming more and more of an occurrence is people using the security officer position as a second job due to its low wage. On the other side, some who chose security as their primary job go out and obtain a second job to make ends meet. When the number of hours and travel time is added up for two jobs, room for error can become a major problem when the officer is working at less than 100 percent (Walker, 2001).

Providing a decent benefits package is also something to consider. One approach that appears to be successful is the "direct billing" approach of medical payments, vacation payments and other benefits. Through this process, only the actual benefits received by the officers are paid for, which in turn decreases costs for part time and temporary employees. Also, benefits are offered, such as paid sick days, floating holidays, and payment for no absenteeism, all reinforcements for good behavior (Johnson, 2003). Raising wages and providing good benefits is one way to increase security retention. Deputy CEO of Securitas, Amund Skarholt, is quoted as saying. "The wage level in some countries is extremely low, if you compare it to other countries. And to a security officer, wages play a decisive role-I would say it is 95 percent of the job. So if we can't offer a decent wage, the guard won't stay, and we want people to stay with us!"

Aside from wages, a popular view on retaining the current guard force is through the recruiting process. It is during the recruiting process that the employer can get a look at the motivations and attitude of the prospect. Attitude has a lot to do with success in a job. People are more likely to take pride in their job and strive to do well when they feel that what they do provides a crucial service. Several ways to get a look into the type of attitude a prospect may have is to find out why the person wants to be a part of the business (Hertig, Aug. 2001). An issue that has a large affect on turnover is the awareness of job duties. Duties should be made very clear to the prospect at the time of recruitment, allowing the prospect time to decide if this job will be compatible. The prospect should be made aware of the types of advancement offered throughout the employment period, along with the duties and pay that correspond to these positions (Johnson, 2003). Advancement is becoming more and more of a factor contributing to turnover. If measured in prospective employees during the selection process, these 10 factors that have to do with personality should reduce turnover (Society For Human Resource Management, 1999):

1. An interest in problem solving
2. Behavioral impulsiveness
3. Interest in creating new ideas
4. Social expressiveness
5. Personal flexibility
6. Need for perfection
7. Degree of self centeredness
8. Degree or rule following
9. Teamwork willingness
10. General attitude
    

It is very hard to measure all of these factors effectively. The best thing is to be aware of them while the selection process is commencing and to remember that it is not uncommon for people to lie on their applications, interviews, and references (Society For Human Resource Management, 1999).

The third view on reducing turnover is to provide excellent training for the officers. Training is a key factor when it comes to performing a job well, providing familiarity and an understanding of responsibility along with creating a feeling of confidence. There are many things that can be done to improve training. Crown American Properties' regional security training director, Randy Rice, has implemented an excellent training program at West Manchester Mall in York, Pennsylvania, that has proven to reduce the turnover for his officers 85 to 90 percent (personal communication, Feb. 19, 2003). In his own view, his training program keeps the officers challenged and provides a proactive approach. During his initial training period, his officers watch a series of Professional Training Security Network (PSTN) Basic Security Officer Training videos (Rice, 2003). Upon completion of the videos, the officers are placed in a 90-day probation period. It is during this time period that the officers are each assigned to a Field Training Officer (FTO), who helps acclimate the new officer to the type of duties he or she will be performing and become familiar with policy and procedures. It is also during this time that the officers must complete the "Emergency Response to Terrorism" course by FEMA, as well as receive monthly safety and security training. The officers receive certification in handcuffing and use of fire extinguishers (Pero, 2003). After the 90 days, an evaluation is done to determine if the officer is compatible with the job. If the officer remains after this time, it is then that the FTO becomes more of a mentor to the new officer, and various other certifications are received such as CPR, AED, OC, Emergency Procedures, and Report Writing (Rice, 2003). Within one year, all officers are to complete the PSTN Supervisor Series. While every officer may not become a supervisor, every officer will be forced to make snap decisions at some point. Randy Rice's approach allows his officers to be as equipped as possible to make the right choices, and feel comfortable in any situation that may arise (Rice, 2003). An aspect that Rice feels is a major asset to the company and the reduction of turnover is that many of his officers are EMTs or firefighters as well. Rice allows these qualified officers to utilize their outside talents in their security position. He assigns the EMTs to take care of making sure all the medical bags are in stock and the firefighters make sure that all the fire extinguishers and fire inspections are up to par. By not isolating his officers to just patrol procedures, officers have a greater sense of importance and contribution to their job (Rice, 2003). Rice also pays for and encourages outside certifications of his officers. Certifications through outside agencies are very valuable. The International Foundation for Protection Officers and The International Foundation for Cultural Property Protection are just two non-profit organizations that offer certifications (Hertig, 2001). Another factor that separates Randy Rice's program at West Manchester Mall from others is the fact that his officers are in direct contact with Fire and EMS, and there is a very tight liaison with the West Manchester Township Police (Rice, 2003). This cooperation between services accounts for increased security and safety. More thorough and dedicated training reduces turnover and provides greater productivity in the officers.

Reducing turnover will help in maintaining the organization. Managers play a very important role when it comes to organizational development. Managers need to make sure that the officer has a clear understanding of his or her job and job responsibilities. Also, managers are the people who need to guarantee that the officers are equipped with the appropriate equipment needed to complete the job effectively. Policies and procedures should be clearly defined and presented to the officers. Ways to achieve this include providing the officers with handbooks or manuals that clearly state policies and procedures and are updated as changes arise (Johnson, 2003). Specific "post orders" may also be given out to ensure that specific duties are preformed correctly (Johnson, 2003). Open communication is also very important. If the officer feels that he or she can talk to management about problems and be taken seriously, he or she is more inclined to develop a good work ethic and feel important to the organization. Often it is the employee's suggestions that best alert management to problems, since the employees are the people who interact with and are most familiar with the scene.

Establishing professionalism is important in a good organization. Ensuring that uniforms are kept in good condition and worn appropriately is a good way to establish professionalism (Goodboe, 2002). A final aspect to good organization is quality reports. Daily shift reports and incident reports should be standardized and meet all guidelines. Reports ensure the protection of the organization, and allow managers to see how personnel resources are being used: "Reports not only provide the recipients with useful information, but they are also the security department's own best advertisement of its services" (Johnson, 2003). The key to good organizational development is awareness.

While there is no way to completely eliminate turnover, there are ways to significantly reduce it. By investing in ways to keep the current guard force, not only is money saved for the organization, but also productivity and satisfaction are met, in the long run. The security industry comes with much responsibility. An organization where the main goal is "to protect" should not be constantly dealing with the change of personnel, increasing the opportunity for mistakes. Retaining versus replacing the guard force will benefit the officers, the public, and the organizations they protect.

References

Bliss, W. G. (n. d.). Cost of employee turnover. The Advisor. Retrieved on March 18, 2003, from http://www.isquare.com.

Goodboe, M. E. (2002, November). How to turn around turnover. Security Management, 11. 65-68.

Hertig, C. A., (2001, August). Recruitment and retention strategies. Access Control and Security Systems. Retrieved on February 22, 2003, from http://securitysolutions.com

Hertig, C. A., (2001, September). Using training as a recruitment, retention and organizational tool. Access Control and Security Systems. Retrieved on March 18, 2003, from http://securitysolutions.com

Johnson, J. W., (2003, February). Get the most from your guard force. SMO:Management. Retrieved February 23, 2003, from http://www.securitymanagement.com/

Pero, J., (2003). Retention through training: A success story. Access Control and Security Systems. Retrieved on March 18, 2003, from http://www.securitysolutions.com

Report on Salary Surveys. (2000, December). Retention Consulting. Retrieved February 18, 2003, from http://www.retentionconsulting.com

Society For Human Resource Management (1999). Head off turnover at the selection process Retrieved March 18, 2003, from http://www.shrm.org.

Walker, D., (2001). A living wage. Pinkerton Solutions Magazine, 1. Retrieved February 22, 2003, from http://www.pinkertons.com/solutions/livingwage.asp

About the author:
Kristen McManus, a freshman at York College of Pennsylvania, is currently studying for a Bachelors degree in Criminal Justice. She is a Security Officer for York College Campus Safety and Security. She is an ASIS International member, and can be reached at kmcmanus@ycp.edu.