Private Sector Issues

1. Private Sector Issues Chapter Two The Business of the Private Security Industry

2. The Business of the Private Security Industry • Goals • How does private security differ from public policing? • What is the size and scope of the private security industry? • What are the problems facing private security, licensing, regulating, hiring and training, what are the current standards and what reforms are in the motion to resolve these problems?

3. The Business of the Private Security Industry • What is the Private Security Industry? • Citizens come into contact with private security all the time • Security checks at customs • Public transportation • Factory, office settings or private shop • Even the public police employ private security firms to handle non-sensitive duties

4. The Business of the Private Security Industry • What is the Private Security Industry? • There are many definitions of Private Security but the best is “that both private and public policing are concerned with the prevention of crime and apprehending of criminals, but public police are paid by public (taxes) funds and whereas private security personnel are generally paid by the private sector, private corporations or private persons”

5. The Business of the Private Security Industry • What is the Private Security Industry? • The Hallcrest Report divides the private security industry into three broad categories • “Physical Security” • Protecting people and property • Guarding building entrances • Preventing shoplifting • Patrolling buildings and other premises • Maintaining order

6. The Business of the Private Security Industry • What is the Private Security Industry? • The Hallcrest Report divides the private security industry into three broad categories • “Information Security” • Protecting information • Unauthorized use of computer programs • Preventing theft of corporate research and development plans

7. The Business of the Private Security Industry • What is the Private Security Industry? • The Hallcrest Report divides the private security industry into three broad categories • “Personnel Security” • Protecting people • Executive or celebrity protection • Background investigations on prospective employees

8. The Business of the Private Security Industry • What is the Private Security Industry? • The American Society of Industrial Security (ASIS) has four categories • Physical Security • Information Security • Personnel Security • Information Systems Security

9. The Business of the Private Security Industry • What is the Private Security Industry? • “Operational Security” focuses on the daily operations and patterns of behavior of a corporation or organization • ASIS has further divided Operational Security • Educational institution, financial services, gaming & wagering, healthcare, information systems, lodging, manufacturing, retail, transportation and utilities

10. The Business of the Private Security Industry • What is the Private Security Industry? • Hallcrest II identified nine distinct categories • Proprietary Security (company has its own security department) • Contract Guard & Patrol Services (leased or rented to another company) • Alarm Services • Private Investigations

11. The Business of the Private Security Industry • What is the Private Security Industry? • Hallcrest II identified nine distinct categories • Armored Car Services • Manufactures of Security Equipment • Locksmiths • Security Consultants & Engineers • Other

12. The Business of the Private Security Industry • What is the Private Security Industry? • The Economist divides security into four categories • Guarding • Risk Management • Investigation and Detection • Control in the Criminal Justice System • Those non essential duties (prisons or courts)

13. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Walker says “the size of the privates security industry is difficult to determine because it involves many small, private agencies, part time employees and security personnel that are employed by private business” • The Economist says “the most visible and fastest growing parts of the private security businesses are in areas that were once the preserve of the public police”

14. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Private security employees now perform the majority of the Homeland Security jobs in our nation • A significant percentage of the billions of dollars in taxpayer monies spent by the federal Department of Homeland Security goes to the private security industry

15. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Researcher and Business Estimates • It is estimated that there are three times more private security employees (1.8 million) than public police • Private security responses to 50% of all crimes committed on private property • 60,000 private security firms in the U.S. • The U.S. spends $90 billion/year on private security

16. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Researcher and Business Estimates • Private security firms have now developed “overt” as well as “covert” actions • Surveillance or countersurveillance regarding trade secrets • The Society of Competitive Intelligence Professionals says 80% of the Fortune 1000 companies have regular in house “snoops” on the payroll

17. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Researcher and Business Estimates • Individuals also cause an increase in the private security industry by: • Installing security systems, twice as many in five years, and respond to the alarms • 25,000 new gated communities • 76% of new cell phones were purchased for safety reasons

18. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Researcher and Business Estimates • Large scale events use private security • 30,000 private security officers for the 1996 Olympics in Atlanta (3/1 officers/athlete) • 40,000 for the 2002 Olympics in Salt Lake City at a cost of $213 million • 4,385 officers to guard military installations to replace military personnel off to Iraq ($194 million)

19. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Researcher and Business Estimates • So, who pays for all this extra security? • Many believe that it is paid for by corporations, but in reality the consumer pays for a large portion of it in the cost of goods at retail outlets

20. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Dept of Labor, Bureau of Labor Statistics Study • Assignment: Check out a private security position that interests you • Look at qualifications, description, benefits, pay, working conditions, locations… • Find the information in: • The Occupational Outlook Handbook in the Evans Library HD8051.O15 or • on the web at www.bls.gov/oco

21. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Dept of Labor, Bureau of Labor Statistics Study • Industries employing the largest number of security officers: • Elementary and secondary schools • General medical and surgical hospitals • Local governments • Traveler accommodations • Investigation and security services

22. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Dept of Labor, Bureau of Labor Statistics Study • The U.S. Dept. of Labor reports that opportunities for security officers and gaming surveillance should remain favorable in the future (2014) as concerns about crime, vandalism and terrorism continue to increase the need for security • Review Exhibit 2.2, page 39

23. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Dept of Labor, Bureau of Labor Statistics Study • Private Detectives and Investigators • Highly competitive, because investigations attract the best and most qualified • Entry level jobs are found at large dept stores or chains • Demand will result from an increase in crime, litigation and the need to protect information, loss prevention and spying

24. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Dept of Labor, Bureau of Labor Statistics Study • Insurance Claims Investigator • Work for property, auto and casualty insurance companies • Deal with claims when the is a question of liability, fraud or crime • They investigate, negotiate settlements and authorize payments

25. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Dept of Labor, Bureau of Labor Statistics Study • Insurance Claims Investigator • May work investigating complicated fraud rings, doctors, lawyers and insurance personnel • May require a college degree, former police officers, military personnel, private investigators, claims adjusters or examiners

26. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Dept of Labor, Bureau of Labor Statistics Study • Security and fire Alarm Installers • Install, program, maintain and repair security and fire alarm wiring and equipment and up to local codes

27. The Business of the Private Security Industry • Size & Scope of the Private Security Industry • Professional Association Study: ASIS Survey • Salaries, Exhibit 2.4 page 42 • Security managers $90,000/year • International and higher levels earn more • Military veterans earn more • CPP certifications earn 18% more • Also receive health care, dental and disability

28. The Business of the Private Security Industry • Why Do We Have Private Security? • The U.S. approach to law enforcement is unique when compared to the rest of the world • Many countries have national police forces • Some believe that the FBI is a national police force, but its main emphasis is the investigation of crimes not the enforcement of laws

29. The Business of the Private Security Industry • Why Do We Have Private Security? • Local, state and federal CJ agencies employed 2.4 million people (58% at the local level, 31% at the state level and 11% at the federal level) • The U.S. spends $83.1 billion/year for police protection (45% of the CJS budget) • The primary responsibility for police protection still falls to local governments

30. The Business of the Private Security Industry • Why Do We Have Private Security? • There are 15,766 full time law enforcement agencies in the U.S. • 12,565 general purpose local police depts. • 3,061 sheriff’s offices • 49 state police departments (Hawaii) • 1,400 special district police departments (park police, transit police, constables offices…)

31. The Business of the Private Security Industry • Why Do We Have Private Security? • With all this public policing, why do we still have three times the number of private security officers?

32. The Business of the Private Security Industry • Why Do We Have Private Security? • Limited Jurisdiction of the Police • The police power is generally exercised in public places, they can’t enter private places unless invited in, there is an emergency or a warrant • Police can’t conduct background checks on potential employees, escort business owners making deposits (equality) • Police can get involved in civil cases

33. The Business of the Private Security Industry • Why Do We Have Private Security? • Reactive Role of the Police • The role of the public police is reactive, concentration on investigations and arrests of past crimes • Private security is more proactive and concerned with maintaining a sense of security by preventing crime • Private security is more concerned with protecting assets and carrying out private organization’s policies and procedures

34. The Business of the Private Security Industry • Why Do We Have Private Security? • Philosophical Differences • Formal policing (police, courts, corrections) • Private policing (handled “In House”) • The Task Force on Private Security of the National Advisory Commission on CJ Standards and Goals “a large percentage of criminal violators known to private security personnel are not referred to the criminal justice system”

35. The Business of the Private Security Industry • Why Do We Have Private Security? • Workload and Duties of the Police • Police are too busy responding to emergencies, arresting offenders…. • Half of the businesses surveyed felt the CJS does a poor job of fighting crimes against businesses

36. The Business of the Private Security Industry • Why Do We Have Private Security? • Workload and Duties of the Police • Police began because of the poor job private security force did • Now, the trend is the other way, from police to private security • One reason is that the police can’t adapt quickly to major social or technological changes

37. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • The private security industry, has suffered, primarily at the entry and non-managerial levels from a lack of professional standards

38. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Traditional Problems with Standards • Traditionally, there has been a lack of personnel standards for the private security industry and their employees in terms of licensing, regulating, hiring and training • The Rand Study found less than half of the private security officers in the U.S. were high school grads, were 52 years old, were underpaid and poorly paid

39. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Traditional Problems with Standards • Walker says the requirements are minimal and training is non existent • A security officer job is often a last resort for people unable to find other jobs • Police officers view private security officers to be deficient in professional training • Hallcrest II argued there should be better standards and state regulations for officers

40. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Traditional Problems with Standards • “Thugs in Uniform” • Set fire to Universal Studios $25 million • Murdered former girlfriend w/shotgun • Shot wife to death • Firebombed apartment complex • Masterminded a bank robbery • Rape and sexually assaulted five women

41. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Traditional Problems with Standards • Poor security officers performance at airports may have led to 9/11 • In 1987, only 11 states required training for armed security officers, some only required an application and licensing fee • By 1990, 39 states imposed some licensing regulations, but 17 still had no training

42. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • U.S. Dept of Labor says most security officers need to be 18 years old, pass a criminal background check, complete a training program and pass drug test • Armed security officers are required to have a H.S./GED, prior responsible experience, more training and licensing, more in depth background checks, more $

43. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • Many states are now requiring background, criminal record and fingerprint checks, good health, mentally alert, emotionally stable, good communication skills… • But, Colorado, Idaho, South Dakota, Mississippi and Missouri still have no state licensing requirements

44. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • Private detectives and investigators don’t require any formal education, but many have four year degrees, have previous experience in other occupations (insurance, collections, law enforcement, military, investigations, intelligence)

45. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • The majority of states require private investigators to be licensed • The requirements vary widely, but most exclude felons • Some have mandatory training • Still, Alabama, Alaska, Colorado, Idaho, Mississippi and South Dakota have no state licensing

46. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • California requires private investigators to be 18 years of age, have a combination of education in police science, criminal law or justice and experience equaling three years of investigative experience, pass an evaluation by the DOJ, pass a background check, pass a written test…

47. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • Corporate investigators must have a bachelor’s degree, some have master’s degrees, receive formal training from their employer • There is also certification from professional organizations (the National Association of Legal Investigators)

48. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • In 1992, NYS mandated a state licensing procedure for all security officers including 8 hour pre-employment training, passing a 1 hour test, fingerprint checks, background investigation all before applying for a license • Armed officers must complete and additional 47 hours

49. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Licensing, Regulating & Hiring Standards • NYS con’t • Once employed the officer must pass an additional 16 hours of instruction by the employer and an additional 8 hours/year

50. The Business of the Private Security Industry • Licensing, Regulating, Hiring and Training • Training Standards • More and more states are requiring on going training for retention of certification • Officers receive training in protection, public relations, report writing, crisis deterrence, first aid and other specialized training (armored car officers)