As businesses continue to grow in complexity, contracted security services have become a fundamental component of their infrastructure. According to a report by Allied Market Research, the global security services market size was valued at $292.3 billion in 2019 and is projected to reach $795.0 billion by 2027, growing at a CAGR of 14.8% from 2020 to 2027 (1)
Despite the rise in demand for these services, a challenge has emerged – businesses overstepping their boundaries and interfering with the management of guards from a contracted security company. This practice has potential legal and operational implications, and it can hinder the efficiency and effectiveness of the security company's service delivery.
Legal Implications
Interfering with the management of guards can potentially lead to legal implications. According to R. Zachary Wasserman from the law firm of Wendel, Rosen, Black & Dean LLP, interference could lead to joint employer liability (2). When a business dictates or involves itself in the day-to-day activities of the guards, the business could inadvertently become a "co-employer," which would make it liable for any actions committed by the security personnel.
Operational Effectiveness
From an operational perspective, interference in guard management can impact the effectiveness of the security service. Security companies are specialists in their field, using their expertise and experience to manage the guards effectively. They have comprehensive training programs, policies, and procedures that they implement to ensure the quality of their services (3).
When businesses interfere, it can disrupt these processes and lead to inconsistencies in service delivery, according to an article in the International Journal of Business and Management. It might also undermine the authority of the security company, resulting in confusion among the guards about who they should be reporting to and taking orders from.
Eroding Trust
Trust is a crucial aspect of the client-contractor relationship. When businesses interfere with guard management, it can lead to a breakdown in trust. A study in the Journal of Business Ethics found that trust in the client-contractor relationship can significantly influence the success of the contracted services.
In addition, if the security company perceives that the business does not trust it to manage the guards effectively, this can lead to reduced commitment and motivation on the part of the security company, potentially impacting the quality of its services.
Mitigation Strategies
To address these challenges, businesses should strive to establish clear boundaries and expectations at the outset of the relationship. This includes developing a comprehensive service level agreement (SLA) that specifies the roles and responsibilities of each party.
Regular communication and feedback sessions can also help to address any concerns or misunderstandings. Furthermore, businesses should respect the expertise and autonomy of the security company, allowing it to manage its guards effectively.
In conclusion, while businesses have a vested interest in the services provided by contracted security companies, they must be wary of overstepping their boundaries and interfering with guard management. Doing so not only risks legal implications and operational inefficiencies but can also erode trust, an essential element of a successful client-contractor relationship.
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Footnotes
Allied Market Research. (2020). Security Services Market Size, Share and Industry Analysis. https://www.alliedmarketresearch.com/security-services-market ↩
Wasserman, R. Z. (2017). The Dangers of 'Co-Employment' in Outsourced Services. Wendel, Rosen, Black & Dean LLP. https://www.wendel.com/publication/the-dangers-of-co-employment-in-outsourced-services/ ↩
Security Industry Association. (2020). ↩