Security Transition "Impact to Business"

This blog is intended to provide ample information when a decision to replace or abolish an existing security service provider is taken by higher management. Information may also serve as a guiding tool while mitigating such event. A total abolition of the hotel’s security force is often inevitable. Randomly a “transition period” as commonly called by many, yet hotel security professionals consider it more as a significant “security event” that must be dealt with thoroughly, efficiently and in an accurate manner.

Unknown to many, a “transition” in this nature has in its terms sensitive “underlying impacts” to the over-all integrity of the business in which, collectively as a management must come to terms. This preferably when a security force, more than just “guards in uniforms” has become a functional unit within an organization where guest service and business interests as primary factors being considered. 

While it is a prerogative of any company in replacing security service providers, nonetheless, it is for a security person as a responsibility, to lay out all the dimes to higher management, factors that would affect the business directly or indirectly, its immediate effects and other “impact areas”. The effort primarily should come from the corporate level who has the responsibility to provide the right information to owners where well-informed decisions to this effect are crucial. 

In any impending security transition, it is of pertinent importance for all key positions, managers, all department heads to recognize these effects to better address them, for a reason that a transition, does not affect one department alone, but the entire organization as a business. 

"The Impact Areas"

• ADDITIONAL COSTS - Training Costs for new guards now becomes an immediate expense on the part of Client Company.  
• TIME, RESOURCES (Training Hours) and EFFORT – Client company spends in Training Hours to bring the new guards in a level commensurate to company standards of service.
• ABRUPT INCREASE OF CUSTOMER COMPLAINTS – Expected as an immediate impact due to guard’s inadequate training, experience, basic know how and work attitude while in the process of adopting company’s culture and working principle.
• QUALITY OF SERVICE – Consistency of service will be interrupted that would result to immediate customer complaints, dissatisfied guests and failure to deliver standard quality of service.
• HOTEL POPULARITY INDEX – Hotel may experience unfavourable guest comments in on-line guest satisfaction surveys, social medias, OTA’s and other on-line engines as an immediate effect.
• INCREASED EXPOSURE to LIABILITY – Security Incidents may rise for lack of skill or knowledge on responsive security procedures which may place the hotel to an increased exposure to liability or indemnificatory situations under the guise of “guest complaints”.
• GUEST RECOVERY EFFORTS/COSTS – Hotel in re-compensating guests as part of recovery caused by guest’s complaints/inconvenience at the minimum and negligent security issues to the maximum. 

"An Efficient Transition Process"

Whether or not a total or partial replacement of security guards is implemented, the decision may have to require careful study on the process, come up with justifying circumstances, laying out pros and cons that it may bring to serve its purpose. The process should be well supported with a complete understanding of the nature of the business, from its very on-set and more particularly at its present state. A transition is best dealt with by setting it into phases. This allows fresh guards to gradually adopt the level of service with the mentorship of the existing security force who will render hands-on daily coaching and help minimize company’s costs of training. In this manner, an efficient transition is also expected to take place within a considerable period for new guards to fully understand company’s culture and the best practices of the business. 

"Hotel Security Point of View"

“Experience based opinions from Lodging Security Professionals, how other hotels dealt with transitions, how the process affected the business and the organization”

           -       MR. PHILBERT TOGLE, CSP, Diamond Hotel, Manila Philippines

       Security Manager

“In my experience, I can say that there are more pros than cons in absorbing guards from the previous agency. Training time was minimized as there were less people to train. Old guards have been utilized as “mentors” for the new ones as they were paired off in posts that require two guards at a time. The challenge was how new guards would cope with the new job – or how fast and well then can absorb all the tasks that were diligently discussed during the comprehensive training given barely a week before they started. Then again, the presence of old guards “kept the confidence level high” as we have developed the trust on these people. That was how valuable those old guards were during that dire situation as 2 out of 3 of the total roster were new guards. Had we not absorbed the old guards, our property could have possibly suffered several business impacts.”

-       LT. COL. RAUL PERALTA, CSP, Radisson Blu

Security Manager

“It really entailed us cost during the training. We changed our security service provider as recommended by the owning company with a new one from Manila. What we did was absorb half of my existing guards and endorsed them to our new Security Service but before doing so, all of them have to be processed again by the new Security Service Provider and endorsed to me for a final interview and confirmation. At least I have not wasted all my time, effort and money of the company losing all my guards since half of them had been re-hired. However, they have to undergo some procedures to let them realize finding a new job is very hard these days.” 

       -      MR. DANNY PINEDA, Discovery Group of Hotels

Group Security Manager/National President, AESSCCI

“I agree with Raul, but changing the agency and all or some guards is an inevitable happening that only management has the final say. We can only recommend citing advantages and disadvantages. What I am saying is, regardless of length or shortness of stay, an agency or its guards or some may stay as long as management wants if the agency and their guards perform outstandingly, consistently and with utmost loyalty to the client hotel. Or if trust and confidence is lost, the work relationship can be severed within 24-hours a challenge we security managers should be prepared for. Lastly, so as not to drain the resources of the hotel, you can ask the agency to pay (to be deducted from their billing) at least some amount (even token) as Training Fee because we do the training for their guards.”

        -     MR. NICOMEDES JUEZAN, Marco Polo Plaza

Chief Security Officer

“Sometimes, even with our good intention we cannot help but comply with the orders of our superiors. Some companies require that their guards be totally changed within a year or two so as not to get them become familiar with employees and suppliers for familiarity breeds contempt. They may have a point in this premise but it will also place a strain on the Department Head of Security who gets affected when his staff are all new and needs close guidance. We are the last line of defense and management would always want us to be incorruptible. You would need to spend more time training and monitoring performance and be at their side most of the time that mistakes are corrected immediately. Win-win situation, why not release half of your agency personnel and promise management to release the other half after 6 months. This way you will have the opportunity of developing half of your new agency personnel for 6 months and task them to guide the new batch of guards and you have will have someone during the orientation and on-job training for 6 months of exposure already. We are not completely going against management but compromising just to ensure that your department would function smoothly.”

         -      MR. BINGEN MENDEZONA, CSP - Aboitiz Equity Ventures

Vice President for Security

“At Aboitiz, I always advice the Security Managers to have a working relationship with security providers. A relationship that is good for both. Actually, providers practice from my experience, has been to absorb the current guards posted only changing very few. I also had to educate my bosses (business unit owner) who believed in changing security providers every 2 years for the sole reason that; they didn’t want the guards get too familiar to company staff? This is actually to me is contrary to good management or efficiency or to any good business sense. Amazing how this mind set of mistrust has come about. Again, I prefer a working relationship where the provider becomes more of an administrator and security manager decides on the operational format, staffing, schedules, etc. I know it goes against DOLE employer/employee relationship and nullifies the advantage of contracting. Thus I encourage our security service providers to step up and really learn the security industry so as they understand the clients real requirements and delivers a total security program, a full on working relationship with long term engagements. So “YES” I want to keep my trained security staff, even when I change security service providers.. But why not improve the security provider’s capabilities and engage him on a long term relationship. Change the company’s attitude of revolving door relationship with contractors instead and have a constructive long term security program.”

       -     MR. MARK GREGOR S. BATUCAN, CSP - Park – Inn Davao

Security & Safety Manager

“I totally agree with Mr. Togle. In absorbing guards who have rendered an enormous effort, most likely, the new ones will see on how they work. Thus, the effect will be positive and they will have a basis on what really Hotel Security Operations is all about.”

"A Desirable Approach"

• Consider temporal retention of 50% of the existing guards for a period of 3 months to beable to serve as “mentors” giving fresh guards a considerable immersion period enough to bring them to a desired level of readiness.
• An evaluation to be carried out jointly by client hotel and the new security service provider to identify merits of the individual guards and those who served as mentors.
• New Security Service Provider in coordination with client hotel to come up with a solid, cost effective training plan within that 3-month period customized according to hotel operations. Training venue, equipment, logistics to be provided by the new security service provider.
• Mandatory Assessment after 3 months to determine operational capability of new guards based on performance, guests and peer comments and familiarity of security operational procedures, etc., to be conducted jointly by hotel and agency. 

"From a Business Perspective" 

The Corporate Security Person being primarily at hand in similar decisions taken by a company must obtain first hand information from amongst his people directly on the ground. Lack of the information on the exact security atmosphere of a certain property under his turf would often result to unsound decisions, inaccurate information sent across his principals or business owners who will in turn concur to unsupported recommendations. Ultimately, end-users are bound to suffer directly and in turn the company as an organization absorbs most of the impact. Being the person who takes higher confidence from the business owners, one must exactly cognizant on what and how a business unit runs. Without such skill and knowledge, one must now come to terms whether or not he can take the job with that level of responsibility entrusted upon him towards his principals. 

In the hotel and lodging industry, it is of paramount importance to consider to name a few, consistent guard services, service quality, peculiarity of the job guards are tasked to perform and the training imparted by client company to these guards from the very on-set of the business, if only to align them with our brand standards of service along with the company’s culture. This is mainly for them to be able to adopt the level of readiness that we expect them to deliver to our guests.

There are a dozen and more implications and impact areas but then again, management decision shall prevail. Nonetheless, these implications and impact areas are worth evaluating from a business perspective to help enlighten our principals, general managers and superiors towards a well-laid out picture, if “guard retention” indeed, offers more harm than benefit on the business to be protected and to the patrons they serve…