SSR Salary Survey 2002: Money, money, money...

Budgetary constraints imposed upon subsidiaries of the major US companies, in conjunction with the UK's own micro recession, have meant that take home remuneration for security professionals has dropped back to 1999 levels. That's the major finding of this year's SSR Personnel Annual Salary Survey for the security industry – the tenth such survey we've published.

In most recessions, the mean salary level tends to decrease as the middle management function is redefined or profit bonuses reduce. Although the expected dip in mean salaries for the past 12 months has not been as great as could have been expected, the differential between salaries paid at the employment negotiation stage and the final salary offered in job advertisements (typically around the 10% mark) has slumped to about 4% as companies have taken full advantage of an opportunity to halt the 'salary escalator'.

It must be said that the knowledge drain caused as a result is potentially very damaging, as experienced managers have taken advantage of either attractive redundancy packages or 'third career opportunities' (as they're euphemistically referred to by some industry commentators).

Post-11 September 2001, the demand for experienced crime prevention operatives within the banking and finance sectors has driven up remuneration for these 'short term' assets! For their part, executive boards have reviewed their own personal security needs in the light of the ongoing terrorist threat.

The IT security sector has seen a slump in demand as new projects are put on hold, but IT projects already in place on short or long-term contracts still offer good packages. Indeed, the ever-present threat from the Internet and various forms of white collar crime is likely to sustain current employment levels.

Average salary increases Average salary increases are ordinarily viewed as showing the difference – perceived by employers – between one discipline and another. In 2002, the indications are that a great many security departments are receiving the same enhancements as other professions where employees receive performance enhancements beyond the norm (in late 2001, the normative increase was 2.8%). The length of time security managers are remaining in post is increasing from its average of four years, but the quartile differences for similar positions remain polarised. In monetary terms, this can equate to £40,000 or more.

It will come as no surprise to any practising manager that high staff attrition rates suffered within the low tech support structures remain as such, with some major security contractors still churning staff at a rate of 45% per annum.

The Working Time Directive The introduction of the Working Time Directive, scheduled for next October, will not disadvantage the security profession. Hours of work to be offered are not a barrier to people applying for uniformed roles as gross earnings will remain consistent wherever overtime is enhanced after the 42-hour week. Those end users taking on contract security companies can expect to see a 15% increase in service costs following the security industry's derogation from the terms and conditions of the Directive (if they adopt overtime practices used for their own direct employees).

However, the Working Time Directive will have an effect on those managers in the security contract sector that regularly work in excess of 50 hours per week. At SSR, we're advising our clients to limit these contracts to 48 hours. That said, remuneration should be as per the longer term. The net effect will be an increase in productivity and staff retention.

The possibilities of the invisible receptionist are far from practical as employers – not to mention the general public – seek from the police service a uniformed and human presence on site above that of an electronic sentry. For the private sector profession to raise its game in order to be a part of the 'extended police family', it's true to say that salaries will have to increase. That would be in balance with a gain from enhanced skills in technology monitoring, facilities management and added value business productivity.

Geographical variations do exist, although the North-South divide seems to relate more to Scotland versus England than it does London versus Manchester. The emergence of police auxiliaries and the legislation of the industry by way of the Private Security Industry Act 2001 will play a further role in the equation, hopefully setting a salary benchmark for the professional security officer. The job demands will possibly be a reason why such positions are as popular as those of a traffic warden.

UK police forces and local councils should be looking to recruit more individuals from outside the European Union, the CIS and the Indian sub-continent.

The overseas deployment factor Security managers who are UK nationals continue to be in demand abroad, as we still have one of the lowest salary structures on home shores. As many as 35% of all ex-pats are based in Europe – a figure that, according to independent experts, is set to grow.

As the ever-cautious British blue chip companies enter international markets, the presence of a home expert in the host country is a major plus. Being a British security professional does carry a premium. How much of a premium will, as always, depend upon the negotiating skills of the individual in question! Countless studies have demonstrated that traditional qualifications enhance salaries – they also aid retention – and security management is no exception. Recent surveys have shown that managers gaining accredited qualifications in situ are also receiving better salary increases (often by as much as 7%). However, there's little evidence of such 'success' permeating through to the supervisory and support staff levels.

Just now, the standing of the security profession is being compared favourably by directors to traditional management disciplines (ie engineering, finance, sales and marketing). This credibility is solely dependent on the skills of the 'in place' individual, and the so-called '9/11 effect' of which plc boards have had to stake stock. Services being outsourced, contracted out or performed in-house must be undertaken by credible people supporting and promoting the vertical management structure.

For its part, the Security Industry Authority is another plank in the career pathway in which we all have a role to play.