Proprietary Vs. Contract Security Companies

by Ted Marten; Updated September 26, 2017

Proprietary security and contract security companies are responsible for protecting companies and businesses and ensuring the safety of employees and consumers. A proprietary security company is controlled entirely by a particular company and is responsible for the hiring, firing and management of personnel. A contract security company is operated by a professional security company and contracts its services to different companies.

Cost

Proprietary security is more expensive because your company is in charge of paying for benefits and higher wages for experienced personnel. Because the status of proprietary security is considered higher, it usually attracts a higher quality of guard. The wages tend to be lower with a contract security company because uniforms, sick leave and training benefits are all covered by the service.

Control

Proprietary security employees often feel more loyal to a particular company, because they feel a camaraderie with fellow employees and have an opportunity for growth and promotions. There may be periods of time when a company may have to add or lay off workers, which can create a security problem within a company. By using a contract security service, companies have the opportunity to deal with staffing problems easily and quickly.

Consistency

If your company requires daily security organization that needs to be micromanaged, having day-to-day proprietary security may be the way to go. An important consideration when deciding which type of company to use is that regardless of which type of security company you select, employee turnover is a possibility. Depending on the site, this could be problem that affects the safety of the individuals in the area.

Effectiveness

Proprietary security personnel are trained to the specific needs of the company, which helps them become more familiar with the layout of a building and recognize individuals coming in and out of offices. Because of a high turnover rate, contract security guards aren't given the opportunity to become as friendly with employees. This can affect their loyalty and commitment and adversely, to your detriment, affect their performance.

Liability

When a company decides to go with proprietary security, it is responsible for taking the proper measures regarding background checks and ensuring that an applicant has the proper training and skills to handle a job of this magnitude. When working with a contract security company, you don't have to worry about training, recruitment or background checks; it is all handled by that firm.

About the Author

Ted Marten lives in New York City and began writing professionally in 2007, with articles appearing on various websites. Marten has a bachelor's degree in English and has also received a certificate in filmmaking from the Digital Film Academy.