In the fast-evolving world of the cannabis industry, security is of paramount importance. This article delves into the intricate realm of cannabis security, with a specific focus on the role of security guards. This article explores the challenges, expectations, and potential for innovative solutions that could redefine the security paradigm in this unique industry. We will share six action items that stakeholders should consider when choosing a guard company. For the purposes of this article, LCO refers to Licensed Cannabis Operators.
Security Guards: Crime Prevention & Deterrence
The role of security guards in deterring crime has been a topic of extensive study in the traditional economy. The results have been mixed, with many studies showing little statistical difference in crime prevention or deterrence attributed to private security guards. However, it is essential to note that the cannabis industry does not operate within the traditional economy, and the dynamics at play in cannabis Green Zones are markedly distinct.
In the context of cannabis security, it becomes evident that most offenders are undeterred by the presence of private security guards. Some even go as far as to target these guards. Instances have occurred where guards have become victims themselves or initiated actions leading to investigations and lawsuits, emphasizing the unique challenges in the cannabis security landscape.
The Guard Services Industry: An Underlying Struggle
The COVID-19 pandemic has had a profound impact on the hiring pool for security guards across the nation. Additionally, increased margin pressures on commercial guard service contracts have driven down billable rates and, subsequently, pay rates for guards. In some cases, individuals may earn more working at a fast-food chain than in the security industry.
When viewed within the context of the cannabis industry, these challenges become even more pronounced. The sector is characterized by higher operating margin pressures, elevated taxes, a heightened need for guards in certain license types (e.g., dispensaries), a higher-risk environment in Green Zones and the decision of whether to employ armed or unarmed guards, which introduces complex liability considerations.
Understanding the importance of aligning expectations with pay rates becomes crucial. Guard services come at a cost, and these services can only be effective if compensation aligns with the demands placed on guards. In the cannabis industry, the importance of internal oversight and ongoing training cannot be overemphasized, extending to the management of the guard services vendor.
Aligning Expectations with Pay Rates
Setting realistic expectations regarding the scope and nature of guard duties is essential. Recognizing that guards who receive limited compensation may face challenges in performing their responsibilities, it is vital to acknowledge the level of risk they encounter and the associated liability implications. Fair compensation is key to attracting and retaining qualified guards who are motivated to excel in their roles.
Guard bill rates in California, for example, range from the mid-to-high $20 per hour for entry-level guards to $150 or more per hour for highly experienced, trained professionals. The diversity in pay rates reflects the varying skill sets, training, and experience levels among guards. All stakeholders, from LCOs and investors to property owners, landlords, law enforcement, regulators, and consultants, must grasp the realistic expectations and the specific scope of guard services.
Case Study: Loss Prevention
A case study illustrates the shift in expectations when engaging guard services. An LCO initially sought entry-level guards due to budget constraints but quickly encountered a series of challenges. The LCO owner's focus transitioned from entry-level pay rates to a heightened emphasis on loss prevention. The goal was to engage guards who understood loss prevention, had expertise in powers of arrest, and maintained a specific uniform aesthetic.
This case illustrates the existence of qualified guards willing to work at entry-level pay rates when their skill sets align with the required role. It underscores that guards, like professionals in any other field, command higher pay rates as their experience and training increase.
Guard Company Internal Oversight and Ongoing Training
To maintain a proficient security force, guard service vendors must implement robust internal oversight and ongoing training programs. Regular evaluations and performance assessments are essential to ensure adherence to protocols and standards. Continuous training enables guards to develop their skills, stay updated on industry best practices, and effectively address evolving security challenges. These measures foster professionalism, enhance public confidence, and improve the overall effectiveness of security operations.
When selecting guard service companies, particularly those with cannabis industry experience, understanding their oversight and training programs is vital. By emphasizing internal oversight and ongoing training, LCOs can expect a higher level of professionalism and competence in the guards they employ.
Getting What You Pay For
In the cannabis industry, security guards are often required during operational hours at retail dispensaries, making them an essential expense. While it may be tempting to opt for the cheapest guard services, it is crucial to acknowledge that, like any other service, you get what you pay for. Choosing the lowest-cost option may not provide the experienced, highly trained professionals that some LCOs require. However, more experienced guards command higher pay rates. Similar to any other job function, entry-level pay rates attract entry-level applicants.
Armed vs. Unarmed Guards: A Delicate Balance
The qualification standards for becoming an armed guard are not particularly high in most jurisdictions. To become an armed guard, individuals must complete basic training, pass a background check, demonstrate proficiency in firearm safety and use, and pay a fee. Maintaining armed guard status typically involves minimal ongoing training requirements. These standards present a dilemma for LCOs, as guard services should align with the level of security needed.
Many LCOs express an initial interest in armed guards as a strong deterrent for crime prevention. However, after reviewing data and conducting research, they often opt for unarmed guards due to the significant increase in liability and risk associated with armed guards.
Hybrid Solutions and New Technology
Innovative technology and automation are revolutionizing security operations. The use of drones in security operations is gaining traction and offers a range of use cases in the cannabis sector, including improving the capabilities of onsite guards, replacing guards during off-hours, and providing cluster-based security in high-risk Green Zones. More on this in the next article.
Navigating Guard Services
Navigating the complexities of guard services in the cannabis industry requires a thorough understanding of use cases, limitations, options, and the principles of "you get what you pay for." We recommend the following actions for stakeholders involved in engaging and managing guard services:
1. Understand the specific requirements of your cannabis facility and the level of security needed.
2. Align expectations with pay rates, acknowledging that fair compensation attracts qualified guards.
3. Emphasize internal oversight and ongoing training when selecting a guard services vendor.
4. Recognize that choosing the cheapest option may not provide the level of security your facility requires.
5. Consider the implications of employing armed guards and assess the level of liability and risk involved.
6. Explore innovative security solutions, such as drones, proactive video monitoring or mobile security trailers, to complement traditional guard services.
Conclusion
The cannabis industry presents unique security challenges, and the role of security guards is a critical component in mitigating risks and ensuring the safety of employees, customers, partners, and products. By aligning expectations with pay rates, emphasizing internal oversight and ongoing training, and exploring innovative security solutions, the cannabis industry can foster a more professional and competent security sector. In doing so, it can adapt to the evolving security landscape and meet the demands of this dynamic industry.
Chris Eggers is the CEO and founder of California-based Cannabis Compliant Security Solutions (CCSS), a consulting firm founded in 2021 with a mission and vision to re-define, disrupt, and significantly improve cannabis security and risk management for all licensed cannabis operators, including social equity operators and applicants.
