Challenges in Private Security Industry

The private security services industry is one of the largest employers in India. In spite of rapid growth over the last few years, the industry faces a number of challenges.
Lack of quality manpower : The private security services industry is manpower intensive and requires a considerable number of personnel to sustain its growth momentum. Availability of quality manpower is one of the key issues plaguing the industry. A majority of security guards do not receive significant higher wages than the stipulated minimum wages. This makes it difficult to attract and retain personnel.
High attrition rates : Attrition is a major cause for concern in the security services industry. This is due to the poor benefits and compensation packages, improper understanding of the operating environment, and lack of development opportunities to allow employees to grow.
Compliance concerns : Increasing compliance requirements such as training and minimum wages can lead to escalation of costs, which pressurizes margins as well as reduces the attractiveness of certain opportunities for leading players, where the unorganized sector, with low compliance costs, will be more cost competitive.
Career progression : A security guard has a very small career progression path. A maximum level that he can attain with adequate training is that of a supervisor, with not much increase in the money that he earns.
Over dependence on manpower : The security industry has pre-dominantly become manpower intensive. Due to lack of availability of skilled manpower, most of the agencies hire people to meet the basic demand of guarding entrances and exists.

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