No one disputes the importance of managing safety and minimizing risk on the job. Protecting employees and customers from undue hazards is an obligation most businesses take seriously. Loss of life or injury can be catastrophic to any organization, and could result in costly litigation and settlements.
Some numbers from Marsh Risk Consulting paint a picture. The average workers’ comp medical cost per lost-time claim has increased 7 percent in the last four years. Just as telling, a business with $100,000 in workers’ comp losses and a 5 percent profit margin needs to generate $2 million in sales to overcome its workers’ compensation claims. These days, that’s a tall order.
Setting standards is where companies struggle with safety issues, and working with employees to comply with safety regulations. Electronic access control plays a role in a host of possible safety scenarios including after-hours employees; terminated employees, training/certification requirements; and hazardous areas and public safety.
These questions should be part of any safety discussion.
1. Does the building have electronic access control to minimize intruders from gaining access?
2. Does the customer stockpile/use hazardous materials?
3. Are there sophisticated, safety mechanisms in place to protect electronic records and files?
4. Does the company have electronic access control installed in rooms/areas containing confidential information?
5. If the customer utilizes potentially dangerous mechanical equipment, is electronic access control used to protect the untrained from gaining access?
Your prospects may call it inventory shrinkage, or shrink for short. Large amounts of shrink cuts into profits – making a big difference in the amount of margin or profit a retailer can retain – and typically leads to higher customer costs.
Shrink happens through employee theft, shoplifting or administrative error and vendor fraud. It’s bad news however it happens, and it is getting worse.
Global shrink cost retailers $119 billion last year, according to the Global Retail Theft Barometer, an annual study by the Centre for Retail Research. In North America alone, the cost of this shrinkage was $45 billion, representing 1.5 percent of retail sales.
What’s startling is that employees, and not customers, are the primary source of shrink. Loss categories that contribute to shrink include cash, product, intellectual property, equipment, tools, computers and supplies.
An average company that invests in an electronic access control system throughout their facility can substantially reduce shrink from internal theft by 50 percent or more. Key areas of deployment include product inventory rooms, materials and supply locations and back doors of the facility.
These queries about levels of theft should be part of every access control conversation.
1. What types of products might employees steal from your organization?
2. How can the general public steal from you?
3. Are all your valuable assets sufficiently protected?
4. Are your more mundane office supplies adequately secured?
While the issues may seem evergreen, asking the right set of questions is where your opportunity lies. Prospects are looking for information and for answers, maybe in areas they are not even aware of. Make these questions your own to broaden and enhance your sales discussions this year.
John LaFond is Director of Sales - Commercial Access Group, Linear LLC. Linear LLC is a pioneer in engineered radio frequency (RF) products and is a major supplier of wireless residential security systems, access control, intercoms, garage door operators, gate operators, short- and long-range radio remote controls, and personal emergency reporting systems. For more information, contact Linear LLC. Telephone: 760.438.7000. Web: www.linearcorp.com.