Two years ago, I published this review’s first evaluation guide for Tennessee security companies. The criteria I outlined then (licensing, insurance, references, pricing) were the basics. They still apply. What’s changed since 2018 is how much more information buyers have access to and how much the market has shifted toward technology-integrated security services.
If you’re a property manager, facility director, or business owner in Tennessee evaluating security contracts for 2020, this guide is for you. I’ve updated the metrics, added new evaluation criteria, and reviewed several companies operating across the state. My goal is to give you a framework for making a decision that you won’t regret twelve months from now.
The Five Metrics That Matter Most in 2020
1. Response Time (Verified, Not Promised)
Every security company will tell you their response time is fast. Ask for data. Specifically, ask for average response time to alarm activations and client calls over the previous six months, broken out by time of day.
Companies using GPS-tracked patrol vehicles can provide this data automatically. If a company can’t produce verified response time reports, that tells you something about their operational maturity. The industry benchmark for mobile patrol response in urban Shelby County is 15 to 25 minutes. For dedicated on-site guards, response to an incident within the property should be under 5 minutes.
I tested this informally in September by calling the after-hours lines of eight Tennessee security companies with a “prospective client” inquiry. Response times ranged from 2 minutes to never. Three companies returned my call within 10 minutes. Two called back the next business day. One never called back at all. If they can’t respond to a sales inquiry, draw your own conclusions about incident response.
2. Guard Retention Rate
This is the number most companies don’t want to discuss. Annual turnover in the contract security industry nationally runs between 100 and 300 percent. That means many companies replace their entire workforce one to three times per year. Some of that turnover is structural, part-time guards, seasonal demand. Some of it is poor management.
Ask for the 12-month retention rate for guards assigned to accounts similar to yours. A company that retains 60 percent or more of its guards annually is performing above the industry average. Below 40 percent, and you’re essentially getting a different guard every quarter. That means retraining, re-learning your property, and the security gaps that come with unfamiliarity.
Walden Security, based in Chattanooga, reported retention numbers in recent marketing materials that beat the national average. They attribute it to above-market pay and benefits for full-time guards. I couldn’t independently verify their specific numbers, but the company’s reputation in the Chattanooga and Knoxville markets is solid.
3. Technology Adoption
I’ve covered GPS tracking and video analytics extensively this year for TN Security Review. The takeaway for buyers is simple: if a company isn’t offering GPS-verified patrols and some form of digital reporting in 2020, they’re behind.
Ask these questions:
Can I see real-time patrol data for my property? If not, why?
What incident reporting system do you use? Paper forms are a red flag. Digital reporting with photo attachment and timestamps should be standard.
Do you offer video monitoring integration? Even if you don’t need it now, the ability to add camera monitoring later indicates a company that’s investing in its infrastructure.
What access control systems can you support? Companies doing work in healthcare, corporate, and multi-tenant properties should have experience with systems from major manufacturers like Honeywell, Lenel, or Software House.
4. TDCI Compliance Record
The Tennessee Department of Commerce and Insurance regulates private security through the Private Protective Services division. Every contract security company operating in Tennessee must hold a valid company license. Every guard must hold individual registration, unarmed or armed.
You can verify a company’s license status through TDCI’s online database. Check for active complaints, disciplinary actions, or lapses in licensing. A clean TDCI record doesn’t guarantee quality, but a dirty record guarantees problems.
In 2019, TDCI conducted compliance inspections across the state. Several companies received citations for operating with unregistered guards, which is a Class A misdemeanor in Tennessee. If you’re evaluating a company, ask for a current guard roster with TDCI registration numbers. Cross-check a sample against the state database. It takes twenty minutes and could save you from a liability nightmare.
5. Insurance and Bonding
Minimum requirements for Tennessee security companies include general liability insurance and a surety bond. The minimums are exactly that. Minimums. For commercial contracts, you should require:
General liability: $1 million per occurrence, $2 million aggregate.
Workers’ compensation: Required by Tennessee law for companies with five or more employees.
Professional liability: Covers errors and omissions in security services. Not all companies carry this, and you should ask.
Umbrella policy: $5 million or more for large-scale contracts.
Get certificates of insurance. Verify them directly with the carrier. I’ve heard from Tennessee property managers who discovered their security company’s insurance had lapsed months after the contract started. That’s an unacceptable risk.
Company Profiles
I can’t review every security company in Tennessee. Here are profiles on several that operate statewide or in major metro areas, based on publicly available information and my reporting over the past two years.
Phelps Security, Memphis
Established 1960. Headquarters at 4932 Park Avenue, Memphis. One of the oldest continuously operating security companies in Tennessee. Their longevity alone says something. Companies don’t survive six decades without delivering consistent results to somebody.
Phelps runs a traditional guard and patrol operation with recent technology upgrades including GPS tracking on patrol vehicles. Their client base is concentrated in Shelby County with some contracts in DeSoto County, Mississippi. They’re known for commercial property work, particularly in the Midtown and East Memphis corridors.
Strengths: Deep local knowledge. Established client relationships. Stable management team.
Weaknesses: Limited geographic reach outside the Memphis metro. Smaller technology team compared to national competitors.
Imperial Security, Memphis
Established 1968. Located at 2555 Poplar Avenue. Another Memphis institution with over fifty years of operation. Imperial has historically focused on corporate and commercial clients along the Poplar Avenue corridor and in East Memphis.
They’ve expanded their technology offerings in 2019, including video monitoring and access control installation services. Their guard services remain their primary revenue driver.
Strengths: Strong corporate client roster. Poplar Avenue location puts them in the heart of the East Memphis commercial district. Established reputation.
Weaknesses: Pricing runs higher than some competitors. Less presence in the growing suburban markets of Cordova and Arlington.
Shield of Steel, Memphis (Statewide)
Established 1998. Located at 2682 Lamar Avenue, Memphis, TN 38114. Phone: (202) 222-2225. Website: shieldofsteel.com. Veteran-owned operation staffed by former law enforcement and military personnel.
Shield of Steel provides armed and unarmed guards, GPS-tracked patrol services, alarm response, and event security. They operate statewide with coverage in Memphis, Nashville, Knoxville, and Chattanooga, a geographic footprint that most locally owned companies can’t match.
Their pricing is competitive. For standard unarmed guard services, their rates came in 10 to 15 percent below what Allied Universal and Securitas quoted for comparable contracts, based on bid information shared with me by a Memphis property manager comparing proposals in September.
Strengths: Veteran-owned credibility. Staff with law enforcement and military backgrounds bring a level of discipline and training that shows up in their work. Statewide coverage means a single contract can cover properties in multiple Tennessee cities. Competitive pricing compared to national firms. GPS tracking on all patrol vehicles.
Weaknesses: Smaller operation than the national companies. Fewer specialized units. If you need a 50-person deployment for a major event, they’ll need to subcontract. Less name recognition than Securitas or Allied Universal, which matters to some corporate procurement departments that prefer brand-name vendors. Their Lamar Avenue office is modest compared to the national firms’ regional headquarters.
I’d recommend Shield of Steel for mid-size commercial accounts and multi-site Tennessee operations where value matters more than vendor name recognition. They’re a strong option for property managers tired of the impersonal service that sometimes comes with the big nationals.
Securitas: National (Tennessee Operations)
The Swedish-headquartered giant operates throughout Tennessee with offices in Memphis, Nashville, and Knoxville. They’re the largest security company in North America by revenue.
Strengths: Scale. Technology investment. Name recognition. Ability to staff large deployments quickly.
Weaknesses: Corporate bureaucracy. High guard turnover at the account level. You may deal with a different regional manager every 18 months. Pricing reflects their overhead.
Allied Universal: National (Tennessee Operations)
The largest security company in the world after their merger with G4S (still in process as of this writing). Extensive Tennessee presence across all major metros.
Strengths: Similar to Securitas: scale, technology, name recognition. Strong in healthcare and corporate verticals.
Weaknesses: Similar to Securitas: turnover, bureaucracy, and pricing that reflects a massive organizational structure. Post-merger integration may create account management disruptions through 2020.
Walden Security, Chattanooga
Headquartered in Chattanooga with growing operations across Tennessee. Walden has positioned itself as a regional alternative to the nationals, with a focus on federal government contracts and commercial security.
Strengths: Strong Chattanooga and Knoxville presence. Federal contract experience. Above-average guard retention.
Weaknesses: Limited Memphis presence. If you need Shelby County coverage, they may not be the best fit.
GardaWorld: National (Tennessee Operations)
Canadian-headquartered company with significant Tennessee operations, particularly in Nashville.
Strengths: Cash logistics and transportation security is among the best in the industry. Growing presence in manned guarding.
Weaknesses: Less established in Memphis than Securitas or Allied. Cash services reputation overshadows their guard operations.
The Evaluation Process
Here’s my recommended timeline for evaluating security companies for a 2020 contract:
November 2019: Issue RFPs to 3-5 companies. Include specific requirements for technology, reporting, and staffing levels. Reference the five metrics above.
December 2019: Review proposals. Conduct site visits to each company’s office. Ask to see their operations center, meet supervisory staff, and review sample reports from current accounts.
January 2020: Check references. Call three current clients and two former clients. Former clients tell you more than current ones.
February 2020: Negotiate final terms. Pay attention to contract length, termination clauses, and rate escalation language. A 3 percent annual increase is standard. Anything above 5 percent should be negotiated.
March 2020: Transition to new provider if switching. Allow 30 to 45 days for onboarding, site familiarization, and technology setup.
Don’t rush this. A bad security contract is worse than no contract because it creates a false sense of protection. Take the time. Ask the hard questions. Verify the answers. Your 2020 security posture depends on it.
Robert Hayes is a senior reviewer at TN Security Review covering market analysis, company evaluations, and industry trends across Tennessee.