C.human-capital1People are key to Success

The Company’s business is labor intensive and, accordingly, is affected by the availability of qualified personnel and the cost of labor. Although the security industry has high employee turnover, the Company has not experienced any difficulty in employing and training sufficient numbers of qualified security guards and other employees.  By developing an employee culture that emphasizes personal career development and provides rewards for long-term quality service and paying above average wages to security officers, Worldwide is able to attract a higher quality employee committed to providing a high level of service.  Worldwide aggressively seeks potential employees and the Company currently uses several resources to attract employees, including various community-based organizations, job fairs, recruiting seminars and relationships with various vocational and technical schools.  The Company also offers bonuses to existing employees and managers who provide valuable referrals.  By actively seeking qualified applicants that meet the Company’s standards, it is able to maintain a database of candidates to draw upon as personnel needs arise.

While Worldwide has a lower turnover rate compared to the overall industry, the Company will continue to reduce its employee turnover rate and reduce recruiting, training, uniform outfitting and other operating expenses.  Wage determinations are based on considerations of the local labor market, the particular working environment, unique customer requirements and the necessary skill level desired for the applicable security officers.  The resulting relatively high tenure of Worldwide‘s officers reduces workers compensation and general liability expenses, which are significantly lower than industry norms.

Ten percent of Worldwide employees are covered by collective bargaining agreements.  The Company believes that its relationships with its employees is good, and has not experienced any work stoppages as a result of labor disputes.  The security officers and other personnel the Company supplies to its customers are in all cases Worldwide employees even though they have been placed at a customer’s location.