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U.S. Confronts Economics of Fear

California Staffing Professionals, January 2002
By Barry Nadell

The terrorist attacks of September 11 have caused many businesses to reassess their vulnerability to both external and internal threats. Higher security costs will be required for many to regain their footing in the new economic climate. According to one expert, tax credits may be the solution to offsetting the cost of added public safeguards.

The key action to move forward in the present circumstances is TO LOOK. Fear is overcome by looking — rationally examining potential threats and taking needed precautions. Background screening is one way of ‘looking,’ and the volume of background checks is already way up — a good sign!

New threats require new assessments. For some industries, security has always been viewed as a necessary expense — airlines check and re-check their flight crews. Other industries are just reaching this same conclusion. For instance, high-rise office buildings should be checking the backgrounds not only of their security personnel, but also their cleaning crews and parking attendants. The day may even come when we will be checking on hot dog vendors with their carts!

While the travel and tourism industries are already feeling the loss of public confidence, many others are likely to feel the pinch as security concerns become more widespread:

  • In addition to government buildings, it has been reported that other office buildings such as the Sears Tower in Chicago may also have been targeted along with the assets of major U.S. corporations abroad.
     

  • Investigations into those associated with the terrorists have revealed other mechanisms to execute attacks including crop dusting planes and tanker trucks.
     

  • While not directly linked to the September 11 events, potential future targets might include other forms of transportation such as subways, trains or buses; public gatherings such as sporting events, theatres and theme parks and other venues such as hotels and hospitals.
     

  • Even in industries which are unlikely as targets, reestablishing consumer confidence will be a key step to future economic viability. Airport security workers, limousine and taxi drivers are examples of this.

While many firms are feeling economic pain, some are still reluctant to add the expense of added safeguards. For these the solution may be some sort of government subsidy or tax credit to prime the pump. These types of incentives have already been used to promote the hiring of disadvantaged workers meeting specific criteria. The time may now have come to apply this principle in the post-terrorist economy and offset the additional costs of security that many industries are facing.

One benefit of life in the U.S. is that the infrastructure exists in the government infrastructure and the Internet to rapidly gather and verify information on an individual quickly and at reasonable cost. An average screening runs some $15-25. This capability does not exist in most countries and we should take full advantage of it.

Barry Nadell is President/CEO and co-founder of InfoLink Screening Services, Inc., a national provider of background screening, drug testing programs and products, drug awareness training, behavioral assessments, employment physicals and online employment applications. He is an expert in the legal aspects of background screening. For more information call 1-800-990-4473, or visit www.infolinkscreening.com.

 

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