There still seems to be a misconception, especially among new security company owners who have perhaps been influenced by the past success of friends and family, that there is still a huge demand for third-party subcontractors across the UK security industry.
I have bad news for you, I’m afraid.
Industry Crackdown on Labour Malpractice
The scandalous malpractice and criminality seen in the labour provision sector over the last few years are causing several things to change drastically. The big security companies can no longer pay peanuts to subcontractors and then deny all knowledge of the dubious practices and labour abuse going on in their supply chains.
The SIA, HMRC, and indeed the immigration authorities, are now wise to the involvement of organised crime in the nasty underbelly of the industry. They are actively working to bring offenders in front of the courts, revoke licenses, and stamp out this criminality. All this is making shareholders a tad jittery, and worry that potential bad publicity will tank share prices, which is leading to a jaw-dropping U-turn by the large organisations that had enabled this nightmare in the first place.
We are now being treated to a masterclass in virtue signalling and a chorus of “we must fix our industry!” from the people who broke it in the first place. Stepping away from this eye-watering hypocrisy, this does mean that the third-party subcontracting landscape is changing rapidly.
Recommended Reading: Combatting Labour Exploitation In The UK
The Shift to Self-Delivery and Shrinking Supplier Lists
Many security companies are now very publicly declaring their intention to fully self-deliver on future contracts and are building regional bench teams to facilitate this. Approved suppliers lists are shrinking or being closed entirely to new applicants.
We know that it is almost an impossibility for all security companies to be able to supply enough officers at short notice, whenever and wherever required, so there will always be some need for third party labour, but, and this is the blow to so many young security companies hoping to party like it’s 2015, companies are turning to different ways to find staff and different companies to provide them.
The Rise of Tech-Driven Staffing and Recruitment Models
With the slow demise of traditional subcontracting comes the rise of the tech-driven security officer booking systems and the temp-to-perm recruitment solutions. I won’t go into huge detail about how these systems work, but the tech-driven, ‘on-demand’ staffing systems do not need to be ACS-approved to supply officers to ACS-approved companies, as they are not ‘security companies’.
They are classed as staff agencies and, as such, could not qualify for ACS approval if they wanted to. The temp-to-perm companies recruit for, and on behalf of, big client security organisations. They recruit, vet and initially employ the security officers, deploying them where their clients need them.
For up to 3 months, they act as a subcontractor, employing the security staff, but at the end of that period, they transfer employment to their clients, for a fee. These companies can, with some justification, call themselves recruitment agencies for these clients.
No more dealing with a dozen small security companies to fill the gaps in your staffing. One company will supply people to you, and pass them into your employment after they’ve made a few quid out of them. The outcome? Recruitment headaches removed and potential reputational damage drastically reduced.
Check out this guide on ACS compliance and flexible security staffing for more insights.
Why These Models Appeal to Large Security Firms
Both of these systems are safer and far less likely to cause a newsworthy malpractice scandal than subbing work out to another security company, even if that company absolutely pinky promises that they will not further sub this work out due to their own lack of staff.
I’ve heard of security officers found working on important contracts, getting paid £8ph, cash in hand, for a cowboy outfit that had been at the end of a chain of five security companies that had all subcontracted out the work. An important client mistakenly believed security was being performed by the staff of the large security company they had awarded the contract to!
The End of the Easy Money Era for New Firms
In a nutshell, the days of lucrative subcontracting partnerships are numbered. Survival for a new company in the security industry will revolve around quality organic contract acquisitions and the diversity to provide additional FM soft services. Obtaining those vital contracts, however? That is every company’s $64,000 question.
The era of quick wins through third-party subcontracting is fading fast. For new security firms, survival will depend on building direct client relationships, maintaining compliance, and embracing smarter staffing solutions.
Platforms like GuardPass are already leading this shift—connecting licensed officers with vetted employers, ensuring transparency, and helping raise standards across the board. If you’re serious about staying relevant in the security industry, adapting to this new landscape isn’t optional—it’s essential.