2015 – Janitorial Tips from a 35-year Industry Pro

Janitorial Fair Wages

With the truly, humbling success of CleanlyRun (formerly CleanGuidePro), we’ve received a lot of questions (from companies all over the world) about a variety of topics in the janitorial industry. Today I’d like to share one about Janitorial Fair Wages.

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Question: I’m new in the business and have been doing all the work myself, along with my wife helping. I want to go after larger accounts that will require me to start hiring employees.

I feel that if I pay my cleaners $20-$25 an hour, they will all do a great job, thereby eliminating complaints. Also, I’ll let my potential customers know this and be able to charge more. What do you think?

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Answer: Sounds good in theory. Pay them more, they’ll perform better and my customers will gladly pay me more!

Unfortunately, after three decades in business, hiring 1,500+ employees, experimenting with wages and interacting with hundreds of customers, this approach simply does not work in practice. Your question has two parts. let’s take a closer look…

Part 1: Pay entry level cleaners $20-$25 an hour, (when the prevailing wages are $12.00 -$15.00) and they’ll perform better.
My Take: Maybe, maybe not. My experience has been that the vast majority of “poor performers” will perform just as poorly at $18.00 an hour as they will at $12.00. However, a market–rate employee should quickly move up to higher wages as their performance warrants it. (And performance can be improved with proper training, supervision and followup.) In other words, higher wages are earned, not a given. So definitely reward your top performers in short order, but don’t assume that starting a new hire at “above market” rates will guarantee a high performance.
Part 2: My customers will pay me more to get better service, “if” I pay my employees more.
My Take: Good luck with that. Listen for the deafening silence of the “crickets” when you approach your clients with that logic. Customers today “expect” great performance and outstanding value in their selected service providers. They want and deserve great service at a fair market price. Take great care of them, cherish and yes “love” them. You will make more money though extra project work, carpets, floors, supply sales, customer loyalty and invaluable references!

Trust me on this one. Pay the fair and prevailing wage, provide training, supervision and followup. Increase pay based on performance and charge your customer a fair market price, then take care of them and watch your profits and business increase!

Janitorial Employees versus Subcontractors?

Who cleans your buildings? Your janitorial employees or subcontractors? Not sure what the difference is? Well, as a business owner you should know the difference and be committed to classify your cleaners correctly. It’s not difficult to determine and it would behoove you to do it right, thereby avoiding costly IRS penalties, fines and tax levies for unpaid payroll tax liabilities on misclassified workers.

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Over the course of 25 years in the janitorial business, this has been my experience…

An employee: If you have the right to control or direct not only what is to be done, but also how it is to be done, then your workers are most likely employees. Basically, if they answer to you, wear your uniform, use your equipment or vehicles, use your chemicals and you train them how to perform the tasks, they are definitely your employee. Therefore, you must deduct and pay the appropriate employee payroll tax liabilities of your state or jurisdiction.

There are numerous accounting software programs and payroll companies that can handle this for a nominal fee. They calculate the correct payroll tax deductions, write the payroll checks, file timely and accurate quarterly reports, such as 940’s, 941’s, UCT6’s, etc..

EMPLOYEE PROS:

They do it your way! You hire your own people, train, supervise, inspect and personally control the quality.
You know exactly who’s in your buildings.
You make a higher profit margin percentage than using subcontractors.

A Subcontractor: If you can direct or control only the result of the work done and not the means and methods of accomplishing the result — then your workers are probably independent subcontractors (whose wages are reported to the IRS via form 1099). An example of using a legitimate subcontractor would be to pay another janitorial service company – (that has their own license, liability and workers comp insurance) – a percentage of your total contract revenue to clean a building.

I’ve used subcontractors on select projects and I’ve also been been a subcontractor for some huge national companies (on statewide cleaning contracts). I’ve made a legitimate and legally classified profit in both scenarios. But 99% of the time, I use my own employees…

SUBCONTRACTOR PROS:

When you’re awarded contracts in other cities or states and the logistics and distance of the location behooves – (I just like that word) – you to use a local cleaning company.
You just set the guidelines and expected results. The subcontractor hires their own people, trains, supervises, inspects and personally controls the quality.
You cut one monthly check to your subcontractor, minus your profit.

Keep in mind my friends, whether using your own employees or a subcontractor to fulfill your contract service requirements, classify them properly. (There are plenty of IRS guidelines and accountants to help you.) Want to sleep well at night? Pay the tax man correctly!

Drake

Janitorial Company Newsletters

How necessary are Janitorial Company Newsletters to the success of your business? In your own mind, you can make a case for or against just about anything and be satisfied with your decision. “It’s time consuming, it costs money, probably no one will read it anyway, blah blah blah.” Then be content with your decision, right or wrong. Let me challenge you to make a right decision concerning all things, but specifically Company Newsletters.

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As the Good Book tells us to spread the “good news” and admonishes us to focus on, “whatever is good, admirable, excellent or praiseworthy, to think and report on such things.” In the same spirit, a “Good Newsletter” that recognizes and praises employees for outstanding performance, perfect attendance, anniversaries or birthdays, just to name a few, is invaluable to your company as a whole!

In the janitorial business, especially, where only one or two employees are assigned to a single building with little or no contact with other employees, newsletters are a great way to keep them feeling part of the team. Let me give you my Top Company Newsletter sections, (in no particular order), that have shown the love to my many employees and customers over the years!

Customer Spotlight: We send our newsletters to our customers as well. We highlight one of our customer’s facility managers in each of our monthly newsletters. We put their pic and a brief Bio of them. We tout their good qualities and what a pleasure it is to team up with them. Everyone loves to see their name and pic in print and it strengthens our business relationship. Win-win!
Helpful Customer Tip: Things such as, “Did you know that using Roll Towels vs Multifold Towels, Jumbo Roll Tissue vs Household Toilet Tissue can save you 20% in annual supply cost?” They (accurately) view your company as a valued partner in keeping their costs in control, plus you’re seen as an expert in the industry.
Employee Milestones: New employees, 6 month, 1 year, 2 year, 5 year anniversary, birthdays, etc.., whatever to put their name in print. As I said earlier, everyone loves to see their name in print, for whatever reason.
Employee Praise: If you, one of your supervisors or a customer reports an exceptional job done well, performance, or anything good about your employees, tell it/give a shout out in your newsletter.
News Updates: “We were just awarded the contract for ABC or XYZ companies”, “We just implemented such n such software to better serve our customers and employees”, etc. Shows your employees and customers that your company is highly in demand and the real deal!
Safety Tip: Reminders to put out wet floor signs at all times, never push down on trash cans with your hands or how to deal with a bloody spill at a medical job site all convey that you as a company are concerned with your employees safety and well being.
Crossword Puzzle: You can find these all over the internet to copy and paste. Try to use questions and answers that are cleaning related. Such as, what floor cleaner is best to use on waxed floors..? Answer: Neutral Cleaner. I was actually surprised, but people love crossword puzzles!
Offer Services to your Customers: Let them know that you offer janitorial supplies, residential carpet cleaning services, tile/grout cleaning, etc.. You will get extra work.
Training: Offer reminder monthly training tips, such as restroom training, vacuuming, detail vacuuming or dusting tips. Keep emphasizing the basics!
Message from President: Offer an encouraging word to your biggest asset, your employees. Give an uplifting message that inspires from you or a quote from someone that inspires like Zig Ziglar, that said “people don’t care how much you know, until they know how much you care, about them”.. Inspire and empower your employees!

Spread the Good News my friends. Month after month. You won’t be sorry, I guarantee it!

Drake