Outsourcing Your Company’s Cleaning vs. In-House Cleaning

posted on May 28th, 2014

Have you always used an employee / in-house cleaning rather than using an outside company for you cleaning needs?  If so, have you considered the following:

Cost of hiring and overtime ~ Production rates ~ Training ~ Chemicals and supplies ~ Equipment ~ Management ~ Turn-over

 

Cost of Hiring & Turnover

The cost of hiring an employee is approximately 30% of the employees annual salary.  The cost of legally required benefits including Social Security, Medicare, unemployment insurance and workers compensation if 8.1% of the salary.  The cost for life, health, disability and benefits (vacation, holidays and sick leave) average 6.6% of salary.  The incremental costs of overtime is usually up to 18% more expensive than hiring personnel and using straight time.  

Statistics show a range of turnover for employees in this industry range from 73% to 300%.  The cost of replacing an employee averages an additional 30% of the employees annual salary.  According to IFMA in-house cleaning costs an average of 23% more than out-sourcing.

 

Production Rates

The average contract cleaning company can clean an average of 40,000 sf and an in-house custodian can clean 20,000 sf in an eight hour day.  Out-sourcing can double the amount of cleaning cone in a given period of time.

 

Increased productivity = Lower Costs

(Wood, 1999)

 

Training

Consistent high quality commercial cleaning doesn’t just happen by accident.  It doesn’t even happen because of hard work alone – although that helps!  The only way it happens, time after time, if by following strict processes and standard operating procedures that guide the work and ensure quality results.  Most private companies do not have the knowledge or time to train their own employees to properly clean their business.  The best methodologies and processes increase efficiencies thus lowering costs.

 

Actual Cost Comparison

First Impressions

15,000 sf / 5,000 sf cleaned per hour = 3 hrs x 5 days/wk x $15.00/hr x 52 weeks = $11,700.00 annual cost

 

In-House

15,000 sf / 2,500 sf cleaned per hour = 6 hrs x $8.00/hr ($12,480/yr) + 30% ($3,744 hiring) + 8.1% ($998.40 benefits) + 3% ($374.40 supplies) + #3,744 (cost of replacing employee) = $21,341 annual cost

 

Difference of $9,641 per year - - Approximately 83% higher to having cleaning done in-house

 

Time is Money

The test of any cleaning company’s worth to you is whether the value of their service is worth the cost.  First Impression's goal is to provide your business with the most up-to-date, high quality, professional cleaning service at the best possible price.  You pay only for the cleaning services you need.  First Impression will tailor each cleaning program to those needs assuring you the better value for your money.

 

Costs can be measured in various ways:  Cost per square foot cleaned, labor costs, supply costs, cost of benefits and overhead costs.

 

Contracting with First Impression will give you a cost advantage!

 

Sources:  Bureau of Labor Statistics, Employer Costs for Employee Compensations (2004); Shiftwork  Solutions, LLC. Solving Overtime Problems (2007); William G. Bliss.  Cost of Employee Turnover (2008); Black Enterprise.  The high cost of turnover; why holding on to your employees can improve your bottom line (Dec. 2002); SEIU-Service Employees International Union. Janitor’s Average Monthly Income vs. Expenses (2008); The Chrysalis Corporate.  The Total View (August 5,2004); Tammy Williams.  The Trust Cost of Hiring (7/15/2003)

You only have one opportunity to make a lasting… FIRST IMPRESSION!