Management Information

By D. Brownlee

When it comes to the discussion of money, rarely will you find a common ground between the employer and the employee. And, this is true even in the janitorial industry.

Since labor is the largest single expense a business owner must face, employers strive to pay as little as possible. Basically, just enough to keep from quitting.

On the other hand, employees want the highest pay possible. After all, they have to pay their rent, utilities, and other bills from what the employers pay them. And in return, they contribute just enough labor so as not to get fired.

So, how do you bring together the ‘payer’ and the ‘payee’.

It’s commonly accepted that the higher an employees wages, the more productive they will be. Conversely, the lower their pay, the less productive they will be. This is not always the cause, but more times than not, it stands true.

In every industry, not just the service industry, the closer an employee’s wage is to the minimum wage, the less likely that person will be an asset to your business. However, the higher the wage you pay your employee’s, the less likely you are to pick up certain accounts. After all, people tend to give favor to the lowest bidder, not the highest.

So, how do you balance the needs of the employee with the needs of the business owner? How do you pay a fair wage, and in return expect a fair day’s work?

Since 1989, I have successfully used a rule for calculating a fair wage for my personal. I call this rule, The “7-Eleven’ Rule.”

Go to your local major convenience store (7-Eleven, Circle K, etc.) and ask the manager what’s the starting wage for new employee’s. Write this figure down.

Crime statistics state that one of the most dangerous jobs today is working at a convenience store. Every day clerks are faced with the possibility of being robbed. And not just robbed, but also robbed at gun or knifepoint.

Yet, these stores continue to have people show up day after day, knowing this is the case.

Now, working as a janitor, especially at night, can be dangerous, but not as dangerous as a convenience store clerk.

So, the 7-Eleven Rule for compensating janitors is this: Take the starting wage for a new employee at your local convenience store and multiple it by 80%, and you’ll have wage that is fair to both the employee and employer.

For example, if the starting wage for a convenience store clerk is $10.00 per hour, then an employer should pay their janitors no less than $8.00 an hour.

This formula has been proven to work in smaller markets, as well as large metropolitan areas. Regardless of the cost of living, major companies like 7-Eleven and others are paying approximately 20% more than successful janitorial companies.

Now, as an employer, you may feel that this number is too high. But keep in mind, the reason we have 50% + turnover per year is due in part to our employees feeling like their not being compensated fairly.

As an employee, you may feel that this number is too low. But keep in mind you’re safer cleaning a building at night, than most convenience clerks are working in broad daylight.

So, overall, the 7-Eleven Rule will allow an employer to continue to be competitive, while reducing turnover by paying a higher wage to their staff.

D. Brownlee http://www.BreakTheCycleOKC.com

D. Brownlee currently works as a Territorial Area Developer for a large janitorial company. He manages in excess of $1.5 million dollars of volume, overseeing hundreds of janitors. For more information on his company, you may contact him at http://www.BreakTheCycleOKC.com