Many businesses do their cleaning in house because they are under the impression that they are saving money. But if all the “hidden costs” are detailed and added up, the reality is often that it costs more to handle janitorial work with employees than with a motivated, cost-effective service contractor.
Here’s a real example of how we can help save your company money. Check out this comparison of the typical costs for doing your cleaning in-house compared to the cost of contracting with us.
Our service charge typically includes all items below in one predictable monthly number:
- Weekly gross wages
- Employer side FICA
- Employer side Medicare tax
- Employer FUTA tax
- State unemployment insurance tax
- Worker’s Compensation insurance
- Liability insurance
- Inefficient work setup
- Benefit cost – Health insurance
- Benefit cost – Dental coverage
- Benefit cost – Pension, profit sharing, 401k
- Vehicle cost and repairs
- Gasoline for vehicles
- Uniform cost
- Sick time replacement labor cost
- Vacation time replacement labor cost
- Equipment cost
- Equipment repair cost
- Labor time spent fixing equipment
- Cleaning chemical costs
- Hiring and recruitment costs – newspaper advertising fees
- Manager’s time interviewing potential staff
- Manager’s time training staff
- Manager’s time motivating staff
- Manager’s time disciplining staff
- Manager’s time terminating, re-hiring, and retraining
- Time disputing unemployment claims
- Risk of increased state unemployment tax rates on all employees if cleaner collects benefits
- Possible litigation and legal expense from disputed termination
- Office employment paperwork – I-9′s, W-4′s and applications
- Office staff time – ongoing payroll paperwork
- Risk of increased Worker’s Comp. rates for all employees if cleaning employee files claim
- Payroll service fees
- Reduced rental income if property is not clean