Your people are not being paid enough?
Afraid you’re not paying your people enough using percentage?
A fellow maid service entrepreneur came to me worried that he was not paying his people enough in this reddit subforum. His pricing and percentage given to his staff was correct yet what was paid to his ladies (he was right) was not enough. So what was wrong?
I asked him “how long would one of your people take to clean a 2000 sq ft house with 3 bedrooms and 2.5 baths?”
When he answered “ 5-6 hours” I knew exactly what was wrong.
And I thought that the new guys starting out here may have this same issue, lacking the opportunity to have tried out enough staff to know the solution yet.
Percentage is THE way to go!
First, percentage is the way to go because:
- you are guaranteed a percentage of the job, thus containing costs
- percentage rewards your efficient and effective staff
- nurtures your new maids by giving them more time to complete the job (assuming you have flat rates for regulars as I do).
- keeps accounting simple. No need to waste time on recording hours. As with everything, keep things as simple as possible because as you grow, complexity will try to creep in and overwhelm productivity.
Initially, like most, I started paying per hour though quickly found percentage was the best way to go. When switching over quality got better and cash flow increased.
This is why the larger franchises such as Merry Maids and The Maids use percentage: they learned that it was the best way, too.
Find the BEST people
So the problem was not his pricing or percentage he was giving his people. The problem was…
They were to slow. Instead of 5 to 6 hours they should be completing the house in 3.5 or 4 hours. Completing a job quicker equates to a higher hourly wage. This is why percentage rewards your quickest people and allows time for the newer, slower one’s to improve if the pricing is a flat rate.
For Dallas Maids we do the first job at an hourly rate however I take extraordinary effort to find the BEST people from the beginning. My interviewing process is more selective than some of the ones I went through while in the professional work force after university! And I dare say, more effective. THIS has been my secret to success.
If I have too much work and am desperate for more people (which happens) I do not hire just anyone to take care of the extra business. Yes, sucks to lose business because you don’t have the staff to accommodate however you do not want to tarnish your reputation by sending just anyone (In these cases send the extra leads to your friends). So when I send a team to work hourly for first time or one time jobs, they get down to business, go on automatic pilot, and rock the home, making it sparkle. Slow, idle individuals don’t work for me.
AND not only do they clean the house efficiently, they do it effectively. They may be fast, but they don’t do a rush job. These are the people you need to hire. These are the people you need to keep. And if they are making good money while be taken care of by you, your customers will be happy and your business will thrive.