Inflation is coming! Inflation is coming! With minimum wage increasing by 25% over the last 2 years, there is no doubt you have seen your janitorial budgets grow. The bad news is it’s not over! Over the next 4 years you will see 5% to 8% increases each year as minimum wage goes up through 2020. In the end you will have seen an 85% INCREASE in minimum wage from 2014 to 2020. This puts incredible strain on janitorial costs and other labor dependent services. With raw labor making up 50% + of your janitorial company’s budget, they must pass on the increase or face going out of business. It’s true that small companies under 50 employees can lag by one year, but who really wants to risk the operational challenges that come with letting a good company go just to save 5% in one year.
If lowest cost trumps quality cleaning and great customer service, then going out to bid might be the answer. However, if you have a good janitorial vendor, there are things you can do to partner with them to help reduce inflation.
- Talk openly with your janitorial vendor about your budget. Let them design and offer a cleaning plan that meets your budget and your quality requirements.
- Review your facility use and demands. Are there areas in your facility that do not need to be cleaned every day such as meeting rooms or offices where associates travel?
- Review your scope of work (task schedule). Are there certain tasks that can be stretched over a time period? For example, can high and low dusting move from every 4 weeks to every 6 weeks?
- Partner with your team members. Can desks be maintained by the person sitting in them? Your janitorial company may be able to provide wipes that all employees can use to dust desks and sanitize phones.
- Centralize your trash. Consider having one trash bin and one recycle bin per 10 employees. This can save 5% to 10% of your daily janitorial budget depending on the number of trash cans and employees. An important factor worth mentioning are the savings you receive by not using so many trash liners. In addition, centralized trash and recycling encourages your staff to get up and move around, resulting in increased.
The above items are just a few proactive ways you can soften the inflation blow to your janitorial costs. Maybe your vendor has already worked with you on all of the above and more. If that’s the case brace yourself for annual bumps to match the minimum wage increase. For more ideas or a review of your existing cleaning program, contact JaniTek Cleaning Solutions!