What’s the Real Cost of a “Cleaning” Employee?

What's the real cost of hiring a cleaning employee?What’s the Real Cost of a “Cleaning” Employee?

It’s likely to save your company money if you hire a cleaning company like ours,  SolSource Janitorial than to hire an employee to clean your office or building.

Currently, in Arizona the current minimum wage is $10.00 per hour, but that basically reflects an untrained and unskilled worker. To be fair, it’s unlikely that a quality and well trained cleaning (janitorial) employee will work for less than $11.50 per hour, minimum

Also, The current Arizona wage law requires employers to accrue (pay) “Paid Sick Time” (PST) at a minimum rate of one hour for every 30 hours worked, which is effectively a 3.33% increase in wages. Add in the Employer required contribution to FICA (Social Security), which is 6.2% of wages up to $110,000, and also the employers required contribution to Medicare is 1.45% of wages, $11.50 per hour is suddenly $12.76 per hour.

As if that weren’t enough there are other hidden cost of having your own janitorial employees, such as:

  • Companies usually offer a minimum of at least one week paid vacation to full time workers, most companies offering two weeks). Using a calculation on one week paid vacation effectively increases the base pay by another 1.9% (3.8 % for two weeks), as someone else must cover the services provided by a cleaning employee during the time away from work.
  • Most companies provide at least some level of employee health care, and in 2016 private companies (non-governmental) typically paid about $5,000 per year per employer for health care cost. If we were to conservatively use an employer healthcare cost per employee of $2,400 ($200.00 per month), that would equate to 10% additional wage cost for an $11.50 per hour employee.
  • Cost of management and supervision is a real cost. Someone must take the time to organize, direct and supervise cleaning (janitorial) employees, and that in addition to cost of worker’s compensation, unemployment insurance contributions, cleaning supplies and equipment, the hiring, training and replacing of employees as well as Human Resources operational costs, all of which can easily exceed an additional 40% of the wages for an $11.50 hour employee.

The bottom line is that an $11.50 hour employee has a direct hourly cost of $12.76 per hour in base required costs, plus another 41.9+% (about $4.82 per hour) in less obvious, (but real), employee costs, making the real minimum cost for an $11.50 per hour employee to be from about $15.28 per hour to $17.58 per hour; and usually even more.

As a footnote, quality skilled janitorial employees today expect to make a least $15.00 or more, which skews the above figure up by about another 30%, which is why $22.00+ per hour for high quality, hard working, janitorial contract workers turns out to be a very fair minimum cost, and in most cases a bargain.

At SolSource Janitorial (480) 269-9550, we can not only provide excellence in all areas of commercial janitorial services, we can do it at a very competitive cost. We do this by keeping our overhead extremely low, which allows us to compensate our professional cleaners at some of the highest compensation levels in the industry. Needless to say, cleaners who feel that they are well paid and appreciated, in turn provide excellent cleaning service.