pros n cons...% v. hrly pay - Cleaning Talk - Professional Cleaning and Restoration Forum
 
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post #1 of Old 12-03-2007, 07:33 PM Thread Starter
 
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pros n cons...% v. hrly pay

I noticed some of u pay ur employees hourly and others on a percentage basis. Wat r the pros and cons of both?
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post #2 of Old 12-03-2007, 07:40 PM
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post #3 of Old 12-03-2007, 07:42 PM Thread Starter
 
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Wat kind of percentage is usually offered to the employee?
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post #4 of Old 03-09-2008, 10:08 PM
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Quote:
Originally Posted by ryanne View Post
Wat kind of percentage is usually offered to the employee?
Depends on how many employees you have on the job. Here's an example of my percentage structure and examples of how it is calculated:

PERCENTAGES PER EMPLOYEE

TWO MAIDS:
Team Leader:
27%

Assistant:
18%

THREE MAIDS:
Team Leader:
21%

Assistant #1
12%

Assistant #2
12%


Example #1:
FOUR DIAMOND Bi-Weekly Service – 2400 sq. ft. home
$133 for two hours and forty minutes of service using two maids
$160 for two hours using three maids

TWO MAID TEAM:
Team Leader: 27% x $133/2.6 = $13.81 per hour
Assistant: 18% x $133/2.6 = $9.21 per hour

THREE MAID TEAM:
Team Leader: 21% x $160/2 = $16.80 per hour
Assistant #1: 12% x $160/2 = $9.60 per hour
Assistant #2: Same

Example #2:
THREE DIAMOND Weekly Service – 1900 sq. ft. home
$72 for one hour and 37 minutes using two maids
$89 for one hour and 15 minutes using three maids

TWO MAID TEAM:
Team Leader: 27% x $72/1.58 = $12.30 per hour
Assistant: 18% x $72/1.58 = $8.20 per hour

THREE MAID TEAM:
Team Leader: 21% x $89/1.26 = $14.83 per hour
Assistant #1: 12% x $89/1.26 = $8.48 per hour

Example #3:

INITIAL CLEANING—2800 sq. ft. home
$455 for 7 hours using two maids
$467 for 4 hours and 40 minutes using three maids

TWO MAID TEAM:
Team Leader: 27% x $455/7 = $17.55 per hour
Assistant: 18% x $455/7 = $11.70 per hour

THREE MAID TEAM:
Team Leader: 21% x $467/4.6 = $21.32 per hour
Assistant #1: 12% x$467/4.6 = $12.18 per hour
Assistant #2: Same

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Cleaning for Heroes
The only 501c3 nonprofit in the cleaning industry that improves the lives of heroes, one household at a time!
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post #5 of Old 03-14-2008, 07:22 AM
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Quote:
Originally Posted by TailoredMaid View Post
Depends on how many employees you have on the job. Here's an example of my percentage structure and examples of how it is calculated:


PERCENTAGES PER EMPLOYEE


TWO MAIDS:
Team Leader:
27%

Assistant:
18%

THREE MAIDS:
Team Leader:
21%

Assistant #1
12%

Assistant #2
12%


Example #1:
FOUR DIAMOND Bi-Weekly Service – 2400 sq. ft. home
$133 for two hours and forty minutes of service using two maids
$160 for two hours using three maids

TWO MAID TEAM:
Team Leader: 27% x $133/2.6 = $13.81 per hour
Assistant: 18% x $133/2.6 = $9.21 per hour

THREE MAID TEAM:
Team Leader: 21% x $160/2 = $16.80 per hour
Assistant #1: 12% x $160/2 = $9.60 per hour
Assistant #2: Same

Example #2:
THREE DIAMOND Weekly Service – 1900 sq. ft. home
$72 for one hour and 37 minutes using two maids
$89 for one hour and 15 minutes using three maids

TWO MAID TEAM:
Team Leader: 27% x $72/1.58 = $12.30 per hour
Assistant: 18% x $72/1.58 = $8.20 per hour

THREE MAID TEAM:
Team Leader: 21% x $89/1.26 = $14.83 per hour
Assistant #1: 12% x $89/1.26 = $8.48 per hour

Example #3:

INITIAL CLEANING—2800 sq. ft. home
$455 for 7 hours using two maids
$467 for 4 hours and 40 minutes using three maids

TWO MAID TEAM:
Team Leader: 27% x $455/7 = $17.55 per hour
Assistant: 18% x $455/7 = $11.70 per hour

THREE MAID TEAM:
Team Leader: 21% x $467/4.6 = $21.32 per hour
Assistant #1: 12% x$467/4.6 = $12.18 per hour
Assistant #2: Same
How are you handling payroll expenses on those figures? Matching FICA, unemployment insurance, Workers Comp etc..? Seems that with those %'s, your labor is well ove 50% of your gross. Too much for my company to pay. I pay hourly from $10-12.50/hr. But as a percentage it is less than 40% of Gross.

I only ask so that folks can get full picture of how paying % vs. hourly would actually work out in the end. Can't make a decision without knowing those other expenses for payroll. In general, we try to keep total payroll at under 40% of gross. On a $100 clean, 2 employees are only expected to be in house for 1.5 hours. One at $12.50/hr and one at $10/hr.... $33.75 for net labor and @ $39 full payroll expense. $61 gross for company on that job. We try to be at $35/man hour on pricing. For more volume or more frequency like daily cleans, then we'll get down to $27/man hour.

Michael Kreisle, First Choice Power Washing LLC
Lexington, KY 859-983-5955
We own and operate a great Cleaning Service in Lexington KY as well as provide
awesome Pressure Washing and Roof Cleaning services.
You can follow us on Facebook here...Pressure Washing Lexington KY
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post #6 of Old 11-19-2012, 11:59 PM
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Percentage pay has to be that the employees are paid like independent contractors. Or am I mistaken?
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post #7 of Old 12-03-2012, 07:03 AM
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Quote:
Originally Posted by gachogavacho View Post
Percentage pay has to be that the employees are paid like independent contractors. Or am I mistaken?
That is what I thought as well. Because at the end of the day if you pay by percentage then they no longer are employees they can be considered sub contractors and handle taxes on they own...
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post #8 of Old 12-03-2012, 07:06 AM
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But I have a question and hope you guys can help. I pay by the hour. The issue is supplies. How do you handle that? Do you supply your cleaners with supplies or allow then to buy their own and reimburse them? I have that issue right now of which way is best
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