Los Angeles Minimum Wage Threatens to Drive Janitorial Service Prices Up
Minimum Wage Increase
The minimum wage in the city of Los Angeles increased from $10.50 per hour to $12.00 per hour. It was signed in by the mayor of Los Angeles Eric Garcetti. There will be a gradual increase in the minimum wage to a figure of $15.00 per hour by the year 2020.
As it stands the minimum wage for businesses with 26 or more employees will move up to $12.00 per hour. Those businesses with fewer than 25 employees will increase from $10.00 per hour to $10.50 per hour.The increase will be significant in the commercial janitorial cleaning industry, and the various players will have to adapt their services accordingly.
How will this affect janitorial service pricing?
Labor intensive industries such as janitorial service providers have seen rising labor costs contributing to increased service costs.
For any janitorial company, the labor costs account for the majority of the business ex-penses. It is quite a challenge for commercial cleaning companies to absorb these rising costs without passing the necessary increases to the customer while maintaining the same levels of service.
How are commercial cleaning companies responding to the increased labor costs?
The goal of the commercial janitorial cleaning industry is to comply with the new mini-mum wage laws without increasing the price structure to the client but still maintaining an efficient and effective cleaning service, by adapting to the changing climate, by providing a leaner janitorial service for the customer.
The impact of the minimum wage increase on the commercial cleaning industry will see the affected businesses getting creative in keeping costs down and still providing the quali-ty of service clients expect from their service provider. Some ways to help overcome the challenges are:
Latest Technology Cleaning Equipment
With the new minimum wage in effect, it may be time to look into new cleaning equip-ment available. The janitorial cleaning equipment available today has improved by leaps and bounds over the years. The modern vacuum cleaners and floor cleaning machines have become by design, more efficient at what they can accomplish.
Investing in newer technology may come at a price, but the overall reduction of working hours needed to complete the task can lead to significant savings.
The HEPA filtration backpacks have been proven to clean twice as much area in a building than the more traditional vacuum cleaners. Another benefit of these types of vacuum cleaners is the improvement of the quality of air. These advanced cleaning equipment sys-tems use less harmful chemicals, less water, less power and most importantly, they save on labor hours.
Reduce Cleaning Costs Without Compromising Service Quality to the Client
Another way to lower the cost implications of the minimum wage hike is to adopt the smart cleaning approach.
What this means in practice is strategically reducing services. For this method to provide an above average janitorial service without compromising the quality of service provided, the cleaning company needs to have a clear understanding of where they can cut back or reduce costs. The janitorial company should take the time and effort to know the building or premises inside and out and identify where these reductions will be most beneficial.
Meeting with the client to discuss the ramifications of the minimum wage increase on the janitorial services you provide opens the door for discussion between both parties and a way to ensure that everyone is happy.
The goal of the smart cleaning approach is to keep the highest possible standards in the services required as per the contract or agreements in place. This way, you will get the most out of the commercial janitorial cleaning service.
Team Specialization for Maximum Effectiveness and Efficiency
An efficient and effective way of reducing costs due to the latest rise in minimum wage is team cleaning. Traditionally, commercial cleaning companies use zone cleaning whereby the building is divided into zones which were the responsibility of an individually assigned cleaner, or in some cases cleaners.
The designated cleaner or cleaners are responsible for all the tasks in their respective zones; this could include an entire floor of a building. This leads to duplication between levels and requires each cleaner to have their own set of equipment and cleaning tools, which causes additional operational expenses for equipment and specialized training for each cleaner.
With team cleaning each cleaner is trained to specialize in one area of expertise, be it vacuuming, restrooms or other specific duties. These cleaners will then be responsible for these tasks throughout the building or on different floors, increasing efficiency and at the same time reducing equipment costs.
The new minimum wage measures put into place have had an enormous impact on compa-nies both small and large. For businesses to continue to grow and keep the levels of ser-vices provided to the customer at peak levels, it pays to be creative and adapt to meet the increased demands placed on the company.
Because labor drives the commercial janitorial services industry, the need to keep opera-tional costs down is essential to the success and the well being and retention of staff.
The above guidelines should help in your janitorial services to reduce overall costs but not at the expense of providing inferior quality service.