How To Calculate The Cost Of Poor Training

business woman blowing money away|Corporate Training| Lewisville TXDo you ever wonder “where on earth does all my money go?”  It’s like a leak in the bucket of profitability that you can never seem to plug.  What is the cause, and how do you plug that leak once and for all?

Everyone who knows me, knows I’m a NUMBERS FREAK!  I always ask “how does the data support that?” before I endorse a change someone wants to make.  Whether it’s a coaching client suggesting a solution to a problem they are having, or an employee from one of my companies that has a great idea.  I always ask:   “What do the numbers say?”  “SHOW ME THE NUMBERS!”    I’ve learned over the years that the numbers never lie and they always tell a story.  If you want to know what it’s actually costing you in terms of dollars and cents to continue to run your business with a weak or non existent training program, consider these real factors:

3.75 Hours – If a team of three cleans 5 jobs today, and they waste 15 minutes per job due to a lack of well-defined cleaning strategies and processes, that equates to 3 hours and 45 minutes of totally wasted productivity TODAY.  Here’s how that was calculated:

  • 15 minutes per job wasted X 5 jobs = 75 minutes per person
  • 75 minutes wasted per person X 3 in a team = 225 min. (divide that by 60 min. and you get 3.75 hours of lost productivity for the day and extra wages paid)
  • If your team of 3 wastes 15 min. per job 5 days a week, that’s 18.75 wasted hours per team per week
  • Payroll Cost – If you pay each member of the team $12 per hour, then you’ll fund an extra $225 a week in unnecessary wages PLUS worker’s comp and payroll taxes for that one team.
  • Monthly Cost – is up to $974.25 (+ payroll taxes) for one team
  • Annual Cost – is over $12,000.  Again, “extra wages” per team

What if your team actually wastes an hour per day per person, due to inefficient cleaning times?  That cost is now 4X and is up to $48,000 in extra payroll expense FOR ONE TEAM!  Uh-Oh, you have three teams??????????????

Here’s the problem, we get so focused on ALL THE REVENUE our staff is generating that we fail to pay attention to where all the profit is leaking out.  There are many reasons why a company could be losing profits, but training is one of the big ones.

Now, let’s do this in REVERSE and end on a much more positive note, lest you close this email and begin sobbing

uncontrollably into your hands!

If a team of three could increase their productivity by just 15 minutes per job (and most could improve more) here’s what you could do with all that extra productivity without even hiring one more person:

  • You could sell another 3.75 hour job per day, per team!  If your rates are approximately $40 an hour that’s an extra $150 in revenue you could say “yes” to rather than “so sorry, we are booked up for today, how about tomorrow?”
  • If you did that every day, your team would generate an extra $750 in revenue for the week, and that’s 100% profit for those who pay hourly because they got the extra job done in the same amount of time they used to spend doing one less job.
  • Repeat that 5 days a week, 52 weeks a year and your team brought an extra $39,000 in revenue and SAVED you that $48,000+ in extra payroll expense
  • Oh!  You have 3 teams?    We’ll now you’re net gain is……. too much for me to calculate!

Yes, these figures are accurate.  If you have 10 or more hourly paid cleaners, the cost or savings to your company is over the roof top!  Of course you might not add one full job per day per team for 52 weeks.  I get that.  But, for many these numbers are not extreme, they are EYE OPENING!

So………what were you saying about not wanting to spend the money to send your entire admin staff and trainers to the Speed Cleaning Conference in June?  ………….. you’re welcome!

Speed Cleaning For The Pros Conference

 

Don’t miss this opportunity to attend a two-day LIVE Event to improve or create your effective residential cleaning business training program!

REGISTER NOW!  

Space Is Limited So Hurry And Register!

Leave a comment below!  Tell us what your biggest frustration is in training, or what you do to successfully train a new employee:

01 How To Handle Employee Tips During The Holidays

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01 – 12 Cleaning Business Tips Of Christmas

I am sharing my 12 Tips Of Christmas with you on video to help you maximize the holiday growth season!  January will slow down so let’s make the MOST of the next two weeks.  I have some exciting events, and deals coming up, so be sure to open your emails as soon as you get them!  One thing that comes up during the holidays is employee tipping.  During the holiday season some customers get extremely generous while other customers leave nothing.  There is a big debate amongst cleaning professionals about sharing tips with the entire staff or letting the employees keep the entire tip they received.  This video should help provide some guidance on the best course of action to take.

 

How Incremental Change Affects Your Cleaning Business Growth

penny-million-maid coach | Consultant | Lewisville TX

Think about this – would you rather have $1 million today or a magic penny that doubles in amount once a day for 31 days?

It’s tempting to take the million. After all, if you pick the penny and wait a week, you only end up with 64 cents. Half way through the month the penny has only double to less than $82!  This is the point most cleaning business owners give up in their business journey to success. Their proverbial “14-day point” can occur 5 years into their business, 10 years, or even more. At 28 days the regret is mounting: “why didn’t I just take the million dollars?!” can be heard and felt loud and clear and often-times reinforced by pressure from family. However, if you wait the full 31 days, you’ll be shocked at what happens.

When it comes to your business, little, consistent investments or little, consistent mistakes reap big rewards or big problems. Think of the magic penny as little ways you maintain your business each day – answering your phone on the first ring, returning voicemails on time, regular networking, delivering door hangers and flyers, closing new sales, and so forth.  Consistently doing what has proven to work in the past will pay off incrementally over time.

Your business is never in neutral; it is always in a state of improving or failing. It’s up to you to decide which it’s going to be.

Choose to make positive changes for your business now, and you will reap the rewards in the future. Your magic penny is having the tools and information you need to succeed and grow your cleaning business.  For most people the answers will not come naturally, that’s why I’ve helped hundreds of cleaning business owners around the world fix their cleaning business and grow.  If employee turnover is out of control, if profits are too low, and training is poor you will not succeed in the residential cleaning business.  The concepts I teach are not complicated, in fact they are extremely easy.  The problem is, it’s easy not to do and most have no idea what not to do.  My Cleaning Business Fundamentals Course helps you set your cleaning business up for success from the start.  Whether you are a start up or you’ve just struggled to get your business to the next level, this course will fill in all the knowledge gaps you have for laying a foundation for success.

To learn more or schedule a FREE business consultation today, fill out this survey: 

Free Business Consultation

 

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