The New Year is quickly approaching with the unique opportunity to start fresh. MaidEasy wants to know: How would you start fresh with your cleaning business? An increase in profits? Increased productivity? If you said yes to either of these, your answer might be in switching over to Percentage Pay. This simple yet effective way of increasing both profitability and productivity is a great way to start out the New Year.
What is Percentage Pay?
Percentage pay is a way for an employer to pay employees based upon personal contribution rather than a flat salary or hourly wage. Choosing how much you pay in percentage pay is key. Most businesses will want to pay between 36% – 42% (depending on location and demographic) of a job’s fee amount. Most employees will earn way above the minimum usually if the jobs are bid correctly. Keep in mind there are minimum wage requirements for all states – you will need to track employees’ hours to ensure that the gross wages employees earn averages out to at least minimum wage. In addition, you will need to keep records and have proof each employee is on target to make at least minimum wage.
Percentage Pay is mutually beneficial for both employer and employee! Typically, both employers and employees will find themselves actually making more money per hour on a percentage pay system.
This example shows one employee receiving percentage pay and the other receiving hourly pay. If you look, the employee receiving percentage pay is also getting paid mileage – increasing their wage even more. MaidEasy’s Software calculates an employee’s payroll while also keeping track of miles paid for travel as a NON-taxable event. The profit is in the details!
Why Should My Cleaning Business switch to Percentage Pay?
Reason #1: Percentage Pay can control your labor and time.
It’s fair to say we have all seen it. Employees that are milking the clock on jobs, stopping in between jobs and not claiming their lunches so they can get that extra time. Meaning your profitability on jobs is most likely fluctuating from week to week. With percentage pay, you will have the ability to control your labor and time. You will know that every dollar your business gives to employees will result from the time spent working at a client’s house, business, etc. Percentage Pay will also naturally encourage your employees to give high-quality service, as they will be getting paid for a job well done – and not just a wage no matter what kind of work they produce or how long they work.
Reason #2: Percentage Pay rewards hard-working employees
With a Percentage Pay Plan, it will no longer be beneficial to take advantage of the time, as your employees will get paid on job performance. Your hard-working employees will naturally be paid more as they are on the job. This may benefit your employees, but it benefits you too! Think of the positives that come from hard-working employees – great reviews, referrals from satisfied customers, and continued business means more profit for both of you! And specifically, a thriving cleaning business in 2020.
Reason #3: Percentage Pay is “MaidEasy”
Okay, you’re interested in Percentage Pay. Who doesn’t want more productive employees, better business, and increased profitability? But, Percentage Pay sounds like it could be complicated. Having to pay per job rather than a static salary our hourly wage. Is it worth my time?
Our answer is, YES! MaidEasy Software makes it easy. MaidEasy Software can pay individuals at different rates and it will split the percentage pay evenly amongst the staff as you finalize the work orders (Use the payroll and gross profit reports to view and manage your labor costs).
Your 2020 Solution – Percentage Pay
Percentage Pay is such an effective way to maximize profitability and productivity. Your hard-working employees will stand to earn more, your labor and time will be controlled – meaning you will know where exactly every dollar you hand out will be going, and MaidEasy can make your 2020 transition smooth and simple into Percentage Pay. Let us make it simple for you and your business – contact us for a consultation and free trial today!