All cleaning business owners know the headache of continually training new staff, but have you sat down to run the numbers. What is it costing you to constantly be replacing staff? Is it possible that you could save money by investing in internal development and motivation rather than recruiting and training.
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n this video, restaurant staffing expert Ken Bergen explains how to calculate the cost to your business of employee turnover. Consider making an alternate investment in staff development and motivation to increase the average months of employment, which can in turn improve customer satisfaction and retention. Spend less to make more!
FAQs
Q: What is cost of employee turnover in a cleaning business? A: Cost of employee turnover in a cleaning business is a management measure that helps a residential cleaning company understand performance, compare periods, and make better operating decisions.
Q: How do you calculate cost of employee turnover in a cleaning business? A: Use consistent data from the same reporting period, apply the formula described in the article, and document which revenue, clients, jobs, or employees are included so results remain comparable.
Q: Why does cost of employee turnover in a cleaning business matter to a cleaning business? A: It connects day-to-day activity to profitability, capacity, retention, or growth and can reveal problems before they become visible in the financial statements.
Q: How often should a cleaning company review this KPI? A: Review it at least monthly. High-velocity measures such as revenue, leads, jobs, labor, and staffing may also need weekly monitoring.
Q: What should owners do when this KPI worsens? A: Confirm the data first, identify the operational driver behind the change, assign one corrective action to an owner, and monitor the next several reporting periods before drawing conclusions.
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Tom Stewart is a CEO and industry thought leader focused on scaling residential cleaning businesses through strategy, systems, and leadership development, translating complex concepts into actionable frameworks. With his wife Janice Stewart, he co-owns Castle Keepers, the first company to achieve CIMS certification. Tom is the founder and CEO of MaidCentral Software, the leading business management platform for professional home cleaning companies in North America, and the founding editor and publisher of Cleaning Business Today. Learn more at TomStewart.com.
Founder and CEO
