KPI: Direct Labor as a Percent to Sales
Your direct labor – the folks who are actually cleaning the houses and office for your business – is your largest single expense item…more than supplies, equipment, even vehicles if you have them for your staff. So knowing the ratio of direct labor to sales on a weekly basis can help you keep your costs in check. Remember, you want that percent to sales to be as low as possible, though most medium to large businesses should expect to see that number in the 35-50% range, depending on your growth strategy and success.