A few years ago there were practically no ads in the paper under these headings, because they weren't needed.  Prospective employees called building service contractors for jobs.  There were plenty of potential candidates.  The big challenge at that time was going through the large stack of applications, perhaps as many as 75 to 100, to find the most qualified.  In those days it was a contractor's market.  Today it is quite the opposite.  There is heavy competition among contractors to attract high caliber custodians and supervisors to their firms. 

Janitorial service contractors are not alone in this labor shortage.  It is true for most service industries, particularly those that pay minimum wage or slightly above. 

Customers demand high quality service, but want it at the best price they can get.  They shop for low prices.  Low prices are fine, but not at the expense of those who provide high-quality service. 

Won't you agree that our ability to find and keep high caliber employees has a lot to do with how much we pay them?  In turn, how much we pay them is directly related to the fees we charge our customers. 

In the late 1970s and early 1980s $4.00 per hour was common among janitorial contractors, and $5.00 per hour would attract and keep long-term employees.  During that same time, contractors were charging gross fees of $8.00 to $10.00 per hour for larger accounts.  Now that we are at the threshhold of the twenty-first century, has anything changed? 

Although the cost of living has skyrocketed during the past twenty years, should contractors continue charging their customers below standard prices, for example $12.00 to $13.00 per hour, while paying their employees minimum wage? 

What happens when contractors take the bold position of charging what is needed to adequately pay their employees, solve their customers' cleaning maintenance problems, and earn a profit for their companies?  GOOD THINGS HAPPEN: THEY HAVE HAPPY EMPLOYEES, HAPPY CUSTOMERS, AND HEALTHY PROFITS. 

When we realize we are at the start of the twenty-first century and conduct our businesses accordingly—by selling quality service at a reasonable price, instead of just selling low price—the industry as a whole will improve its image and its profitability. 

The manager of a nationwide business said he had lost faith in building service contractors because they talk a good story at first, but then fail to perform.  If he were talking in generalities, his statement may have been justified, but it certainly does not apply to most contractors.  The vast majority are truly concerned with providing the best service possible.  So what is the real reason for his loss of faith in janitorial service contractors? 

This manager was a low-price shopper who has gone from one contractor to another, but is never satisfied with the service.  It was suggested to him that he find a contractor that is first and foremost committed to quality and whose fees are commensurate to the service provided. 

In other words, a qualified contractor could solve his cleaning problems and take the worry off his mind.  The time spent supervising the contractor's work would more than pay for the difference in price, not to mention the peace of mind he would have knowing his building is in good hands. 

Here is my advice to contractors:  Offer your service at the price you know it's worth.  Your price should be in the mid- to upper-range for contractors in your area.  Too high and you won't get the business; too low and prospective customers will question your competence.  They will wonder if you are being honest with them or will be coming back later with a higher price after you get the contract.  Emphasize both features and benefits of your service to prospective clients.  Promise to deliver and explain clearly and concisely how you will deliver.  And of course knowing how you will deliver is a whole different subject.  It relates to the quality control aspect of your operational systems and to your customer service processes. We will discuss that in a future issue of this newsletter.

For more information on finding and hiring the right people go to CPI Business Development Courses and click on Human Resources Management.