Transcript on how to pay a manager to run your cleaning business
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Hey, I’m Matt, your commercial cleaning CEO. In less than 10 hours per week, I built my commercial cleaning company to over seven figures in under five years. By the end of this video, you’ll learn:
- How to set up a compensation package like a CEO for your management team.
- The different compensation features available for managers, including what has worked in my company.
The Power of Compensation Alignment
As the CEO, your job is to align your team’s goals with the mission of your company. Compensation plays a key role in influencing behavior.
A Mistake That Cost Me Half My Business
In 2019, I hired a manager and structured their pay entirely around profitability. The more they saved, the more they earned. The result? Labor was cut too aggressively, equipment was neglected, and quality plummeted. I trusted the reports I was given, but in reality, clients were unhappy, cleaners were quitting, and we lost nearly half the business. The manager, however, kept earning more because of the incentive structure.
The Right Approach to Compensation
Instead of short-term profitability, your manager should be focused on customer retention and buying back your timeby handling operations. Compensation should be structured to reward these priorities.
Three Main Compensation Components
- Base Salary (Structured for Performance)
- Floor: A low, fixed base (e.g., $24,000/year for full-time managers).
- Revenue Share: 3–5% of revenue, so their earnings grow as the company grows.
- Minimum Threshold: A guaranteed minimum to ensure financial stability (e.g., $40,000/year minimum, with revenue share increasing earnings over time).
- Benefits (Attract and Retain Top Talent)
- Unlimited PTO: As long as performance is strong, time off is flexible.
- Remote Work Flexibility: When possible, allow work-from-home options.
- Paid Holidays: Simplify payroll by including holiday pay.
- 401(k) Matching: Options like dollar-for-dollar matching up to 3%.
- Healthcare Options: Standard insurance (e.g., Blue Cross, United Healthcare) or cost-sharing plans (e.g., Sedera, Liberty Health Share, Direct Primary Care memberships).
- Eligibility Requirements: Require a tenure period (e.g., 3–6 months) before benefits apply.
- Bonuses (Performance-Driven Incentives)
- Profitability Bonus: Only paid when budget targets are met (e.g., an extra 1–2% of revenue or a fixed amount like $500–$1,000/month).
- Customer Satisfaction Bonus:
- Pay $20–$50 per scheduled client meeting.
- Bonus for meeting completion targets (e.g., $1,000 for 90–100% completion).
- Incentives for generating customer reviews.
- Staff Retention Bonus:
- Rewards for maintaining low turnover.
- Incentives for successfully hiring and training new employees.
Hybrid Manager Option
If your business isn’t large enough to afford a full-time manager, consider a hybrid manager who cleans part-time (20 hours/week) and manages part-time, earning a cleaner’s wage plus management incentives.
Final Thoughts
By structuring compensation around customer retention, operational efficiency, and long-term growth, you create a win-win scenario where your managers are motivated to scale your business while reducing your workload. This approach builds a sustainable and profitable commercial cleaning company that thrives for years to come.
