Episode 1196 – Top 5 Countdown: Hourly, Percentage or Flat Rate? How to Pay Cleaning Employees
How to Pay Your Cleaning Employees: Hourly or Flat Rate?
In this episode of the podcast, Mike sits down with Enid Tate from Enid’s Cleaning Service, a seasoned cleaning business owner who’s been running her operation for over 25 years. Together, they tackle the tricky topic of how to pay employees in the cleaning industry—whether hourly or flat rate. Enid shares her experience with both systems and seeks Mike’s advice on how to structure pay in her growing company.
Enid's Journey in Cleaning
Enid didn’t start out as a business owner, but life threw her a curveball when she became a single mother and needed a way to support her family. She dove into house cleaning as a side job, and within a year, it became her full-time gig. Over the last 25 years, Enid’s Cleaning Service has expanded, providing residential and commercial cleaning across four counties in Indiana. Despite the ups and downs, the cleaning business has been her “baby,” and she hasn’t looked back.
Lessons from a Veteran Cleaner
When asked for advice, Enid’s top tip was a simple one: don’t take things personally. She encourages her employees to not let client complaints affect them emotionally. Of course, they should fix any issues, but at the end of the day, cleaning is just a job. There’s no need to lose sleep over a frustrated customer. Mike echoes this sentiment, reminding Cleaning Nation that, unlike doctors or brain surgeons, cleaning businesses don’t deal with life-or-death situations. Mistakes happen, and they’re not the end of the world.
Hourly vs. Flat Rate Pay Models
Enid, who currently pays her commercial employees on a flat rate system, is looking to expand that pay model to her residential cleaning team. The flat rate system offers predictable pay for both the company and the employees, which Enid sees as a win—especially in the slower winter months. However, she’s also concerned about convincing her team that this change is a good idea. Mike agrees that both pay models have their pros and cons but stresses that the key is simplicity. He recommends sticking to just two or three pay categories, avoiding overly complicated pay scales.
Managing Pay and Employee Accountability
The discussion moves into how to manage employee performance with either pay model. Mike suggests focusing on key criteria like time and attendance, customer satisfaction, and quality of work. He stresses that a simple, consistent system is best, with occasional bonuses or rewards to keep things fun and motivational. For example, a monthly raffle based on performance could keep employees engaged without the headache of constantly changing pay rates. Enid likes the idea, noting that it brings excitement and gives her the flexibility to focus on different areas of improvement each month.
Lightning Round: Quick Tips from Enid
To wrap up the conversation, Enid shares some quick wisdom in the lightning round. Her best advice? Don’t take things personally—whether it’s customer complaints or the ups and downs of the business. When asked about the biggest mistake she made, Enid laughs and warns against doing your own taxes. Mike chimes in, saying that DIY payroll and taxes are a huge mistake and strongly advises leaving that to the pros. Lastly, Enid emphasizes the importance of great customer service—something she’s learned over the years that can make or break a cleaning business.
In the end, Enid’s experience and insights serve as a reminder that running a successful cleaning company is all about adaptability, simplicity, and a focus on customer satisfaction. Whether you’re deciding between hourly or flat rate pay, or navigating employee performance, the key is to keep it straightforward and always keep the big picture in mind.