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Franchise Blog

First Rate House Cleaners, Turnover, & Increasing Profits in a Recession - PART II

  Frank Berger  |    Sep 2, 2009 6:00:16 AM  |    Founders Blog,  |    Franchise Opportunities

First rate people hire first rate people.

Second rate people hire third rate people.

Good house cleaners are profit generators! The secret is to keep the good cleaners fully engaged and happy, while letting the house cleaners that are not skilled at WOWING THE CUSTOMER find somewhere else to work. If you do it right there will be turnover, as you are getting rid of the underperforming housecleaners.

A few years back a Marriott study revealed that a 10% decrease in employee turnover resulted in a 3% decrease in lost Customers. For Marriott that meant $100 million increase in revenues. Small maid services aren’t in the same league as a Marriott, but you can easily measure turnover. Turnover is a metric that should be on every business owner’s radar screen.

Perhaps turnover is too broad a term. There is good turnover and bad turnover. A 10% turnover of your best maids would be devastating to your business. A 10% turnover of your worst house cleaners would be a good day. The secret it to get the wrong people out and the right people in. Jack Welch understood this, and acted on it by implementing his Rule of 10%. He required everyone to be evaluated continuously. GE rewarded the top 10% and got rid of the bottom 10%. This put GE in the position of controlling what part of its workforce was turning over. Anyone running a small business can appreciate the simplicity of this.

House cleaners who care, like to be around other cleaners that care. Try to create an “Olympic Team Elitist” mentality for your Home Cleaning Service. Why not? Isn’t there honor in a job well done? I have been on winning teams and losing teams in the past. You actually work harder on the winning teams and are excited to do so. If you allow your cleaning service to become a den for the discontent, your best cleaners will find work elsewhere…leaving you to manage the malcontent cleaners who have no interest in leaving your cleaning company. Why would they want to leave…they love getting paid to complain!

If you want your business to earn more profits in these hard times, get rid of the housecleaners that could care less about you, your company and your Clients. Turnover the bottom 10% & increase your bottom line profitability. Your Clients will thank you.

 

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