The Leading Metric All Contract Cleaners Need
According to Jordan Tong of Frantz Building Services of Kentucky, writing in BSCAI Smart Brief,
“While profit is a great lag measure, hours spent cleaning each night is the greatest predictor of profit. Therefore, having hours budgeted for each job — and monitoring those budgets on a daily basis — is the most effective way for you to manage monthly job profitability. This lead measure will allow your team to make changes quickly, meet goals on a daily basis, and predict monthly profitability with a high degree of accuracy.”
Cleaning contractors check daily budgets for many reasons.
Jordan is not alone! Many contract cleaners who use Contractor Workforce Management use daily budgets. Here’s why:
- Extra billing opportunity: Over budget may mean that your staff performed extra work outside of the contract that is billable
- Poor performance and retention: While hours worked do not guarantee a clean facility, being significantly under budget is a strong indicator of a problem that needs investigating before the customer notices
- Reduced budgets: Keeping your budgets up-to-date will help you keep overheads (managers, administration) in line with future revenue. If budgets are down 20%, overhead needs to decrease 20%
Download this sample Daily Budget Variance Report to learn more.
Contractor Workforce Management provides daily alerts in actual hours vary from budget hours by a user-defined percentage.
