How Cleaning Contractors Can Come Out of Covid-19 Stronger

Commercial real estate and retail have taken the brunt of the blow from COVID-19. No one really knows how, or if, those facilities are going to rebound.

One thing is for sure, companies are looking at the amount of office space they need and are looking at hybrid models. Here at MITC, we have reduced office space by 50  employees and allow most staff to work from home. Car dealerships are reducing show room space as more customers now pre-order on the internet. Here are a few things your company can do to come out of Covid stronger than before:

  1. Focus efforts on critical infrastructure business, as defined by the Department of Homeland Security. Examples of these industries are distribution, logistics, healthcare, manufacturing, biopharma/life sciences, etc. Amazon warehouses and distribution centers are an obvious example. Education (schools, colleges) will most likely stay fully open long term.
  2. Large commercial facilities have been outsourcing cleaning services for years. The facilities that still tend to have some degree of in-house staffing are universities, K-12 municipal schools, private schools and municipal buildings. Potential liability as it relates to Covid-19 and worker compensation makes outsourcing more attractive. Offer supplementing the in-house staff.
  3. Make sure customers understand how you use technology. They are more likely to be interested in how contractors use technology for service delivery. Many of our customers make sure customers know about their No Show Alert system. Download the Competitive Advantages fact sheet to learn more.
  4. Upgrade your hiring and on-boarding processes. There are a lot of employees not in the labor market due to Covid-19, but there is also a lot of churn. Make sure your hiring process is competitive.

Vaccination Mandate Announced

The U.S. government has announced a broad plan to increase Covid-19 vaccination rates in the U.S. as cases plateau at a high number, pressuring private employers to immunize their workforce, as well as mandating the shots for federal workers, contractors and employees of health-care facilities that receive Medicare or Medicaid funding.

  • The USA is reporting an average of 151,500 new cases per day, according to data compiled by Johns Hopkins University, hovering around levels seen in late January. The USA is also reporting an average of about 1,500 Covid deaths per day, according to Hopkins’ data, in line with numbers seen in March when the U.S. was coming down from its winter surge.

The plan is intended to get more people vaccinated, allow schools to reopen safely, increase testing, improve care for patients and boost the economic recovery.

  1. Federal employees will be required to get a Covid vaccine, with no option for regular testing.
  2. The executive order will extend to contractors that work with the U.S. government, impacting a total of 2.1 million employees. Previously, all federal employees to get vaccinated or submit to a series of rigorous safety protocols.
  3. The Department of Labor will issue a rule that requires employers with more than 100 employees to mandate vaccines or testing, according to officials.
  4. Health-care facilities that get Medicare and Medicaid funding to have staff fully vaccinated.

Overall, the new vaccination requirements will cover about 100 million employees, affecting two-thirds of U.S. workers.

  1. As part of the multi-pronged plan to combat Covid, the US is increasing the average weekly pace of shipments of free monoclonal antibody treatments for Covid by 50%. More than 800,000 doses were shipped in July and August.
  2. The Transportation Security Administration is also doubling fines for travelers who refuse to follow a federal mask mandate for air travel. Fines will soon start at $500 and go up to $3,000 for repeat offenders.
  3. The USA additionally plans to call on all schools to set up regular testing when Covid is spreading in a community for students, faculty and staff who aren’t fully vaccinated, according to an administration official.
  4. The Department of Education will make additional funding available to help local school districts backfill salaries and other funding where it has been withheld by state leaders for implementing Covid safety measures.
  5. $2 billion will be put towards the production of 280 million rapid and at-home Covid tests using the Defense Production Act. The plan expands the USA’s free Covid testing program to 10,000 pharmacies nationwide and provides community health centers and foodbanks with 25 million free rapid tests to distribute.
  6. Private businesses will also distribute discounted tests: Walmart, Amazon, and Kroger will start selling at-home Covid tests “at their costs for the next three months”. The discount will reportedly make the tests 35% cheaper for consumers.

Only just over 176 million Americans, or 53.3% of the total population, are fully vaccinated, according to data compiled by the Centers for Disease Control and Prevention.

7 Million Lose Unemployment Benefits

More than 8 million people now have no unemployment compensation at all, while another 2.7 million lost the $300 federal weekly boost but will continue receiving state payments. They join the roughly 2.7 million cut off from some or all of their benefits in June or July after 24 states opted to terminate at least one of the programs early.

Though there are 10 million job postings in the US, hiring is not expected to improve dramatically, at least not right away, experts said. The labor markets did not greatly improve in the states that ceased benefits over the summer.

Benefits are not the only reason for hiring problems, though. Disrupted child care and health concerns are also major factors.

More than 5.5 million people said they are not working because they are caring for children who are not in school or day care, according to the most recent Census Bureau Household Pulse Survey, conducted in the first two weeks of August. Another 3.2 million said they are concerned about getting or spreading the coronavirus.

Economic uncertainty is also an issue. People are being thrown into the labor market at a time when the Delta variant is affecting consumers and businesses, said Andrew Stettner, senior fellow at The Century Foundation. The uptick in Covid-19 is prompting people to pull back on traveling and eating out. 

“We’ve protected people up until now from the real damage of long-term unemployment,” Stettner said. “Now we have to see whether this job market is really strong enough to keep people out of long-term harm at a time when people don’t have some of the other protections — like the housing protections — they had during the pandemic.”

Coronavirus Concerns Remain High for Some

Fear of the coronavirus has kept some from returning to the labor market. CNN conducted the following interviews.

Rebecca Ruiz started homeschooling her two young granddaughters after her husband died of Covid-19 earlier this year. Ruiz, who has custody of the girls, is worried they could bring the virus home to her – a chance she’s not willing to take.

After losing her husband to Covid-19, Rebecca Ruiz is home schooling her two granddaughters because she fears they could catch the coronavirus at school.

The $900 she received in unemployment payments every two weeks, coupled with Social Security benefits, helped the family survive – especially after they lost her husband’s income from his job at a supermarket. “Right now, all I can do is make my pennies stretch,” said Ruiz, who did office work for a trucking company that shuttered at the start of the pandemic. The California resident is now hoping to find a position that will allow her to work from home.

Meanwhile, some laid-off Americans report they aren’t getting interviews or offers despite sending out a multitude of resumes.

David Grein, who has worked in hospitality for more than 30 years, has been applying for jobs throughout the pandemic after losing his position as a chef at a retirement community in early 2020. Most of the postings call for less experience and offer a lower hourly wage than he’s made in the past. Grein, who turned 64 on Monday, suspects his age also plays a factor.

Though he’s applied for jobs throughout the pandemic, David Grein is having trouble finding work as a chef.

“I’m at the point that the gun is to my head regarding income. I have none,” he said, noting that he also needs employer health insurance to cover his diabetes care.

Covid 19: Renewed Disruption to Businesses

The Wall Street Journal reports growing disruption for business, schools and colleges in articles on Saturday, August 14th.

  • Only 39% of small businesses expect economic conditions to improve in the next 12 months, down from 50% in July and 67% in March in a survey of 560 business.
  • Events are being increasingly cancelled. A Brooklyn, New York company reported 5 cancellations and postponements last week.
  • The University of Michigan index of consumer sentiment plunged 13.5% since July, one of the sharpest declines since the index began.
  • 3,424 students at Pearl River County District in Mississippi are reverting to virtual learning because the number of positive cases among student and teachers doubled within 4 days .

To read the articles in full, use these links:

https://www.wsj.com/articles/delta-variant-drops-small-business-confidence-to-lowest-level-since-march-11628868656

https://www.wsj.com/articles/covid-19-cases-surge-as-students-return-to-schools-11628897822

https://www.washingtonpost.com/business/2021/08/06/delta-variant-moms/

178 Workers Suspended for Refusing COVID-19 Vaccination

Workers at a hospital in Houston, TX have been suspended, and could potentially be fired, due to a company mandate requiring all hospital employees to receive the Covid-19 vaccine. This mandate has sparked protests from employees who have been suspended.

According to the Detroit Free Press, Houston Methodist CEO Marc Boom said the 178 workers represent less than 1% of almost 25,000 employees.

“We are nearly 100% compliant with our COVID-19 vaccine mandate,” Bloom said in an email to staff Tuesday. “Houston Methodist is officially the first hospital system in the country to achieve this goal for the benefit of its patients.”

Bloom said 27 of the 178 suspended workers have received one dose of vaccine, and that he is hopeful they will get the second dose. All are suspended for two weeks and are set to be fired if they fail to be fully vaccinated.

“I wish the number could be zero, but unfortunately, a small number of individuals have decided not to put their patients first,” Bloom said.

An additional 285 employees received a medical or religious exemption, and 332 were granted deferrals for pregnancy and other reasons.

The Equal Employment Opportunity Commission has issued guidance saying employers have the right to require COVID-19 vaccination, citing a “direct threat” to others in the workplace.

Bloom said the science, along with data from 300 million doses already distributed in the U.S. alone, proves the vaccines are safe and necessary “if we are going to turn the corner against COVID-19.”

The number of positive cases and hospitalizations continue to drop across the nation continue to decline, he said, proving the vaccines’ effectiveness.

Houston Methodist isn’t the only place requiring vaccines, though. Hundreds of colleges, universities, nursing homes and hospitals are requiring staff and students to be vaccinated. These mandates have been challenged by some and praised by others, which is to be expected as the world recovers and opens up again.

Tax Credits for Vaccination Time Off

The Internal Revenue Service and the Treasury Department announced further details of tax credits available under the American Rescue Plan to help small businesses, including providing paid leave for employees receiving COVID-19 vaccinations.

Eligible employers, such as businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, can receive a tax credit for providing paid time off for each employee receiving the vaccine and for any time needed to recover from the vaccine. For example, if an eligible employer offers employees a paid day off in order to get vaccinated, the employer can receive a tax credit equal to the wages paid to employees for that day.

The American Rescue Plan Act of 2021 (ARP) allows small and midsize employers, and certain governmental employers, to claim refundable tax credits to reimburse for the cost of providing paid sick and family leave to their employees due to COVID-19. The ARP tax credits are available to eligible employers that pay sick and family leave for leave from April 1, 2021, through Sept. 30, 2021.

The paid leave credits under the ARP are tax credits against the employer’s share of the Medicare tax. The tax credits are refundable, which means that the employer is entitled to payment of the full amount of the credits if it exceeds the employer’s share of the Medicare tax.

Improving Communication in Your Company

Just like any other relationship, healthy business relationships are based on effective communication. In fact, organizations with effective internal communication practices are three and a half times more likely to significantly outperform their peers, according to a Towers Watson report. Communication helps managers at these organizations understand what motivates their employees and impart the company’s vision to them. It can also increase staff engagement levels, thereby improving the quality of work customers receive.

Why Effective Communication is Important

It improves service. Communication between managers, staff, and customers leads to quality services. Not only is it the cornerstone of a positive work environment that motivates employees, it also helps clients have confidence in the company.

It builds great teams. Unlike retail stores, contractors do not always work side-by-side. Many work at scattered job sites. After a while, workers can start to feel disconnected from the rest of the company, as if they work alone. Regular communication is critical for reminding these employees that they are part of a team.

It boosts productivity. The better your communication, the less time you spend resolving conflicts and sorting out misunderstandings. You and your team can focus more of your time doing meaningful work. Furthermore, employees can start each day confident they know what they are doing and how it contributes to the company’s goals.

Why Use Contractor-Specific Communication Software?

Detailed reports. Unlike emails, texts, or phone calls, communication software maintains a trail of records for you. You can easily run reports to see all supply requests, incident write-ups, requisitions, and other communication types sorted by employee or job. You never need to fear losing an incident report or any other type of communication.

Automatic list maintenance. Need to send a message to those working at a particular location? Rather than shuffling through the schedule to find the names, try using a messaging application that finds those people for you based on your criteria. For example, you can alert everyone who works at a specific job site about new procedures that affect them by selecting that job site, instead of talking to everyone individually. This ensures that each message goes to the right people, while saving you time.

Fewer expenses. Contractor-specific communication software is often less expensive than a professional email account. On average, organizations can expect to pay at least $5/month per person for email addresses. But communication software, which is different from email, can cost just a fraction of that amount. Moreover, your employees can be automatically enrolled upon hire and removed upon termination — no pesky list management necessary!

Why not use a free email provider like Gmail, you may ask? While cost is no concern with free email accounts, they simply don’t have any of the required features contractors need for effective communication. For example, they are cumbersome to manage, they do not capture the location of the sender (to confirm the job site), and their use cannot be restricted. And since turnover is so high right now, companies could spend a lot of time maintaining accounts.

Conclusion

In today’s fast-paced world, communication plays an essential role in our personal and working lives. For contractors, the right communications platform will connect managers, employees, and administration to streamline services. When everyone in the company is engaged and connected, retention rates and customer experience improve.

Mobile Technology: Top 3 Business Benefits

Contractors are always striving to navigate their ever-changing environments without falling behind the competition. This requires flexibility, which is why many contractors are employing mobile technology. Gartner reports that by 2020, more than three-quarters of field service organizations with over 50 users will use advanced mobile apps for their work.

Why are so many companies using mobile technology?

1. Better Customer Service

When managers have real-time insight into every job, no matter the location, they can spot potential problems before they start. For example, if an employee no-shows a client, managers can get an automated alert and mitigate the problem before the customer learns about it. Or if a new employee forgets a job responsibility, managers can require everyone to check off task lists on their smart phones before clocking out. These types of features help contractors deliver the highest-quality service to every customer.

2. Higher Employee Engagement

Contractors who work at unsupervised client sites can feel a little disconnected from the company. But mobile technology keeps them connected to their coworkers and managers — no phone calls necessary! Instead of playing phone tag or waiting days to get an answer to a question, employees can check their schedules, request time off, submit work orders, complete inspections, and more in real time from their smart phones.

3. Future-Minded Operations

Technological advancements are changing businesses worldwide. If you want your business to operate more effectively tomorrow than it does today, you need to implement solutions that promote flexibility and communication. Find a system that connects managers, employees, and clients more easily. Make sure it reduces the administrative load rather than increasing it. And take advantage of the prevalence of smart phones to propel your business further.

What the Cheesecake Factory Lawsuit Means for Contractors

In a landmark case for contractors, a California court ruled that Cheesecake Factory Restaurants Inc. is jointly responsible for the labor violations of its contracted cleaning company. This ruling highlights the importance of effective workforce management tools for contractors.

An 18-month investigation found that subcontracted janitors in eight California Cheesecake Factory restaurants were denied breaks and overtime pay. The Los Angeles Times reports that each janitor “logged up to 10 hours of unpaid overtime each week because the workers were not allowed to leave after their eight-hour shift until a Cheesecake Factory kitchen manager reviewed their work.”

Cheesecake Factory and its cleaning contractor Americlean Janitorial Services Corp. are jointly liable for $4.2 million to cover the damages. Americlean’s subcontractor, Magic Touch Commercial Cleaning, is also responsible for part of the cost.

How the Ruling Raises the Bar for Contractors

The Cheesecake Factory lawsuit shows that a contractor’s workforce management shortfalls create risk for the hiring business, not just the contractor. Businesses do not want to acquire risk from a contractor. And they shouldn’t have to! But as the Cheesecake Factory case illustrates, companies cannot safely assume their contractors are upholding FLSA requirements. Since the ruling made a splash in the national headlines, businesses will be more careful about the contractors they choose.

This means you, as a contractor, must ensure your workforce management solutions are smart and efficient. Maybe you don’t mind using a poor solution to track hours and overtime, but your prospective clients will mind. Your competitors will look a lot better than you if you aren’t using effective workforce management tools!

Emphasizing Your Workforce Management Strengths

In our experience with hundreds of contractors who used all kinds of workforce management solutions, we have noticed a few trends. Successful businesses usually take three steps to strengthen their business operations.

The first step is to get rid of paper processes. These offer no visibility into your workforce. Problems that arise during the day can only be caught afterwards. But with automated solutions like time and attendance, you can receive alerts when someone hits overtime, fails to clock in/out, or anything else that matters to your business.

The second step is to enable employee self-service. With self-service, your employees can access their attendance records, pay stubs, schedules, and benefits from any web-enabled device, any time. This allows them to clock in/out onsite  If they encounter a problem at the work site (e.g. they must stay past their shifts to wait for a kitchen manager, as in the Cheesecake Factory case), they can escalate the issue to managers immediately.

The third step is to integrate time and attendance with payroll. This is a simple way to ensure your employees are correctly paid. If an employee claims you made a mistake, you can compare his or her attendance and payroll history instantly. This protects you from errors, and it has the added benefit of eliminating data entry.

Stable workforce management processes are attractive to clients. They are more likely to hire you over another contractor if you can prove you are not a risk to their bottom line. With Contractor Workforce Management solutions, you can put your best foot forward!

Time Theft: A Contractor’s Hidden Payroll Expense

When most people hear about company theft, they picture an employee smuggling monitors home or padding expense reports. Most people do not think about the often subtle act of time theft. Perpetrators may consider it a harmless way to maximize time off the clock, but it can severely hurt an organization in the long run.

What is Time Theft?

An employee commits time theft by accepting pay for time not worked. They can do this either by working the payroll rounding rules or by fudging timesheets. For example, if Elise is paid in 15-minute increments, she could clock in 7 minutes late and clock out 7 minutes early without receiving a penalty. Employees who fill out paper timesheets have even more opportunities to record false hours.

A little stolen time, which is not a big deal, turns into a big deal over time. If Elise continues her habit of stealing 7 minutes on both ends of the day for 5 days, she will have over an hour of stolen time. In the course of a year (assuming she works 5 days a week), that adds up to about 60 hours. With a $15/hour pay rate, the total value of her stolen time will hit approximately $900. If Elise is not the only employee to do this – if perhaps 30 employees do the same thing – the stolen time value skyrockets to $27,000.

Wondering if you need to worry about time theft in your company? Well, time theft is more widespread than you may think. The American Society of Employers estimates 20% of every dollar earned by a US company is lost to employee time theft. Furthermore, the American Payroll Association says 75% of companies lose money from buddy punching, the most proliferous form of time theft.

Factors that Encourage Time Theft

Contractors can inadvertently encourage time theft in several ways. These three factors are not the only causes of time theft, but they are the most prevalent.

Paper timesheets

Paper timesheets provide no security. It is incredibly easy for employees to write fraudulent times. Even if they do not intentionally steal time, they may not realize how much they round and how quickly it adds up.

Poor employee engagement

Unengaged employees are not interested in their work or the good of the company. If presented with the opportunity to work less without suffering wage loss, their disinterest in the company may fuel their temptation to take the opportunity.

Poor scheduling 

If an employee is overworked, has too little time between shifts to take a proper break, or is scheduled when unavailable, the employee is more likely to show up late for work or take extended breaks. This type of time theft is not always malicious – overtired employees may just have a hard time staying on schedule.

How to Prevent Time Theft

If you realize that your company enables time theft, you can take several simple steps to reverse the error.

Biometrics

Biometric devices, such as fingerprint readers, eliminate all kinds of fraud. Buddy punching is impossible,  unless someone has detachable fingers, and so is lying since biometrics record the exact punch time. Fingerprint readers can also operate without an internet connection, so employees cannot make excuses about poor connectivity for missing an attendance record.

Management alerts

Automated alerts help managers detect time theft at the earliest signs. An effective time and attendance solution will notify managers when an employee clocks in late, clocks out early, or takes too long of a break. Since a few of these instances are permissible, an effective solution will also run reports on attendance records over time so managers can see whether certain employees have more offenses than others.

Engagement efforts

Re-engaging disinterested employees will do wonders for time and attendance compliance. If you suspect time theft in your company, provide contexts to evaluate employee engagement. Maybe your employees don’t understand the larger purpose of their work, so they are looking for ways to get out early. Or maybe they don’t have enough paid time off, so they feel burnt out. The results of an employee engagement survey might reveal the underlying reasons for time theft at your company.

Effective scheduling

A scheduling solution should have more functionality than pen and paper. It should filter available employees by availability, preferences, and hours so managers don’t overload one person while another begs for more work. Good scheduling software will also ensure employees have enough break time between shifts and sufficient travel time between locations.

Conclusion

Time theft is a nearly-invisible cost on your company’s payroll that can hinder organizational growth and employee morale. But solutions do exist to help your company spot time theft and stop it at the source. A productivity increase of 20% is worth the effort!