With a 200% turnover rate in the custodial industry, many staff are replaced multiple times a year. This churn creates hidden costs that impact productivity, morale, and service quality.
Understanding these costs and adopting strategies to reduce turnover is key when choosing a custodial provider. Here are a few specific steps you can take:
Recruitment and Hiring Costs
High turnover demands constant recruitment, which is both time-consuming and costly. The Society for Human Resource Management estimates hiring a new employee costs $4,700.
Strategy: Work with custodial providers that focus on retention by offering competitive wages and benefits. Investing in staff reduces turnover and associated hiring expenses. (Society for Human Resource Management)
Training Costs
New hires need onboarding, which consumes time and resources. The Center for American Progress estimates turnover costs 21% of an employee’s annual salary, mainly due to onboarding and lost productivity.
Strategy: Choose companies with efficient training processes to integrate new staff quickly, minimizing downtime and ensuring consistent service delivery. (Center for American Progress)
Lost Productivity
Replacing experienced employees takes time. Gallup reports a 20-30% drop in productivity during the adjustment period, disrupting service quality.
Strategy: Partner with providers that prioritize strong managerial oversight. Engaged managers support new hires, stabilize the team, and reduce productivity losses. (Gallup)
Impact on Employee Morale
Turnover strains remaining staff, leading to disengagement and burnout. Gallup found engaged employees are 21% more productive than disengaged ones, highlighting the importance of team motivation.
Strategy: Seek a custodial provider that fosters a positive work culture, values employees, and promotes growth. A supportive environment improves retention and boosts performance. (Gallup)
With turnover averaging 200% annually, commercial cleaning businesses face mounting costs from recruitment, training, lost productivity, and morale issues. Partnering with a provider that emphasizes retention, strong management, and efficient training helps reduce these costs. This proactive approach ensures reliable, high-quality service while minimizing disruptions and inefficiencies.