Five Ways Facility Managers Can Reduce Labor Costs and Product Waste
Jeffrey Beland
Senior Facilities Marketing Manager
The biggest line-item expense in a facility manager's operating budget is labor. People cost money.
A
lot of
it.
So, how do you reduce labor costs?
That's a loaded question. The expected answer would be, “Cut salaries.” However, this option
isn't
viable, given
that seven out of 10 facility managers (FMs) reported a cleaning-staff turnover
rate
at 30% last year.
Attracting and retaining your cleaning and maintenance staff is difficult enough when there are plenty
of
workers to choose from. But with turnover rates as high as the data reveals, paying your staff less
money
isn't a recipe for your success.
The key to reducing your labor costs is to reduce your labor time. (Meaning, you minimise the amount of
time
it takes for one person to complete a single cleaning task.)
What if there were a way to do exactly that?
Or better yet, how about five ways to reduce labor time? Many smart and savvy FMs have
found success when implementing one or more of these practices into their operations:
#1. Reduce Product Waste.
#2. Use the Proper Cleaning Products.
#3. Standardize and Simplify Your Cleaning Processes.
#4. Prioritize Your Cleaning Staff's Safety.
#5. Leverage Vendor Expertise.
Let's look closer at each one.
#1. Reduce Product Waste
Limiting waste on cleaning and maintenance products isn't a novel tactic for reducing costs. However,
most
facility managers have historically regarded product waste on a purely macro level. Water conservation comes
to
mind. Recycling. Purchasing cleaning products in bulk.
The more focused approach to reducing product waste as a cost-saving measure requires exactly that: focus.
Instead of generally asking, “How do I reduce product waste?”,
many facility
managers take their product
list
and ask, “How do I reduce waste on every product I
purchase?”
It's this level of focus that makes the difference.
Paper Towels
Let's focus on a commodity product used every day, like restroom towels. According to
research
conducted by the Georgia-Pacific Professional division, automated
towel dispensers can reduce paper consumption by up to 50%.
They also require less maintenance than traditional options. When a roll runs out in an automated system, it
can
be easily replaced without any disruption or mess. This isn't always possible with manual systems, which
often
require staff to manually refill them with fresh rolls periodically throughout the day. This means lower
operational costs for facility managers and more money saved overall.
Soap and Sanitizers
What about reducing waste with restroom soap and sanitizers? Consider the
savings
of
smart soap dispensers, which can reduce hand-washing costs by up to 80%, while also reducing
waste
due
to their precise dosing capabilities.
Smart soap dispensers also come equipped with features such as auto-refill, wireless monitoring,
and
leak detection technology, which help cut down on labor costs associated with manual maintenance
tasks.
Also, many vendors offer refill subscription services which are designed for convenience and
cost
savings for facility managers purchasing in bulk quantities.
Dilution Control Systems
Facility managers are even finding ways to reduce product waste and labor costs
during the cleaning prep phase with dilution control systems. Thanks to its precise measurements
and
near-perfect accuracy rates, a dilution control system can
reduce labor time spent on mixing and
measuring chemicals by up to 30% compared to traditional methods.
With increased speed comes increased productivity. Facility managers who've adopted this
approach
find that their cleaning staff can accomplish more tasks in less time than ever before due to
improved accuracy from these systems.
#2. Use the Proper Cleaning Products
If reducing labor costs is a true objective, then focusing your operation's efforts on using the proper products for the cleaning task at hand must become a priority. That's because the right cleaning products and tools are usually the ones that clean most effectively and fastest.
Backpack Vacuums
The 21st century upgrade to traditional commercial vacuums, backpack vacuums
provide
more freedom of motion and eliminates the issue of the power cord getting in the way of the
vacuum
or your feet. Being more mobile makes dusting, cleaning vents and blinds, and vacuuming stairs a
breeze. This improvement in mobility makes cleaning more efficient and allows the user to clean
up
to four times faster than an upright vacuum.
Over time, the ability to vacuum faster will help you reduce labor costs. With an average
janitor's
wage of $13 per hour, you could save $85,800 per year for every 100,000 square feet your staff
cleans. Pardon the pun, but that doesn't suck.
Garbage Liners
Choosing the right can
liner for the receptacle can save you money and reduce
plastic consumption. Identify the type and weight of the content, the transport conditions and
size of the receptacle. Once that information is determined, the correct type, size and
thickness of liner can be chosen.
High-density
bags are used for paper and non-rough objects under
moderate transport conditions.
These bags are very strong and handle higher load capacities than low-density bags, but they
tear easier once punctured.
Low-density
bags are used for rough or sharp objects under tough
transport conditions. These
bags are very strong and are more resistant to tearing, but they handle lower load capacities
than high-density bags.
Automated Tools
An obvious example is automated floor-care
solutions like scrubbers,
sweepers
and
vacuums. They save substantially on
labor costs by reducing both
the time required for floor
care as
well as eliminating the need for manual labor. Robotic scrubbers can clean large areas in a
fraction
of the time it would take a human cleaner - without sacrificing quality or efficiency.
A study conducted by Facilities Management Magazine found that when facilities switched from
traditional manual cleaning methods to automated floor-care solutions, such as robotic
scrubbers,
their labor costs were reduced by up to 30%. And this isn't an isolated case; similar
results
have
been seen across multiple industries including healthcare, education and more.
Microfiber Cleaning
One of the key paradigm shifts in cleaning practices has been the transition
from
cotton
cloths and string mops to microfiber textiles. Several seminal
studies in the early to mid-2000s
demonstrated that not only were microfiber products more effective in removing microbes, dust, and other
debris from surfaces, they were also more user friendly and cost effective.
One study in particular was published in the American Journal of Infection Control in 2007. Its results
demonstrated that, without the use of a chemical disinfectant, microfiber mops achieved superior
microbial
removal (95%) compared to cotton string mops (68%)3.
A multi-site long-term care facility system documented a 129% increase in cleaning efficiency after
implementing microfiber cloths and mops to improve efficiency and standards.
Shop
Microfiber
Cloths
Microfiber mops weigh approximately five pounds less than conventional wet loop mops,
making them much easier to use. And in healthcare settings, the microfiber mop head is changed after
every
room is mopped, benefiting the custodial staff in two ways:
Shop Microfiber
Mops
1. The effort of wringing a conventional mop is eliminated.
2. As long as the used mop head is not put back in the cleaning solution, the custodian does not have to
change
the solution between rooms.
The latter feature is particularly attractive, as a full bucket of cleaning solution can weigh 30 pounds
or
more and must be lifted an average of seven times a day. Both characteristics significantly reduced
labor
costs.
#3. Standardize and Simplify Your Cleaning Processes
Long before facility management was invented, statesman and inventor Benjamin Franklin
coined
the phrase “time is money”. Franklin was far ahead of the curve with this notion because it
still proves
true
today. And as all smart facility managers can attest, decreasing the amount of time your staff spends on
each
task is the key to reducing labor costs.
Put another way, if reducing labor costs is why facility managers “do more with less”, then
standardizing
your
facility's cleaning processes is a big part of how to do it.
A cursory online search reveals a laundry list of actions to include when standardizing cleaning processes.
The
most common include:
- Reviews of current cleaning protocols to identify improvements
- Frequent and thorough training to help cleaning staff complete daily tasks faster
- Clear assignments with well-defined daily, weekly and project tasks
Yet, smart and savvy facility managers are now leveraging an often-overlooked element that greatly reduces cleaning time: the products they purchase and use for cleaning.
Ready-to-Dispense (RTD) Chemicals
These pre-measured doses of liquid cleaning agents ensure that the correct amount of detergent or
sanitizer is used every time, which helps maintain the consistency of your cleaning process. Using
RTD
chemicals
also eliminates the need for manual dosing, which reduces both labor costs and waste from
the
overuse or underuse of chemical products. And since these cleaning products are designed for single
use
only, there's no need to worry about contamination from previous uses.
RTD chemicals come in a variety of sizes, so you can choose the right dose for each job. This gives
your
cleaning staff better control over how much product is used each time - another cost saver.
Additionally, RTD chemicals come with color coding, so you know exactly what product is being used
and
when; this makes it easier to quickly identify products for reorder and streamlines training new
staff
on proper usage protocols.
Chemical Portion Packs
Another requisite to a standardized cleaning process is the chemical portion pack. These premeasured
packages of cleaning chemicals are designed for single-use applications (think dishwasher detergent
pods
but on a commercial/industrial level). Available in many shapes and sizes, each pack only contains
what's needed for one use - which means there's no need to measure out chemicals or worry
about
accidental spills or overuse.
Chemical portion packs contain premeasured amounts of product. Different employees can't use
different
amounts of product, so every application is consistent. This decreases employee training time and
ensures that your workplace meets safety regulations while staying efficient and cost effective.
Pre-Treated Wipes
Pre-treated wipes are cloths or papers that come pre-moistened with a
disinfectant
solution. They are designed to make it easier for users to quickly clean and disinfect surfaces
without having to mix, measure, or prepare any chemicals themselves. This means that once the wipe
is pulled out of its package, it is ready to be used right away. Time. Saved.
Since the same concentration of disinfectant is used each time, you can be sure that all surfaces
will be thoroughly cleaned and disinfected every time a wipe is used. This also eliminates any
confusion about what type of cleaner or disinfectant should be used on certain surfaces, as it
removes the need for multiple types of cleaning products in one facility.
Pre-treated wipes also add an element of versatility to your cleaning procedures; they're ideal
for
quick touch-ups or deep cleanings.
Training in Less Time
It should be noted another huge time and cost saver associated with simplifying your cleaning processes: cleaning staff training time. Consider the high turnover rate of cleaning staff coupled with the hours spent getting new employees acclimated to a new role. A simplified cleaning process reduces training time AND ensures cleaning across locations for multi-site businesses.
#4. Prioritize Your Cleaning Staff's Safety
Most FMs recognize the obvious value in providing a safe work environment for their
cleaning and maintenance staff. When employees feel safe at work, they're more likely to be
productive
and motivated. This in turn leads to higher employee satisfaction rates, which can result in
improved
morale and employee retention.
However, what most facility managers do NOT realize is that focusing on staff safety can
significantly
reduce labor costs.
Put simply, safety saves money.
Understanding the truth of this statement (and more importantly, acting on it) requires a closer
look at
some labor statistics coupled with a bit of simple math.
Injury Rates Matter
Janitors and cleaners rank third in the number of days away from work due to
nonfatal
workplace injuries.4 Only material handlers and heavy-truck drivers take off more days due to
injury.
However, that one factoid doesn't even begin to tell the full story. Eliminating the top two
occupations
from consideration reveals that janitors and cleaners missed work due to injuries at nearly
twice
the
rate of all other occupations.
Facility managers have always known that keeping things clean is a messy business. The stats now
appear
to prove it.
And because their injuries occurred during the daily performance of their jobs, these janitors and
cleaners qualified for and received workers' compensation
benefits. Every facility manager currently
reading this article is aware of their respective company's legal requirement to pay workers'
compensation insurance premiums.
But many companies pay thousands of dollars more in premiums than they have to.
A Quick Workers-Comp Primer
Workers' compensation insurance covers the cost of medical care, rehabilitation, and lost wages for
workers
if
they suffer a work-related illness or injury. The employee gives up the right to sue the employer for
injuries
caused by the employer's negligence. In return, the employee receives workers compensation benefits
regardless
of who or what caused the accident.
While the specifics vary by state, the formula used to determine a company's workers' comp insurance
premium
is
essentially the same:
The last variable in this formula, the experience modifier (EMOD), is the key to
reducing labor costs because it's the only variable that facility managers can influence.
Let's
repeat
that statement for dramatic purposes:
You have the power to raise or lower the experience modifier (EMOD).
The EMOD is a unique multiplier based on two factors:
The number of claims made by your employees over the last three years
The average number of claims for similar companies in your state
Historically, most EMODs fall between 0.7 and 1.5. EMODs less than 1 mean you've probably had
fewer
work-related injuries than comparable companies in your state. EMODs higher than 1 mean your
employees
most likely filed more claims. You can find your company's current EMOD by reviewing its most
recent
Workers' Compensation Experience Rating.
Your company's EMOD is determined by reviewing the total number of claims your employees made in the
last
three
years. One year with few or zero claims can help lower that number. Three consecutive good years with few or
no
claims can entirely replace your old EMOD.
Also, the frequency of incidents each year has a far greater impact on the EMOD than the severity of
injuries.
Insurance providers look for patterns of risk, not one-off catastrophes. Therefore, small yet frequent
claims
are weighted more heavily than large, isolated claims.
Taking Safety by the Hand
Obtaining a lower EMOD score requires minimizing or eliminating worker injuries. So, let's begin there -
specifically with the three tasks performed by janitors and cleaning staff that are most frequently
associated
with workers' compensation claims5.
1. Wet mopping
2. Waste collection and transport
3. Pushing heavy carts
Replace String Mops with Microfiber Flat Mops.
Traditional string mops weigh more than eight pounds during use. The constant mop wringing compounds strain
on
the cleaner's back and shoulders. Traditional mops tend to oversaturate the floor surfaces, which
requires
longer drying times and increases the risk of slipping injuries.
Flat mops that utilize microfiber pads weigh about three pounds during use. Their light weight alleviates
the
torque on the cleaner's back and shoulders, as well as reduces the strain when wringing.
Bonus perk: Microfiber flat mops can cover about 1,000 square feet more per hour than string mops.
Replace Fixed-Height Utility Carts with Ergonomic Models.
Cleaning and maintenance utility carts with fixed handles force taller or shorter users
into poor alignment. Bending up or down to reach handles causes spinal flexion and adds pressure on spinal
discs. The weight of the cart and its contents compounds the strain on the cleaner. Turning a loaded
fixed-handle cart is unwieldy and can increase the risk of falls.
Ergonomic carts with adjustable handles generally include a variety of positions to accommodate a wide range
of user heights without compromising body position.
#5. Leverage Vendor Expertise
It's a familiar cycle: When facing ongoing pressure to reduce operating costs,
many
companies trim their facility management budgets. Yet, once the financial outlook rebounds, spending
levels often remain low. This pattern forces facility managers to consider outsourcing as a
cost-saving
measure. Soft services, like cleaning and building sanitation, are particularly ripe
targets.
Weighing the pros and cons of outsourcing these services is not the purpose of this section.
However,
smart and savvy facility managers are looking outside their organizations for assistance with
reducing
labor costs. They're leveraging the decades of experience available to them in the form of their
vendors
and suppliers.
Instead of outsourcing the services, they outsource the expertise.
Utilizing Vendor Expertise
Your vendors and suppliers have years of experience in their respective fields and can often provide
valuable
guidance on how to reduce labor costs within your organization. They may also provide helpful insights into
what
their other customers are doing to reduce their labor costs.
The nature of facility management requires most FMs to be generalists. Yet, vendors in the cleaning products
industry are often specialists, meaning their business models are focused on one particular segment of
cleaning.
They are well-versed on the problems, solutions, hazards, and joys of their respective areas of expertise.
Reviewing the list below will most likely conjure a brand name you recognize (or even a current or
prospective
vendor) that specializes in that segment:
- Floor-care specialists
- Soap and sanitizer specialists
- Paper specialists
- Refuse storage and collection specialists
And do not discount the value of the research and development (R&D) most cleaning product companies possess. Part of their R&D department's very existence is to help facility managers succeed. It's how they win new customers and retain existing ones.
Inviting Outside Vendors In
One of the most effective ways to leverage your vendors' expertise is to bring them into the fold of your operation. Like a skilled auto mechanic, your vendors will require a thorough look under the hood, so to speak, to identify cost-saving opportunities and recommend solutions.
- Give them access to your daily operations.
- Schedule an on-site assessment with them.
- Have them interview your cleaning staff.
- Invite them to inspect what you clean, where you clean and how you clean.
Some facility managers may be a bit protective of their turf. They might feel that bringing in
outsiders
is too invasive of a procedure. But remember, doctors can't accurately diagnose a patient's
health
until
they've performed a complete examination.
So, consider it a wellness visit to manage your labor cost malady. Your operating budget will be
healthier in the long run.
Forming Strategic Partnerships
Quality vendors and suppliers aren't looking for the quick sale; they seek long-lasting
customer
relationships. Their company profits and bonuses are predicated on returning customers and repeat business.
As
such, few quality vendors would ever miss out on forming a strategic partnership with their facility manager
customers.
Any vendor or supplier can offer discounts on the products and equipment they sell. Look for the vendors
that
offer added value in the form of training, services, or warranties. By forming these partnerships, you'll be
able to reduce labor costs long term as well as in the short term.
- 2022 CMM In-House/Facility Management Benchmarking Survey Report
- Facilities Management Cost Trends Report 2022, CBRE Group, Inc.
- Rutala WA, Gergen MF, & Weber DJ. Microbiologic evaluation of microfiber mops for surface disinfection. Am J Infect Control 2007
- University of California, Berkeley, School of Public Health “Safe cleaning and disinfection during the COVID-19 pandemic: The role of Janitors in the safe re-opening of California”, 2021
- Mieke Koehoorn, Aleck Ostry, Shahadut Hossain & Judy Village. Injury risk associated with physical demands and school environment characteristics among a cohort of custodial workers, Ergonomics, 2011
