Expert buying guide

Five Ways Facility Managers Can Reduce Labor Costs and Product Waste

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 the cleaning industry historically has high turnover rates.

59% of facility managers (FMs) expect their operating budgets to be flat or decrease in 2025. Over half of FMs spend  50% or more of their operating budget on labor. Facility maintenance costs are projected to rise by an average of 5% annually over the next five years, equating to a 25% increase by 2028 compared to 2023.

Attracting and retaining your cleaning and maintenance staff is difficult enough when there are plenty of workers to choose from. But with high turnover rates, 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 minimize 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.