Cleaning Business Dilemma – Subcontractors Or Employees?
As a small business owner of a cleaning company, one of the challenges you faces on how to run a cleaning business is the cost-effectiveness of your decisions. Since the house cleaning business is a business that involves the selling of services rather than products, it is quite difficult to decide as to whether you should hire employees or simply work with subcontractors.
Having employees and personnel in your company does have its own benefits too. For one, you can have some people that you can rely on, especially on how to run a cleaning business – during the times when you are not around. Plus, these are people whom you have trained, thus can do the job as you expect it to be done. The only thing about having employees is that aside from paying them their salaries, which by the way, must not be below the minimum wage set by the government, you also have to provide them with their other employee benefits such as sick leave, vacation leave with pay, and other allowances. In other words, aside from their salaries, you are obliged to provide them with their employee compensations as required
by the government.
However, if you are a good employer, most of your employees will definitely stay with you and you will have skilled and experienced staff in your company, which is a plus point on your cleaning business’ marketing. So basically, it’s a give and take situation – you pay them, provide them their compensations, and in return, you get reliable, skilled, and experienced staff that can make your company.
Subcontractors are independent contractors that you hire only for a certain job. They are not employed by you. So you simply pay them their fee, and that’s about it. However, having subcontractors means having the same company to work for you, but the people they send are not the same. The only focus is to get the job that you hired them for, done. If you are just starting out, you can hire subcontractors to help you accommodate your cleaning jobs. However, when you are fully operational with a steady pool of clients, you might be better off with employees – it is financially more practical too.
On the other hand, hiring subcontractors to accommodate the extra services that you offer is also a good idea, since these services are not asked for often. Plus, your subcontractors can also be one of your cleaning business’ marketing tools – they can tell their other clients about you too.
It’s your house cleaning business and you call the shots. Just see what is practical and cost-effective for you and go for it.