The Changing Cost of Commercial Cleaning
In April 2016, the Government introduced the National Living Wage requiring employers to pay anyone over the age of 25 a minimum of £7.20 an hour, this has increased each year and this April it is now £8.21 per hour.
When the National Living Wage was introduced it received praise and criticism in equal measure, but there is no doubt it has had an impact on the health of small UK businesses.
Although small business owners have largely met the challenges posed by the National Living Wage and concern of job losses and reduced hours for workers haven’t materialised, the Federation of Small Businesses chairman Mike Cherry acknowledges “The impact of a rising rate will vary from sector to sector. Labour-intensive industries with fine margins like childcare and hospitality find increases harder to manage and less room for manoeuvre to absorb increases.”
Although the introduction of National Living Wage, alongside pension auto–enrolment has placed extra financial burdens on small to medium businesses, there are clear benefits for companies paying this wage to their cleaning operatives, who traditionally have been one of the lowest paid workers in the UK. Staff feel more valued and respected, so in turn are more motivated, reliable and efficient in their cleaning. It also encourages increased staff retention, which helps provide an improved and consistent service for clients.
It’s essential that any business is up to date with policy as non-compliance with the National Living Wage could result in a criminal offence and a financial penalty. Any employer found guilty may also be disqualified as a Company Director for up to 15 years.
As a labour intensive SME within the cleaning industry, here at Cleaning Technique we have experienced the challenge of inflation of wages, whilst still maintaining our high standards of cleaning. Every effort is made to absorb much of the cost ourselves, but there is an inevitable impact and ripple effect to our clients. The Living Wage is always identified within our quotations.
Our company advocates workers receiving a realistic wage, so we pay the higher rate of the National Living Wage irrespective of their age, not wishing to profit from younger workers.
If a client wants us to pay their cleaner the Actual Living Wage
(a higher hourly rate independently calculated every year and based on the real cost of living) this can be factored into their quotation, so the extra paid all goes to the cleaning operative.
If you would like a quotation for your business or office cleaning requirements please contact us