When Cleaners Reach the Top of Their Pay Grade

Even in an industry with a notoriously high turnover rate, it's possible to retain employees for years or decades. We've shared before how hiring for growth can help you find valuable employees, and we've also given tricks for getting your star performers to stick around.

An unfortunate downside of developing an experienced team is having more employees reach the top of their pay grade. While it's essential to reward top performers to keep turnover low, the reality is every position has a dollar cap. There's a maximum amount you can pay even when if someone is worth more.

That's why it's so important to plan ahead when setting your pay scales. You can't have employees hitting their max very early in their employment. A good pay scale will have enough steps to allow flexibility for giving raises.

To keep long-term employees happy after they reach the top of their pay grade, you need to get creative.

What to do when a Cleaner is at Top of the Pay Grade

What to Consider When Employees Inch Closer to the Top of Their Pay Grade

Give additional responsibilities

Providing an employee with the opportunity to take on a bigger role can make them feel more valued, and that is often as or more important than money. These responsibilities may mean different things for different employees. 

An efficient technician might value the opportunity to train new employees on your equipment. High-potential employees are likely to appreciate the opportunity to learn new skills, particularly the kinds they could later use if they are elevated to management. Many employees enjoy having a mentor who is management or to mentor new hires.

Also, whenever possible, move employees into supervisory roles as they come open rather than hiring from outside. This allows them to move into a new, higher pay ceiling that will (hopefully) take them years to reach. Just make sure they are qualified for a supervisory role.

Offer bonuses, not raises

When it's clear an employee wants a financial reward more than anything else, consider offering occasional bonuses. These can be given for meeting any set of specific requirements you establish. Some of our members have given bonuses for things like reaching monthly or quarterly performance goals or zero absences within a certain time frame.

It may be useful to consider a retention bonus at the end of each year of employment. You could also offer a referral bonus to employees who help you find great new hires. Not only does this reward employees, it's also a great way to elevate the quality of applicants you interview (your employees know your company and are more likely to refer people who fit the culture).

Finally, consider a commission-based bonus system for anyone who is involved in selling (not just dedicated salespeople). Supervisors, technicians, and office workers who interact with your customers may enjoy this type of incentive.

Offer better benefits and perks

Some business owners are surprised to learn that many employees want more perks, not higher pay. In fact, a 2015 survey by Glassdoor reported 4 out of 5 employees preferred additional benefits to a pay increase (this was most true among women and employees younger than 34).

What types of perks are most desired? The top 5 in that survey were healthcare, vacation/PTO, performance bonus, paid sick days, and 401k. Many of these benefits are cost prohibitive for smaller companies. Don't fret if you can't add them all to your team's compensation package. There are other options that don't come with a high price tag for you. Sometimes you can go with a less expensive alternative. For example, we added a Simple IRA Plan for our employees versus the more expensive, more complicated 401k. Our employees were thrilled that they now have an investment plan as a benefit.

Numbers 6 and 7 on the Glassdoor list were flexible schedules and office perks (free lunch, casual dress, etc.), which you may be able to implement at little to no cost. Other ideas include an option to work from home sometimes (perhaps for office personnel), off-site team-building events, educational seminars, sponsored sports teams, small holiday and/or birthday gifts, access to corporate discount programs for phone service or other technology, gym passes, or annual learning stipends.

Prepare for the plateau

Have conversations with your long-term employees well in advance of them reaching their pay ceiling. Waiting until it happens will make the news even more difficult to deliver or receive. You don't want your best employees wondering why they should bother if they are only getting cost-of-living raises.

Help them understand ways they can change their compensation. If you implement the ideas mentioned above, make sure they know they are empowered to take advantage of them. Also, if there are advancement opportunities, outline the steps they need to take to be considered.

Also, in rare and unique circumstances you may want to provide a pay increase beyond their designated scale. This may be important to keep a strategic hire, such as someone with unique and hard-to-replace skills. You'll want to do this quietly and sparingly, of course, and always document the reasons for the exception.

Pass along profits

By boosting your profit, you can grant more raises to your best employees. There are several ways to get more money coming in the door. If it's been a while since you've raised prices, maybe it's time for another hike. Find new customers by implementing a referral program. And, of course, keep your current clientele happy and then up their contract value with upselling and cross selling.

Money alone doesn't make your employees loyal. It's important to make your team feel valued. Open communication, opportunities for advancement, and regular recognition are important aspects of building a solid team for your cleaning company.

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