 Hey, good afternoon everybody. Tom Stewart here. I'm Liz Trotter and our guest today is Matt Ricketts. And this is smart business folks Yeah, happy Cinco de Mayo Tacos for dinner You can get any all the crazies have been out since noon. They've already posted up I'm not a cook Tacos Yes, real tacos with real salsa. I used to live. I don't think you guys know this but I lived in Mexico for a very short time Puerto Vallarta. So I can make some pretty darn good Did I just say Puerto Vallarta? I'm totally lying. I lifted rincón de guayabitos Anyway, I mean that was like where the love boat docked, right? I did not I don't even know why I said that I Have visited there quite a few times and I really love Puerto Vallarta, but no, I did not live there I lived in Rincón de Guayabitos and I lived there a short time and I learned how to make some phenomenal salsa and also phenomenal tacos Yeah, I think I'm driving in Texas soon My last vacation right before COVID hit was I was in Oaxaca for my brother's His his son's baptism and so we were And eating all the good food and that's the last travel that I've had since this all started other than You know, I did take the RV out a little bit this summer. I guess I can't say it's the last place It's the last really interesting place that Yeah, that does sound cool. That's a very cool place for a baptism I've ever heard of anybody they don't live there do that His wife is his wife is from there and he went to medical school. He went to medical school in Mexico City, Guadalajara, so yeah, yeah, very cool. That's awesome to have relatives down there so you can Done. Hey y'all I'm not sure what's going on with Leslie today It's driving and texting but if you're driving texting and cooking all at the same time I think it's just um, I think that was a Like something she had saved and it just inserted itself. I wish I could say I didn't know what that was and I had never done it But yeah, then there Hey TJ, I missed our call today. Sorry. I hope it was a good one sure it was Hey Linda I'm here too. Hey Tina You know We have an office in Greenville and it's and it's in a kind of a strip mall type thing and there's a Mexican restaurant in that strip mall and They closed today because they didn't have enough kitchen help to actually handle the volume Oh, that's so awful Oh That's so sad though, this is such a big money making holiday for oh, I hate that There's a very long segment last night On the local news of a restaurant that's been around. It's called Malone's Irish But been around for a long time Owner got on there and he's like I'm down to like 16 members I can't run this place like this I kind of thought it was kind of a bit of a Little bit of a quick because he could have been like I could close on Sundays and Mondays or there was some solution But I mean he just can't hire can't staff and I mean the place is the place it's jam-packed night after night I mean, it's like a really popular place And I guess they're gonna I guess they're gonna auction it off and someone's gonna buy it So it's it's never gonna really miss a beat it might just be it might just be like a publicity stunt for the auction I mean they did a lot of coverage on it because it's a popular place and and they really beat on the fact that there's not a Lot of labor available right now. I thought that was an interesting. So it's not just us. It's not just our industry. It's There there are some restaurants here that are Only open certain days of the week because they can't staff enough to be open seven Yep Lot of restaurants here in St. Louis are closing on Sundays now You know, which is normally a fairly big night out But they're they just you know Sunday and Mondays they're they're closing if they if they can't staff it's it's interesting It's interesting. That's that's a that's a new dynamic That a lot shorter hours here to the restaurants have much shorter hours. Yeah Yeah, I've noticed I've noticed that as well though. I don't usually go out in the late-night places, but A bunch of friends visiting this week and they'll probably drag me out later than I want to be so My nine o'clock bedtimes will probably go a little bit later this week Yeah, nine o'clock. Wow, you're you're really up late there I pushed it to 10 30 last night. I was a little late since I started working with Tom on Made Central I'm up a little bit later like researching stuff like Not as not as normally on my like You know early to bed early to rise game late, but I'll get back Having fun we're voxing each other at 11 o'clock at night tonight building websites till one in the morning it's it's usually fun, but Neither of us probably have the best boundaries with work I found myself a more one-incasion like I'm kind of winding down. I'm kind of laying in bed the next thing I know I'm having to get up and get a computer and I'll It might be like one o'clock in the morning and I'm working on something. Yeah, we both have bad work work boundaries We both like working a lot. It's we're trying to like be like Talking to each other. Yeah, otherwise. We'll just work all weekend Good luck Tina I Agree that looks like he's having a whole heck of a lot more fun than Tom doesn't he? But you know Castlekeeper sponsors a charity fundraising event for for one of our clients and Every year it's like it's a golfing event and it was Monday. That's why I wasn't here was and You held out in the fort and had a lot of a lot of help doing it And I caught pieces of it looks like it you guys had a rocking time But I'll play golf maybe twice a year and it's like people tell me that I should probably do that more and I think about it And I honestly have more fun doing this and I do playing golf and I might not look like I'm having fun Tina, but you should see what I look like when I'm playing golf Yeah, that's because of the Botox before Botox he looked like he was having so much more fun You know if I'm not vain enough to dot my mustache, I'm certainly not gonna go that route, right? I'm guessing not Tom Yeah, Leslie we're having the same thing here Mostly we are getting from All of the places that used to do their own cleaning like We have like an Alzheimer's place We got a call from them. We have a retirement home that we got a call from them So we're getting a lot of calls from those types of places and that's from the apartment complexes though Which I thought we would get we're getting all kinds of that too, you know, and it's it's interesting Especially the hotels. It's like if you know because hotels are usually I haven't gotten any hotel calls How about you Tom? Are you guys getting hotel calls? Honestly, I don't know We haven't gotten a gym called to Leslie So awesome He does have really good genes he doesn't need Botox I'm gonna look a lot like a wrinkled-up person all the time. I spent in the sun and Yeah, Tom's got better Tom's got better aging genes than I do It's the Botox It's so funny poor Tom, you can't win with Tom, you know now to the slide show Tom's Humor I kind of roll with it. I'm I'm used to it But we're having a discussion earlier and I guess kind of the overarching premises under certain situations You just have to have a high level of self-esteem to make it work and I feel pretty good about myself So I can take all this that's good Tom now. You're just gonna have to practice taking it with a smile Or is the Botox affecting? Smiling come on Liz. How many times have we been like doing videos or photo shoots and crap like that and it's like Okay, take two to come on Tom's smile. It's like I'm smiling It's true. That is your smile. I'm in You show me how to smile and I can't do that. I'll hurt myself I don't have that many teeth Liz Yeah, all right. Well, I'm really liking your new a deck here you have Tom. This is nice looks good I was trying to be nice make up for the Botox Tom's deck I just ran it through some artificial intelligence. No, okay There's software you can use to clean up your backs to make them look to make them look kind of Make them look presentable Good job. Okay, we got a lot of work to do today today here. So let's let's get get with it we want to talk about converting performance pay and That's really kind of relevant to everything we're talking about here, right because we can't hire people So there's a lot of things that we need to do in order to fix that but pay is certainly a component of it, right? Absolutely huge piece So everybody give a thumbs up in the chat if you like You know think that your pay could use an overhaul because we're gonna cover some really cool You know like two or three different really interesting ways you can tell your people today So just give us a thumbs up in the chat with a little emoji or something if you if you can use an overhaul in this Because I got a lot of ideas and change mine Probably three years ago and it's really helped my business And I'm warning you guys get your emoji on there get your thumbs up because Matt's deleting people who don't Okay Kidding, okay, you don't have to respond Although dude when he makes changes this guy jumps on changes I am so impressed by TJ Just I just got a shout out there, you know Not everybody can implement on ideas and that's not not it's not a skill that a lot of people have but Thumbs up and shout out to TJ a Problem was pointed out. He noticed it and he was just like bam on it improving numbers Yeah, that's good Leslie if you're hooked on hourly, I think it's because it is easy So it may be that there's some opportunities here. So I think I'm gonna show a pretty cool deck Yeah, we're gonna jump into this but you know the the long and the short of it is We only have so many solid dollars to go around so we need to squeeze as much value out of it as we can and You know, we've talked about productivity and efficiency and scheduling and float around terms like maximizing the return on human capital but part of all with this is creating a paid plan that Incense your workforce creates in the sun of for your technicians to be as productive and efficient as possible needs to be economically rational to do that and There's ways to manage hourly pay but Am I getting an echo? I Can mute Tom if you are yeah Muted myself as if you try to try to solve it Okay, well test test. Oh, she muted and disappeared now. She's back. Wow like magic Real quick. There's a lot of different ways to pay But hourly is certainly an easy way to do it from an administrative standpoint The least amount of paperwork involved Sometimes you can do a split hourly and and and you know, that's a payroll function that we supported made central where You're paying a higher hourly rate when you're actually on a job cleaning and a lower hourly rate when you're between jobs Even if you're doing that manually, that's not terribly difficult to Minister but usually need spreadsheets and some way to do the math But the two that we're gonna be spending most of our time talking about today or commission pay and job ticket hour because those are the types of pay that you can if you're really good and If you're you're productive and you use your time wisely you can Make more money and a less amount of time as a cleaning professional And it really creates an incentive for people to use their time wisely and to perfect their trade where where they can be Productive and clean as fast as they can, you know still meeting the scope of work. Obviously Commission pay everybody I think knows what that is. It's a percentage of the revenue generated if you got a job for You know a hundred and fifty dollars and maybe you're paying You know forty percent Commission to the technician cleaning it would be forty percent of a hundred and fifty dollars Which would be what sixty dollars I guess is that right? No What's forty times forty possibly at sixty bucks? Job ticket hour is a variation of that that you do some calculations We're going to show you how to do the calculations to figure out what your commissions would need to be You're doing commission or if you're doing job ticket hour, you're paying an hourly pay or Just the time be allowed time For for cleaning a home. So you do a quote and you have a home that you figure out It's going to take three labor hours to do it then you have an hourly rate You pay to those three labor hours So technicians able to do it two and a half they still get paid for the three labor hours They take three and a half. They're still only getting paid for three So they have an incentive to to be fast and you have an incentive to bid properly and make sure your production rates are right as Well because you'll have happier employees if you do this It's it's definitely these types of pay are definitely two-sided You have to get it right on the sales side first though For this really to work and know your production rates and do a good job time the allowed hours that you have to Realistic time that your employees can can do this work. That's really important for this to work It it truly is If you're not very good at predicting how long it's going to take to clean a home then it's hard to do job ticket hour And if you don't get your your rates right on the commission You know, you're not going to make money as a company But your technicians aren't going to be making enough money either and they're going to let you know it and Which is kind of so it makes itself correcting in a way There's a lot of tools that you can to dial this in and fix it if you get it wrong We've talked about rate adjustments in the past, but The big point of it here is that instead of paid plans Give you the opportunity to Incent people to be as productive as as they can be and Maximize the amount of revenue that they're they're generating per labor hour Which we really have to do some math to Make some of these work because you really are figuring out Pay based on a job-by-job basis and whether you're doing commission or doing job ticket hour There's somebody's cleaning, you know two homes a day five days a week. That's like ten jobs You have to figure out individual pay for each one of those ten jobs And then add all that up over the course of the week and do that for every cleaning professional that's working for you If you're doing that by hand or even with spreadsheets That's all a ton more work than just saying well They were you know, 37 hours last week times $15 and that's their pay because that's what it would look like if you were doing hour lay Don't most software programs Manage handle all of these different types of pay though. I think that's common now. Yeah Does anybody on here not have their pay type supported by their Their scheduling software, I'm just curious Just curious My last software didn't support how we paid we had to run it all through spreadsheets It was would you have I had a software called Vanigo. It was not it was not Yeah, I've heard of Vanigo I haven't known anybody that used it I'm just wondering if some of the basic ones customer factors and made Sort of autopilot if anybody here has and I know some of these people on here do use these different styles That there's a lot of people out there who use say t-shirts for time tracking We always did so that kind of tells me that you're using if you do that time tracking this for payment purposes, right? Well, you can have hourly for that too, you know, if you're hourly t-shirts makes it so easy They just clock in clock out and bam your payrolls there right But if you're using t-shirts Calculation for you if you're doing one of these performance pay So so yeah, no, I was just wondering if they if all of the different software Companies track this. I know they don't have the same reporting capabilities and all that But I'm wondering if they all at least less they use the t-shirts probably hourly How about the cleaning guru haven't even heard of them. Do they support all the different pay? Specifically like commission pay or job ticket hour does it do the math for you or I Know some people wind up exporting something another and dumping it into a spreadsheet Yeah I'm just curious. All right One of the things that you need to do to start this whole process out is to figure out You know, what is it that you're trying to pay on an hourly basis regardless if you're doing commission or job ticket hour or split hourly or whatever At the end of the day You need to have some ideas to what you want that to translate into in terms of out of you know The normal work week, you know, what hourly rate do you want that to translate into? because you know Department of Labor regardless of what you're using is going to ask you to Prove that you're at least paying minimum wage And they're also going to check to see if there's any overtime And if it is you have to be able to Calculate an equivalent hourly rate for the first 40 hours worked and they pay time and a half for All of the hours over that so, you know, if you want to Pay commission and you're asking yourself what percentage do I need to be paying or if you're paying job ticket hour And you want to know what? Hourly rate per allowed hour. I want to be paying you start by asking yourself. Well, if somebody works an eight hour a day What is it that I want them to what's the equivalent pay per hour for that eight hour a day? Then you want to do market analysis to figure out what your competition is doing. I have a slide here with Department of Labor and I'll actually I can click on this I guess Looks like Linda pays percentage And so she's got commission and they do make sure that she pays the minimum, which is awesome I've had so many conversations over the past week people wanting to know If you have to pay people for drive time between jobs y'all. Yes. Yes, you do Do you have to pay them additional monies? No, but they have to be paid for all of the time that they're working for you from You know the start to the finish everything that's in between there Linda what what? Software company do you use? I'm glad that they they manage percent. I mean They manage the minimum wage and commission pay. That's awesome These cuties getting big though. Wow. Yeah Hey, easy Yeah, they do I bet they do yeah, because John has an awesome piece of software they They do awesome. Thanks. I don't know if they do Jack. Take it. I work. They might do that too. I don't know Point is Department of Labor has statistics on Prevailing wages for house cleaning in various parts of the country you can drill down to to like a City level Problem with it is its old data The most recent stuff that I was able to find was from in May and 2020 And we've been a lot of unprecedented events that have taken place since May of 2020. Yeah So for market research, I would advise Looking at indeed in places like that and seeing what your competition is is advertising for starting wages That's probably a better thing View are interviewing anybody that has is coming over from one of your competitors Certainly asked them, you know, what were you making at your other? You know place of work and any other Intel, you know, you can get from that Wages are going up. I think that's the same thing to say and I think that they're going to continue to go up I don't think you know, you're gonna see that going in the other direction for a while This ties into the restaurants and everybody else. It's fighting over the same pool of labor and For a lot of people it's not economically rational for them to Want to work right now because there's still a lot of money sloshing around out there and For reasons that I can't explain right now. My deck is frozen This doesn't this doesn't ever happen to me. Tom. Do you have two screens? I'm just totally giving you a hard time. I Did laugh the other day Tom, I was watching something you were on a It was a recording and you were having tech problems And I was like, wow, that is something that is never seen. I'm I'm I'm the one with the tech problems. Not you I Was having to do what? You're having Chuck tech problems. You're you have the wrong camera or something like that You probably were still in like a ring central meeting and so you couldn't access your camera and I've had that as the only reason I know why that would be a thing But I thought it was funny that you were dealing with it I don't ever think of you as having any kind of tech problems not even frozen decks I've been spread a little thin lately Is that oh, there we go You got something yeah, I got something I had to close it. I always think if you're having a problem It's really severe Something big is going on Okay, sorry about that If it happens again Matt, we'll switch over to you. Oh, this is a nice looking nice-looking duck Okay, let's talk about converting from a clock So this is a little more complicated than some of the other examples we've talked about because this is Assuming that we have a two-person team and let's suppose that that two-person team starts at eight o'clock and works to 12 and They take a lunch and then work another four hours at the At the end of the day, so they're actually on the clock for for eight hours This two-person team and let's suppose that they clean four homes in each one of those homes is like an hour and a half, okay? So they're on the clock for eight and they actually spent six of that time cleaning in two of those hours Not cleaning driving and meetings and stuff like that Wow Matt clean my deck up a little bit. So let me get a bearing straight here We've got some metrics that we're going to share with you average revenue per job hour You need these are the metrics that you need in order to figure out how you Take whatever your target hourly pay is and convert it into percentage for For commission You need your average revenue per job hour and that's just the revenue for a period of time divided by The number of actual hours that your technician spent cleaning homes. That's pretty straightforward Cut this term called efficiency factor and for you guys who've been on some of our KPI discussions in the past You understand what that is it's the time that your technicians spend in the home divided by the actual time that they're They're on the clock that they're Working so in the example that we saw they cleaned homes for six hours, but they were on the clock for eight So six divided by eight. That's 75 on the efficiency factor side third thing that we need to calculate is the average revenue per clock hour and that's just taking the average amount the amount of revenue that we have for a period of time and dividing by the clock hours that it took to to generate at and then we calculate the Commission percentage which is the target hourly rate divided by the average revenue per clock hour And this looks like a plate of spaghetti that was whoops I mean, we might have that slide out of place. I think we moved it later and maybe we didn't this isn't the saved one time Let's just 16 in this example for instance and The job hours come out to be 12 because we've got two people on it right two people working for eight hours two times 8 is 16 That works, right? They spent an hour and a half times four or six hours To cleaners so to cleaners Doing an hour and a half job as three hours per job times four jobs. That's 12 hours So this is where the efficiency factor comes into pay 12 job hours divided by 16 clock hours is 75 percent so they generated each job was a hundred and fifty dollars, so they did six hundred dollars for that day and The job hours was 12 so they got six hundred dollars divided by 12 job hours. That's 50 dot 50 dollars per job hour and You take that $50 per job hour and you divide it by your efficiency or you multiply it times your efficiency factor that gives you Excuse me thirty seven dollars and fifty cents per clock hour So if your target pay is fifteen dollars an hour You take your fifteen dollars an hour and you divide it by your thirty seven fifty Which is your your time per clock hour and that gives you forty percent So in this scenario if your average bill rate is fifty dollars an hour and your average efficiency factor is 75 percent And you're shooting for fifteen dollars an hour You would be paying forty percent Commission you would split that between those two people in that case and they could be making twenty percent a piece or Team lead could make twenty two and the the helper could be making 18 but together it should be forty percent Yeah If we want to go back to the other slide that's pulled from that's pulled from my software a couple weeks ago Maybe a little hard to read we can look in the software a little bit more, but you know, I want you to think about you know What you can accomplish here. So if you look at my payroll to revenue It's at thirty six percent now There's I think there's a flaw in this that it's counting tips in my total revenue And that's why my number is below thirty eight percent So if you back the tips out I keep my payroll to revenue right at thirty eight percent and I pay my people right around $20 an hour in 1955 an hour And and all those calculations Tom kind of kind of just went through is What's your one is what you're trying to get to is is you're trying to basically, you know, create a pay system that Allows you to a still manage all of your manage all of your profits, you know Manage to have some profits left over at the month while still paying people a competitive wage and You know, what do you guys think is a competitive wage at this point? Maybe type in the chat what you think it's gonna take To hire people at this point. I mean we all have a minimum number, but what do you think is competitive? What do you put it in there? I need the answer So, you know, let us let us kind of know but I'm finding, you know If my people can make around $18 an hour, they'll stick around I think it really depends on where you live, too so, you know Depends on what everybody else around you is paying and not not other cleaning companies not talking about cleaning companies a Year ago two years ago. We would have been talking about cleaning companies But now we really have to talk about the other jobs that your people could get which are a lot of them, right? That's why they're not coming down I've seen some people make some bold moves though and Rather than doing the market analysis and saying, okay Well, I think my competitors on the average are starting people out at, you know, 13 25 an hour or whatever They just basically took the jump and saying, okay Well, we're we're going all the way to 15 like as a minimum wage and they've been able to ramp their workforce up I mean it It's not about where it is it's about where it's going and My mind is that, you know, we're paying musical chairs and sooner or later the music gonna stop And we don't want to be the last company to figure out where the minimum wage is going Yeah, yeah, I can tell you castle keepers I mean we're here in the southeast and the wages here and the minimum wage in the markets that we're in is 725 an hour and It's been climbing our starting wage a year ago was a it's currently at 13 And we've made a decision today that we're gonna make an announcement on Monday that we're moving our starting wage to $15 an hour We're raising rates for doing all other things that we need to do a lot of these reports at Matt showing There's a lot of fancy math that goes into that because there's a lot of things that you need to adjust in order to make that happen but You know, I think three months from now You know, it's gonna be obvious that That's where we need to be or maybe we need to be further than that but you know, you don't want to be the the The lower end of the scale in terms of wages you want to you want to get in front of it at least at least that's my advice That's what I'm saying Same thing. That's why I'm talking about depends on where you are if you're where I am and you're trying to pay $15 an hour Y'all that's too late. Yeah So so we made our base About a month ago and since then we've netted five new employees. So I will say 15 per hour This is a great question. Go ahead and finish your thought Matt I'm gonna answer this because this is a awesome question. That's it I've noticed that just raising our floor to 15 and we can talk about But but the way that I pay is commission and if somebody falls below By below 15 in their commission rate, we we supplement their pay to make sure that they hit at least 15 So go ahead Tom. Yeah, there's I don't know if we've got reports in this deck to show it I guess we could log in who wanted to but the last slide is the whole the whole verification process We talked earlier about you have to be able to prove to a department of labor that you're at least paying minimum wage Well, you should be able to set your minimum wage to whatever you want it to be You know, the federal government might say at 725, but if you want to say your minimum wage is 15, then you can do that We give every employee a different minimum wage and we'll say as a company that the minimum wage is 15 But for somebody who's been here longer, we might say well, your minimum wage is $16 an hour and still put them on on commission or Fee split if you will, but if they do it over the course of the week if their wage doesn't You know, if the money they made off a fee split doesn't at least hit that minimum wage be at 15 16 17 Whatever we set it to be for that individual We would do the math and figure out well Based on the hours you would have made this amount of money So really what we're doing is saying we're guaranteeing you a minimum wage of act or More with your commission. So if your commission doesn't at least get that, you know It's whatever greater your the 16 bucks an hour 15 bucks an hour or your commission, whichever is greater is really how the Logic works. So Tom, you're going to have to explain about fee split because most people when they're talking about fee split The same thing you're talking about commission a percentage of revenue generated So when he says fee split you guys just don't think of don't think of split pay like you're thinking Robin of Love one one pay for drive time and one pay for when you're in the house People are thinking of when they talk about split But you can do that with split to if you're paying like 18 in the house and you know Ain't driving or whatever. Whatever you want to do there. You can still set a floor and say, you know I'm guaranteeing you at least $15 an hour. So if the math on that split came out to be 14, you know 50 an hour and they worked 40 hours that week Then they would get supplemental pay additional pay of an additional 20 bucks to bring them up to That guarantee a 15 an hour So this is on Monday for because it looks like most of you guys were here on Monday This is what we were calling Commission with base pay So just a base pay and Rosemary was talking about having a minimum same thing commission But with a base pay and a max pay He pays in between there You'll never get paid less but don't go too fast because you're never gonna get paid more either And I use different language and then commission it's not really truly commissioned in my mind I call it job share like it's their share of what's left over if they hit their targets So I just use a little bit different language. You can call it whatever you want Commission is really not truly what it is. So I think it creates some confusion but it was called that by Jeff Campbell in 1979 and we've all kind of adopted that right so You know, that's that that's kind of where that idea came from So if you haven't read his book, he kind of laid that out in 1979 when he wrote Speed cleaning we all kind of adopted that as like, oh, it's commission, but it's not truly 79 like you remember when that book came out, I mean I was born that year It was the first book I read It was a good year for me Job ticket hour is really easier to figure out what you need to be paying for for for the allowed hours if you're shooting for $15 an hour and Your efficiency factor is 75 percent You just take whatever your target pay is and divide it by your efficiency factor In this case 15 divided by point seven five gives you $20 an hour So you'd pay $20 an hour for the allowed hours on a job And that would on average equate to $15 for every clock hour And you can put a floor under that as well and say you're not going to guarantee you $15 an hour and Maybe your target paid is 16 bucks an hour and redo this math and take 16 and write it by point seven five But never let it drop below that 15 so if it comes out to be 1450 you do the math and figure out well how much money much extra pay to give them in order to to get it to the 15 And again, this is sounding really confusing For people if you're thinking you might your software doesn't do this then it it is doable But you remember you do have to do the math on it So don't just don't don't just wing it if you're if your Software doesn't doesn't do this job tickets not that hard though because you probably have a set number of hours available for each Pull that into a spreadsheet every week and multiply it out by job Liz if you do it for one second, I'm sorry it's Yeah, so if you if you multiply it out by the job ticket hour the Then then you can kind of get to a pay pretty pretty easily with job ticket hour it's that's again, that's another thing that I've tested before and I think it's You could you could run reports and most of your software and do this Obviously made central is gonna make this easier But a lot of your a lot of your house clean softwares might have this function and I would definitely look into job ticket hour as a pay I think it's one of my favorites as far I mean, I don't do this personally because again change is hard and I don't want to go through change We have something that's working. We're paying our people really well It's it's incentivizing what I want But job ticket hours my favorite because then they can brag about if your job ticket hours $25 an hour They're making $25 $25 an hour for every hour. They're cleaning. That's what they're gonna tell people they make and You know, especially if you're a solo you can get that efficiency factor up even higher Like if they start at their first house and end at their next house and they only have one little drive time in between This can make what they this can make what they look with look at what they make per hour Look really good and attractive for the job The other thing that's really Nice about job ticket hour, especially if you're coming like Leslie you're coming you're you're hourly You love it, but you want to have something that's maybe a little bit more incentivizing job ticket hour is awesome because you you Retain the ability to give raises out based on the performance additional performance metrics where Percentage you that that's not typically how it works with percentage. They get their raises and pay based on You raising rates to the clients So I think our is good because of that for a lot of people as well Well, a couple of my friends that are visiting this week are used job ticket hour And I really I really understand it well because they've described it all looks kind of crazy people But once you go this way, it's your life can be improved as far as like, you know Recruiting and retention when your employees can brag about making twenty five bucks an hour or whatever the number is That's a big deal, especially with solos. You can get your efficiency factor up really high To be able to pay them pretty well Yeah, because you're paying commission a lot of times that gets confusing It's hard to even explain because there is more math involved and Even the word commission has some negative connotations Sometimes people hear that and think it's some type of multi-level marketing thing and You know, there's a lot of confusion that goes along with that But if you can just say that, you know, we're paying 25 bucks an hour for time it should take to do a job then No, it's it's a lot easier and a lot of a lot of different ways. Yeah Do I think about about commission though? Excuse me Molly got a haircut today, so I haven't seen her but it sounds like it. She's home now Tom it doesn't sound like she's happy about her haircut. No, I'm not sure what we got there, but Commission your your your your cleaning professionals of the company are in alignment Making sure that the customers are paying what they're supposed to be paying if you have a job that's under bid You know, even if you're not tracking that closely As a business owner which you should you want to have tools in place to do that But if you aren't your technicians will help you out with that They'll let you know because they'll tell you that I'm not making enough money. Mrs. Jones's house. You need to charge her more Absolutely. Good point So average revenue per job hour We've kind of went through that The whole allowed hours Anything here Matt that that we haven't touched on already, you know I just think we just we hit it you just hit it on the head though Like whatever you do if you're gonna use these two programs to pay You need to have good tracking and good. I call I call this dispatch and and and you know Basically after the fact so like, you know scheduling and sales, you know You need to do a good job scheduling and making sure that the sales numbers align well But after the fact you need to be tracking You know day in and day out as you dispatch jobs to make sure that you're hitting your target hours And you need to be watching this and really asking questions if you're not hitting targets because this This will it won't cost you more money But it'll cost you employees if you're not hitting your time because they're not going to be happy with you if you're not Bid properly so they need to be they need to be able to hit that target or less You know or in less time for this really to work well Well, that is one benefit of having a base pay on your percentage as well You will notice it really quickly because if your people are making base pay that means you're losing money You're having to supplement their pay to get them up to base pay Recognize that and nobody's happy then Yeah, let's see Molly come here Yeah She's really unhappy about that here So this is a this is an example out of made central of a lot of things we're tracking I have the screen open if you want me to share just like in sure You know, this is from a demo account. That's you know, let's let's just Kind of look what we have here. So Let me zoom this out to the whole screen here All right. Do you guys see up? There we go. Let me Make the numbers bigger here. So this is from a demo account. We've got Alice cleaner Penelope cruising, you know, it's not real not real people But what I want to show you is is that you know, you can track all this In software a lot of your software does it, but you know It made central is like this is all really easy to do and I think this is one of the key reasons that my employee Turnover is incredibly low because we're paying close to $20 an hour pre-pandemic. We've always paid well And now I'm like I'm about to raise my price is another 5% which gives my employees another dollar an hour raise That are at our current, you know pricing We're we're hitting close to $70 an hour with our cleaning rates if you're not there yet I get it like, you know, I've got a little bit of advantage because I've always been a little bit higher priced But you know, we've talked about this before raise your prices because that can affect what you can pay your employees and so forth but so You know, you should be tracking the total job hours that your employees are working paid hours Right for if that's how you're paying right if you're paying, you know on the job cleaning A loud hours would be where you would be tracking this and Tom you're doing that You're doing this live show. Do you want to just you know talk through anything here? But if you're so if you were doing allowed hours, and that's how you would pay This would be what you would be tracking. So even if they were over on their job hours like they are here This would be the number that they would be paid Again, you still need to be tracking all of their of their drive and office hours You can't not track this because you need for compliance to be able to show their total clock hours and make sure that they made over minimum wage So, you know You know on their end you want to be able to show them That what they made how you know what they made per hour Supplies thing just for a second because we mentioned that and it's like what does that look like in the real world? well, you know, it's a department of labor thing and You know as a rule it's not an issue until it's an issue and typically it becomes an issue if you have an employee That makes a claim that they're not being paid fairly And if that's the case then the department of labor will do an investigation And they call it an investigation. They don't call it an audit. They call it an investigation because A claim was made that people weren't being paid fairly And that's where all of this information Is needed because that's what the you need to show to the department of labor to prove that you're paying people fairly Who's ever done one of these? I have not I know I know some some people that have What's that? I've been audited, but I haven't had to I haven't had an investigation done But I have been audited. Well, it's still pretty intense was that they were in your office for almost 30 hours that week, right? That nope, that was um, oh chef that you're thinking oh, oh, yeah A different animal completely Yeah, that was two weeks matt so I would have loved it if there was one way um, but yeah, I have been audited and Like for this is a really big deal So earlier you guys matt was talking he's he's mentioned twice now how he changes his language Or he knows of people that change their language so that the employee believes that they're getting paid Well, uh, he said that one example is his friends that pay Did you say they pay job ticket hour, right? They pay job ticket hour and they and they're their solos and their job ticket hours are in the range of 24 to 25 dollars an hour Tell their people that they pay 24 to 25 dollars an hour But i'm sure that they're also very careful to say you do get paid for drive time So one mistake that I hear people saying a lot is no, we don't pay for drive time instead you get paid for For your time in the house either your job ticket hour or your percentage. That's a mistake y'all Don't ever say that you don't pay for drive time I mean unless I guess unless you're not but Ideally that's a loss so if for some of these Instead of pay programs that we've talked about That's why it's important to Have these are your you know your your gross pay for this period of time week two weeks, whatever it is And these are the total clock hours you worked Which is including the drive time and everything else In doing the arithmetic where you take the pay and divide it by those total clock hours To show you were paid You know $15 an hour for every hour you were on the clock Including drive time meetings plus the time that you were cleaning Yeah, so the so so it's all tracked and you need to be you know be able to to identify some different things So so one thing we talked about is the supplemental pay This is zero in this example if we were looking at like a report from mine back on the slide We can go back back to that I had some employees that fell below supplemental pay And so they I wanted to maybe discuss that maybe we should show that slide because there was a couple things on there Where um, you can kind of see a real more real world example of how we pay versus You know versus this and a couple things on that slide may may not be clear because we don't go over there Go over it, but also within the software, you know, you're tracking overtime So gross wages before overtime the software also tracks sick time pay time, you know sick pto however, you want to pay people and And in the example here, you know, they average out to about 14 38 per hour and You know, however you want to pay That's probably not going to cut it anymore. This is just like a demo account we have And what I also really want to show is You want your employees to be able to to have access to this data so they can understand how they're paid So however you pay you need you need to basically make it really clear to them to avoid The frustrations and the pain of having to explain this every week So if you can display it in their pay and they can see it you won't have to sit down every week Like where they're feeling like they're they're getting, you know ripped off somehow by your company So they want to you want to be able to show it even day by day and job by job if possible And see what they made, you know in every single You know potential instance of how you of how you pay if you have a complicated pay system Where you have, you know pay for drive time that's different than pay for, you know other time Which is what is kind of in this example here where they're getting A lower hourly rate for their their time driving You want to make that clear to them and be able to to see what they made If they had any supplemental pay if they had any tips So this is again a demo account. So it looks like They had some 41 dollars and 66 cents in tips here So they want to see you can see that their job pay jumped up because they got some tips. So, you know It's a little disingenuous sometimes where I hear people at my app, you know And I use it to a little bit where I'm like my average employee makes 21 dollars an hour when I include the tips It's a nice number. Um But you know, if that is how you're going to pay and tips are important Then it's definitely really important that your your your employees can see all the tips they made who gave it to them And and so forth. So, you know The they're doing on a good point too, Matt Um, I just had a conversation with a business owner that got into this little bit of a sticky widget So if you are advertising you have an ad out that says that average pay is whatever 20 dollars an hour And then your employees all get together and they're all talking about their pay and they're making 16 17 18 There's going to be a revolt because you're lying In your ad that they thought they're going to make 20 bucks an hour. That's what you told them That's the average pay and nobody in this company makes 20 dollars an hour That's going to cost that you don't want to mess with people's tail That is one area that you don't want to mess around or another part of this A variation of that is As we're getting into this The situation where wages are going up and if you're raising your minimum wage, you need to be sensitive to All of the people that are currently working for you And you can't be hiring new people at 15 dollars an hour if you got people that are currently working for you for 13 That maybe maybe they will be making 20 dollars an hour and you forget to take care of the people that are currently making 18 and You know, you don't want to say well, you know, I'm paying them. I'm paying the new person more than I'm paying you That can happen too I'm gonna let it before we forget. I'm gonna put this in the chat for I'm doing a webinar next week Um a week from today I'm gonna put in the private chat. Can you grab this somebody and put it into the main chat? Can try Can try that looks good. That's a good-looking duck there, too. Matt does a good-looking duck Yeah, right a rising tide raises all boats So, uh, you know just to kind of end, um, this is going to be something that I'm going to cover in some in some Fashion on my next webinar. So I'm doing I'm doing it kind of based on Some principles that I learned from tom and lis and I'm calling it the foundations of cleaning business success I'm going to break down feet four key areas Of cleaning businesses and one of them is going to be is going to be this employee engagement I consider how you pay people a really big part of the engaging with your employees And then we're going to take one of these four segments do some super guys Into some additional webinar. So this foundation is a cleaning success is going to be next wednesday may 12 One p.m. Eastern tom. I got it right this time one p.m. Eastern. It's not going to overlap with Any other made central activities that we have going on? Yay 12 p.m. Central Uh and 10 10 pacific. So uh, you just go to this made central dot com forward slash learn dash the Dash foundation. So I might have I may have you should have just made even a a simpler url A lesson learned I will probably just shorten those in the future but uh, we put that in the we put that into the comments, I hope and uh, it's going to be a great series and I should go to foundations 11 I'm going to be there the last couple days because I need to announce That's another thing I need to announce is a conference for made central users. That's going to go live I can't put that out today, but I'm going to put it in the private made central group for any made central users that are on there There's a special bonus in the made central private group that I'm going to put out tonight or tomorrow morning I don't know if I have enough time left So to get that out there, but it's all tested and live and we're ready to to make that announcement as well But please come to this. I think there's going to be a lot of great learning opportunities It's going to overlap with a lot of great information that uh, tom and lis have taught me over the years So you will be doing a cameo at f 11 as well though. I'll drop in the last couple days. I'm going to be there I'm excited I'm going to bring a bike and ride my bike outside in beautiful, south carolina I know that's a couple of days is when we do marketing y'all so That's to be awesome Yeah And uh matt you're made central event That is after foundations That's going to be only for users though, right? It's not no No, we're we're we're gonna we're gonna see if we have enough room if we if we oversell we might get a bigger space We're planning on holding in tom's place initially But there's a lot of learning opportunities and overlap if you're not a made central user We're just gonna we're going to sell it to made central users first and And then there's just a lot of outside demand And you know we're adding we're adding a lot of users to the platform right now so There may be the case that we need to go with a little bit bigger space Than tom's office. So we'll figure we'll figure all that out in the next month But the initial plan is uh, we're gonna let people we're gonna get a couple recommended hotels We're gonna let people have their evenings to themselves and socialize and network after hours And have three days of just jam-packed learning at tom's office So we'll see if we can open it up to the general public. We're gonna we're gonna sell it to our main central users first All right So we are out of time tom. We are Until monday until monday whenever out of time. It's just for the moment for the moment What are we talking about monday left on monday? We are talking about reviews getting more reviews for your business We will have two guests on for those of you that know gosha From chicago and then also dan smith from Oklahoma. Oh, you guys are in for treat. Gosh, that's gonna be awesome gush and dan are both really smart business owners That's gonna be a great week. Good job guys Okay guys Take care. We'll see you monday five o'clock aster. Bye. Bye y'all