 Hey, good afternoon here. Tom Stewart. I'm with Liz Trotter. This is smart business moves. Hey y'all. Ah shoot, I just remembered that Somebody asked me For something and I forgot to get it to them. Well, darn me Was it something that was supposed to be done here as part of smart business moves? I'd be some kind of a surprise Really? Hmm I forgot to do my part Would have been a surprise for me, I guess Writing this down you get all the surprises. I'm you already got all the hats. Oh, I know All right, I got it Okay So what are we talking about today? You know what we're talking about. We're talking about KPIs today Well, I just really wanted to ask you because right before We're talking about anything happening in the COVID world or PPP or Employee retention tax credit any any late breaking development stuff going on there Kind of think if I have heard anything I haven't heard anything That is oh, I did actually hear one thing I was advised to go in and Anybody that's had COVID to go in and get a blood test and something else. Let me see what it was Doesn't the you know the blood clots that are popping up We're gonna go in and get your lungs checked Have an X having a lungs x-ray and get bloodwork done Okay, okay. Well, that's are you making so that's what they're advising people who've had COVID. Yeah, exactly I guess it's good. Good advice. You know, there's all kinds of Unintended consequences after getting through the initial bout that can pop up Strokes and things like that just weird stuff and definitely lingering there are lingering Am I trying to say Things wrong they're lingering things happening, right that that hurt and I caused trouble afterwards So that are my nearing comparison, but Symptoms There you go Sometimes it seems like English is not my first language, but it actually is as good as it gets isn't it You know a little bit of Korean though, I know a little Korean I know a little French and a little German I know a Modicum of Spanish So I actually think that might mess me up all these like disparate languages out there English is such a struggle because you got Like what is that word no, that's not the English word for it. I'm gonna go with that town That's what I'm going when Debbie's asking a question here that we might be able to hope it was she wants to know When can you ask for your PPP loan to be forgiven? I Assume that you're talking about your first PPP loan because It'd be too early for your second if you you know, you've gotten the monies you wouldn't have an opportunity to have Spent them all on the things that it's intended to be spend it for On in order to be forgiven. So for your first one You have up to ten months as I understand it after you received the loan to ask for forgiveness. So I Don't know say you got the loan May 1st of 2020 I think that you've got up to the beginning of March or the end of February the end of this month I guess would be 10 months, wouldn't it? well, if they got it and No, if they got it in May Yeah, so that's the fifth month, right? So yeah, yeah, yeah because so then be the end of March Yeah, so not this month next month in the March They've still had well now because they get to the end of April. That's 12. So it would be the you know May at March would be month 10 in April be month 11 So right now it'd be 13. You're right. So what's 12 would be? You're the math guy I love testing you. I want to make sure you're you're paying attention I love this list past So, you know now's a good time, you know, if you've gone ahead and you have Met, you know the requirements and I guess you would have because the money's would have had to have been spent by the end of 2020 right for the first round in order to get into the forgiveness window You certainly want to make sure you get it done before you've used up your 10 months from when you receive the funds Because at that point I think it's too late You know that there are going to be some people that are going to mess up and there's going to be a whole big thing But you just don't want to be part of that group to be Just just do it within the 10 months and and save yourself a bunch of grief and hassle They were recommending, you know as as soon as maybe a month ago to wait just a little bit longer until the new president was put in place and End of the year came see what else was coming along But the information that we're hearing now is yeah, it's okay. We're there aren't going to be a whole lot more Benefits coming down the pipe here. They got that nice short form. So yeah If you received less than 150,000 I understand it's really a breeze to fill out Yeah, this is awesome. Yay Right this now. I'm writing myself all these notes today I've been using my journal so trying to trying to Handle it correctly like a big girl. Yay Liz It's so much to keep up with isn't it? Oh my gosh, right? Somebody was recommending to me because I like to read a lot and sometimes I struggle finding different things that I want. They said yeah, you should get into podcasts and Start start listening to podcasts and I Just started to look at like yeah, that's a good idea I'm an hour of my day was gone was like What happened right there? I just lost an hour and I hadn't listened to any podcast. I had just looked at Who makes them and how you do it and all that good stuff? So Yeah You want to get to work? I do Okay, let's do that ask today. Look at we're getting to work at 208 common or 508 in your world I'm proud of us We got a lot of work to do We're talking about improving productivity and the productivity again being Defined as a loud time divided by actual time And we want to improve productivity because of the improved productivity that is going to help us lower our Loaded direct payroll to revenue And we want to worry about Robin's sucking up over here Tom KPIs are fine He's kissing up. Good job, Robin I Yesterday Robin, but Tom did show that he posted the Timelines for attention. We posted it specifically for you. We just forgot he forgot to tell anybody For a week and I forgot about it But if you go to smart business, I mean cleaning business today forward slash smart SMB resources here I'll drop the link in chat You go to that link this First one here, you can click on it. You'll download that Document that Liz had with the reasons that people leave Oh didn't eat slipped right in there between your little links there. Hey, didn't eat Okay so at this point we all appreciate why we want to Lower a loaded direct payroll to revenue because that gets our cost a good sold down which gives us more money to play with After we pay our cleaning technicians and we want to do that by not necessarily paying them less but helping them to Produce more to be more effective to be more productive Hence productivity so we can pay, you know a great wage We still have a small cost a good sold and a cornerstone of that is going to be training We talked about training in terms of you know You got to look at somebody's talent level as well as their skill level and talent is Kind of the God-given, you know attributes that that they came to the job with you know, how fast they are how strong they are Things that arguably you really don't have a you know, I guess you can even improve talent But it I mean that's a that's a heavier lifted as an employer. That's usually outside of our realm of Jurisdiction but the skill part in terms of being able to use the talent you have in a way to get the most out of it Well as you had an example of that yesterday with a technician who was relatively slow But what was it what was how did how did she learn to? you know Clean at a reasonable rate where her productivity was was you know, at least acceptable Yeah, her productivity ended up being over a hundred percent and she use So just some basic systems. She learned how to do thing. Well methods is actually what you have on here Tom She learned methods for increasing her speed while still moving her body very slowly So she never did really speed up her body Intentionally she never felt like she was going faster speeding up But just the repetition of doing these new These new processes and cleaning in these different ways Doing them repetitively she she automatically got faster, but she's still always maintained very very steady when she cleaned and She appeared to be cleaning very very slowly. She wasn't but she appeared to be cleaning very slowly She was just exceptional at doing things like When you would wipe something in a hand with and Your next one a lot of times people just keep going over things, you know and wiping might be wiping wiping wiping She was just exceptional at one hand with and then over up an entire hand with over Down an entire hand with she was just and she knew how to she used her hand exactly right to capture spin capture spin capture so she really just She perfected Cleaning cleaning technique the hand movements and also the foot movements She focused a lot on not moving her feet again. She didn't want to move a lot. And so she didn't she She's the one that really helped us to And slices a term that we got from Joanna Douglas I'm just cleaning in the slice you stand in one area and you clean this area and then you move to the next slice and She was ridiculous Ridiculously, but boy if we saw her you'd be thinking she was slow So in this whole area of methods, there's this general concept of economy of motion where You know, there's a difference between motion and movement You know, it's not like, you know, there's sayings things like, you know, the shortest, you know Distance between point two points is a straight line that you want to be teaching techniques that allow your cleaning professionals to Get as much movement with as less motion as possible And there's I guess explain that Tom. What do you mean by that? How do you get the most movement with as little motion as possible because I think a lot of people confuse those two words, right? You very much somebody clean that isn't very effective and they might Be on one corner of the room doing something for a little bit and they run all the way over the corner of the room they do something and they go somewhere else and do something and There isn't a system in place Whereas if somebody has a system in place and you know, there's a lot of different ways for the system to gather but they're all should be designed in a way to minimize the Movement or excuse me the motion involved to actually get the work done that that you want to dirt get done For instance Top-to-bottom left-to-right is something that that often times is said where you might start at the Doorway of a room and start at the top and work your way around the room from left to right top-to-bottom Back to front. Yeah. Yeah And the thinking between top-to-bottom is you got this thing called gravity that if you start at the bottom And work your way to the top then if you're knocking dirt down Then the stuff at the bottom that you already clean might get dirty again. I Don't know Liz. Do you do you buy that? I? do especially with Maybe areas that have not been cleaned as Often as as like Recurring cleaning, you know as often as we might be cleaning in our our businesses so I think a lot of people have seen that with first time in cleanings or With homes that I've just really got like single cleanings where there's a lot of buildup Even when you are really working hard to capture all of the dirt and dust a lot of it still does go into the air and then settles and Then as it settles you you begin to see I'm sure most of you have been in a situation where you have seen that thing cleaned you or you've cleaned it yourself You know what was done the customer calls and says it's journey doesn't even look like it's been dusted You look at it yourself, and you're like what the heck it is dusting. I'm the one that cleaned it so that that absolutely can happen the Dust etc. I can get into the air and it does settle so the smarter move for me is Started the top work your way down. What's this third blink? You ever heard of the word? No, is this what it is? Come on, you have to I swear not in any language Tom Okay, I Swear that this Not me. This isn't the first time that that we've talked about maybe on smart business moves But over the well, I don't know we don't really do this in foundations. Do we so I'm okay You ever see the movie cheaper by the dozen Frank and Lily and Gilbreath. Yes, okay, and they're kind of like efficiency Freaks trying to have all those kids. Yeah, that's a that's a I mean I don't know the movies based on on real people there really is a Frank and Lily was a Frank and Lily and Gilbreath okay, and one of the things that they came up with is stair blagues and There's basically there. They're they're the basic motion elements and any work that's done is Done with a combination of these motions or these activities search find select grasp hold Transport loaded transport empty Kind of kind of get the point now any work activity can be defined by putting these together in various combinations of what's being done and I'll drop this link Anybody wants to know more about fairer blagues I'm totally wanting to look at this and and check it out a little bit more and Out of those stair blagues they define some of them as effective that actually are You know necessary in order to do work And work in our case is playing something and they've identified some of them that are Ineffective and it doesn't necessarily mean that you don't have them at all that you you know that that they're gonna be completely eliminated these are The basic motion elements that you really want to focus on and figure out how many of them can you eliminate and how many of them can you reduce because They really aren't getting you The outcome that you're looking for there. They represent potential wasted time Okay, this makes sense to me. I like it. So like one of them here is search If you're doing something you have to search for something, you know, where's my you know, whatever Anything you're wasting time absolutely whereas Use is use. I mean if it was a way that you can use it more quickly That's great, too But you're actually cleaning something if you're using it, but if you're looking for that brush if you're searching for that brush or plan as another one where You're in a house and you're having to figure out well, what am I going to do? What product do I use? What tool do I use? Where do I start? Who's cleaning what? Yeah It doesn't mean that you're gonna make 100% of the planning go away but a lot of times with good methods you can Reduce the amount of time and there's less trying to figure stuff out and searching and Certainly any type of delay is avoidable or are you know unavoidable? You wouldn't want to get rid of Yep, that makes sense. I like all these rest hole position That is I'm trying to figure out how it would work and clean I don't know if it works in cleaning But like if I am in a manufacturing process, you say I'm an assembly line and I've got a part I want to be able to take that part and just put it right where it belongs Rather than having to fiddle with it to get the threads lined up So everything is in the right position. I think that this could could make sense, too For example your if you have squirt bottles or spray bottles in a caddy that you would definitely want the handles all Pointing in and when you go to grab them, they're ready to go and they don't leak onto anything So I think position could although this says it's ineffective. So maybe I've got that wrong Well, no, you don't want to you want to reduce the amount of time that you're having to do that So Yeah, so if you could come up with with with methods to reduce the amount of time that you have to fiddle around with that Yeah, absolutely. Oh that okay. I can actually think of a couple of examples for a position then Having designated spot where everything goes back in that exact same place Yeah, using color-coded spray tops and labels and various things so at a glance you aren't searching for the Window cleaner because you know exactly where it is in the caddy and you know what color it is Maybe better yet you're wearing an apron and the apron has the ability to carry a couple of models on you So where you are having to? Walk and you know, you can you can you can say arguably that search Walking is a form of of searching walking is a Really big waste of time That's one of the things that you want to reduce Between select and search walking. I forget what it is. It's been a while since I've done this professionally But walking falls under this ineffective side So the fewer steps you can take to clean a room or a house The more productive you're going today Yeah, absolutely anybody that's ever timed to this tested this knows that this is true Though the amount of steps that you're taking really really impacts productivity. It's interesting that they have Inspect on here. I understand why it's on there But it's interesting because I think that a lot of people would not think of it as being ineffective Right, they might be thinking of it in a different way Well if You're having the less time you have to spend Inspecting the more productive you're going to be yeah, do it right the first time so that no one is needed Yeah, it doesn't mean that it has to go that it should go away completely But if you've got a really bad process where you're having to Inspect and again if you go back to like a manufacturing process where there's multiple steps on a Assembly line if you're having to do like heavy inspections on on every point You've got some pretty some pretty serious quality issues if that's necessary And I would say that that's true in our business as well if you find inspections a necessary part of Of The process to be able to maintain the quality levels that you need But there's probably some other stuff that you can do instead. That's not ineffective or less less ineffective more effective what More do we want to say about? Training I mean the whole thing is cool in the methods, but there's so many I mean there's so much more there than Just the the methods part of the training well so I Guess part of the training and increasing productivity Should be talking a little bit about on repetition maybe And just the the practice that people get so that they have more time to do the stuff that needs to be done Because repetition does does Me know speed things up We got going on there Tom Yeah, I'm trying to get my desktop organized So you say repetition just the general practice. It's like practicing any activity you can Yeah, or to build your speed up. Yeah, the more you do it the faster you get It's why they don't recommend that you God Brain is struggling language skills are lacking today Why you don't jump from thing to thing to thing and instead do one activity because the more you do it in In a row without a break Then the faster you will get at it. So they they really recommend that you not You know a lot of people think that they're really good at jumping from task to task to task and back again And being able to do that. There are a lot of studies that show That's nowhere near as productive It takes time for your brain to shift. It takes time for your body to shift takes time for everything to shift So that the repetition I think is really really important and Something that goes along with the training I mean the technician is part of the whole productivity answer if you will but The tools you provide your technician and the cleaning products the cleaning agents you use All of those are part of the equation as well absolutely, I Can be a really excellent cleaning technician, but if I've got really crappy tools and Really lousy cleaning agents. I'm not going to be nearly as productive, right? absolutely, yep and that's why Your cleaning professionals get so or my cleaning professionals get frustrated irritated upset if they don't have the correct tools if For whatever reason they didn't get and you know enough plots for the day and now they're they're having to know manage their the amount of towels that they have so Tools are a really big deal Well all of it and the supplies the equipment For productivity absolutely, I'm thinking of so many things like I'd like my brain's like so fast that I talking like long cords on your vacuum cleaner and Spray bottles that actually spray or sport bottles that are even faster than spray bottles or So many different things Yeah aprons long cords I can tell you I mean there's a lot of material out here on this and the whole idea of Like speed cleaning Jeff Campbell wrote the book on it Debbie partnered with him a number years ago And Debbie's carrying it on and she still promotes speed cleaning speed cleanings got a lot of the principles We're talking about here In terms of reducing steps and you know wearing aprons and using long cords And I guess we learned the other day that Jeff Campbell was an industrial engineer I guess I knew that but you know, I think that's That certainly makes sense and that's awesome Sharon ten bird is another person that really does a good job with training Technicians how to be productive very good. She puts a ton of focus and On that whole idea and just Stays at it and that's really why she's such a large component of Aprons not because she thinks people look good in aprons not because she wants it done her way But because it is so much more productive There's bottles versus spray bottles, that's a huge one too. That's also great for to reduce repetitive injury The actual Wipers or towels you use And I'm not gonna say rags because we don't clean with rags Thank you, Tom People vacuum cleaner you use can make a difference How does how does that? Matter Tom aren't all vacuum cleaners don't they all pretty much do the same kind of job? We've actually Done some studies and actually there's some videos on the maid. Excuse me on the modern cleaning website that back CC help us with that where We basically put a clock on cleaning rooms using various types of vacuum cleaners like backpacks versus Uprights versus canisters and there's pros and cons to all of that But the larger space you're doing the more productive you can be with the same backpack vacuum Starts getting into all kinds of nuances in terms of how big the powerhead is for instance, you know Is it a 12 inch versus a 14 inch? Here's a resource That if anybody really wants to get nerdy on this might find Useful this is from ISSA. It's 612 cleaning times and these are like synthetic standards where If you want to know How long does it take to clean to vacuum a thousand square feet of carpet? There's a lot of caveats to that, you know, it is it is it is it Yeah, type of carpet and how Densely furnished is that space? There's a lot of stuff that you're needing to move around or is it open space? And they also get into The type of equipment you're using Are you using an upright or a backpack or a canister and you have a powerhead or do you have a nozzle? And is it 10 inches 12 inches 14 inches and all of that affects how long it takes to clean? that's awesome and Yeah, it It's a fun read if you're into stuff like that. It does sound fun to me gosh look at this Robin more fun right here And you know what I haven't looked at this in a while You know, I've got this and it's it's a I guess they still do it on it. Is it a download or is it a DB I have it on a desk on a DVD. Oh This is it's an open order your copy of the Times yeah And you see where it says it used to be 540 times, but now it's 612 Nice there. I have this 400 and some so they keep So now you have your nighttime reading there Tom, yeah, I've got a upgrade Yeah, you know a couple hundred times to check out Ah Robin was saying that he does use a speed cleaning method as well. I Really think that Using the speed cleaning method Even if you don't use all of it, you need to use some of the basic tenants from the speed cleaning method Yeah, because it is just so Common-sensical and So helpful for making people for helping people to be more productive Yeah, and actually I guess that that's a piece of it as well When you want people to be more productive, you can't make them more productive You can help them to be more productive by providing the correct training tools equipment and the correct mindset If but if they don't want to be productive There isn't a lot that you can do except provide the great stuff and give them the right mindset and then there you go want to talk about the towels and the wipers just for for a minute though because It makes a difference. We've done a lot of studies with this too and Not all microfibers the same and a lot of times we look at all of these tools from a commodity perspective and That you know, if I can get vacuum a or vacuum b or vacuum c or towel a bc, whatever You know, how much does it cost? What is my upfront cost in terms of what am I going to have to reach in my pocket and pay for it? And for just about every tool that's up here That's not the real cost you need to be worried about the real cost is How long is it going to take my cleaning professionals to get the job done using this tool? because Some towels clean better than others Certainly some cleaning ages chemicals clean better more more quickly than others and if you can get the right combinations of wipers and chemicals and Your whole tool suite together engineered with productivity in mind the first question you need to ask is How much time can this tool save us or this product is cleaning agent? Whatever and once you figure that out then ask well, what do I have to pay for it? But we are living in a world now where minimum wage is quickly becoming a 15 hour a dollar a dollar per hour thing and we're gonna have to be paying more than that as as You know cleaning companies. There's going to be easy to work out there for $15 an hour and You know, what's you know fully loaded you're probably going to be pushing, you know 20 bucks You know an hour or so at that point every three minutes is costing you a buck, right? so What is it? What does that mean? You know if I can save myself? You know five minutes over the course of a week by using tau a versus tau b that it really doesn't really matter how much tau a cost it's Cheaper from an overall cost standpoint than the more, you know Value-brand, you know price. Yep that less expensive one Using the clients back as we use a shark and they bagless upright life or clean professional use and effective a lot of people love the Different shark models. They're very very popular so and I Somebody drove me down a rabbit hole today, and we wound up looking at those. There's a busy and shark vacuums out there, aren't there? Yes, there are so many different models There but there are probably five or six really popular ones for our industry though That I've heard over and over again Color coding towel system. Yep. That's that's good too color coding towel system absolutely can improve productivity Yep There are just so many things that that you can do in in training especially to and in Just in your systems to improve productivity Microfiber is kind of the norm now, you know Liz, you know, I don't know if you can remember back that far when Microfiber wasn't even a thing everybody clean with something Cotton absolutely and there, you know a lot of people well a lot will still to this day Don't like microfiber because once it starts stops working real well It you know, it feels like it pushes the dirt around it and it does unless it's wet, right? And so it's you've got to have high quality microfiber And so if you're buying low quality microfiber, you're finding that it's not working For really really quickly. It seems like this stuff just doesn't work and so there are quite a few companies still that are cleaning with hot towels or Did I hear the other day? I heard another something Maybe it was cheese cloth But but cotton because they don't they don't feel that microfiber works and The problem with microfiber is again got to have high quality microfiber or it does break down too quickly And then it doesn't it doesn't do its job Good sources for microfibers Good sources for microfibers Tom Ah Microfiber wholesale and there's a couple of advertisers that are in cleaning business today Microfiber wholesale is one of them and there's another one as well microfiber drag, maybe Kick around cleaning business today. You can see some links there There's another company out of Chicago called perfect clean that they make a Really quality product as well Again, I would would encourage us for this equipment not to be thinking this is commodity purchase Oftentimes we do it's like, you know when I'm buying gasoline I'll go across the street to get you know gas, you know two cents You know a gallon cheaper because that is a commodity my car doesn't know the difference But don't be buying these tools based on price buy them based on performance Won't you figure out what performs the best then I ask how much does it cost? Thank you. Yeah, direct mob sales. That's another one Robin. They have good microfiber Yeah, I think you can find them on cleaning business. Yeah, you can you can Let's try to let's try to move on a little bit. Is there anything we want to say about Equipment I guess the only other thing that I have to say is any piece of Equipment any tool that you have any supplies that you have all Should be looked at under this This microscope of productivity So can I be more productive with this thing than another thing? so Because if you can you're going to it's going to cost you less in the long run You can be more productive you will be saving money in the long run. Let's talk about Performance pay and there's two primary ways. I guess there's there's there's three I'll just go ahead and list them. We all know about commission or Sometimes that's called fee split Or what's the other one job ticket hour? Yeah, job ticket hour is a second one Which is basically being paid based on We'll go back and explain what all these are a lot of times and Got a third called split hourly Then you are gonna have to add bonus bonus You did that that would get that we count. Yep That would definitely count if you guys know of another method of Performance pay another type of performance pay drop it in comments for me. These are these are the four that immediately pop up for me All right, so Let's let's kind of do these out of order Yes split hourly is a type of pay where when you're cleaning technicians are punched into a job or On a job actually clean at home they're being paid a Hourly rate that's higher than the hourly rate they would get when they are between jobs like driving between jobs so Example this might be you might pay your technicians $12 an hour when they're actually clocked into a job cleaning it and Eight dollars an hour when they're driving from job to job that would be an example of that and Go ahead. No, I was agreeing. Yeah, okay That it's a performance pay it has more that particular type of pay has more effect on Efficiency than it does productivity. We haven't gotten to efficiency yet So we'll we'll cover that tomorrow, but just just just so you know, that's that's part of the consideration Talk about bonus for a minute, how are bonuses used with to encourage people to be more productive so a lot of times people will our companies will give bonuses for people who meet time goals or Meet meets whatever time frames. They're supposed to be cleaning in so they'll get additional pay per hour Or they'll get a bonus at the end of the month or at the end of the week or whatever No, they'll get paid more when they when they are more productive So they'll just get paid more money. So sort of the idea of like that you shared yesterday, Tom If you have a more productive employee, you can afford to pay them more And so that's how this bonus system will work with people I've seen I've seen people do that with like One, you know, I'll mention Kathy gauge I don't know if any of you guys know Kathy, but she came up with a lot of innovative things in the area of Residential cleaning in terms of how to manage that the financial side and manage productivity She invented the master schedule if if you guys are familiar with with with with with that concept of Way to put together a calendar to do your your easily scheduled like weekly and every other week at every four week jobs But she had a pay system and I'm doing this from memory and Liz I'm getting this wrong straighten me out that her own cleaning technicians were responsible for calculating their Revenue per labor hour and they had a goal that they were able to hit that goal then they would get a bonus Yeah, that's exactly what she did But when they hit that goal then basically their new goal became So it was constantly driving them to generate more revenue per labor hour, which really is You have to be more productive to do that Yeah, and she did she didn't change the payroll percent to revenue number often she just Kept it out there all the time, you know We need to be hitting this number and I don't remember what she was hitting in those days, but it was Every week every week every house actually every day Well, and and I think what she was actually having them measure was their revenue per job hour Which is a little bit different if they you know Clean a hundred and fifty dollar home and it took them three labor hours to do it that would be fifty dollars per labor hour per per per job hour Is that ring a bell? No, what rings the bell for me is the payroll percent to revenue For claiming technician to figure out because I don't even know what their pay Was Very easy Know what their pay was they all knew what they were getting paid. They would do it at the end of the day Right, and they knew how many hours they worked So what I remember is they knew what they got paid They knew how many hours that they worked so they have their total pay and then that that's what they used it for There's a direct correlation between Revenue per job hour and your loaded direct payroll to revenue Yesterday a hire your revenue per job hour is the lower your lower Loaded direct payroll to revenue as so you could do it either way. I guess it's just a function of you know who would what day do you have available at the end of the day and who can you know What your employees find more easy to calculate but They come in every day with it with a calculator and kind of crunch numbers, right? Yeah at the end of every single day Yeah, that's what they did From her there's a couple of the things that we haven't gotten here yet in terms of expectations and accountability So that kind of fits that model, right? Absolutely. Absolutely Let's talk about commission paying job ticket hours. Let's talk about job ticket hour That's when you pay even a higher hourly rate per The amount of labor hours that you estimate it's you think it's going to take to clean the house How you calculate that I guess I don't do we do we do we Do we care how you would go about figuring out what you would want to how you'd want to pay The question is well, how much do you pay per hour if you're doing job ticket hour Do do we do we care at this point or do we just want to leave it to say that? It's a higher hourly, right? You might I'm thinking everybody down here always wants to know what are the benchmarks? What are the standards? What are the averages? So if you have something I think that's gonna be great. Well, I was Kind of pulled into this discussion today too Yeah, if you're doing job ticket hour, don't worry about any of this mess over here. We don't need that Think But say you want to pay $95 an hour Yeah, excuse me $15 an hour if your target that's your target, right? Yeah, you got an efficiency and we haven't gotten to this yet So this might make more sense tomorrow an efficiency if you remember is being defined as The Yeah, the time that we're actually on a job clocked into a job divided by our total clock time Which includes is job time plus driving and meeting time or whatever So when you plug in your efficiency You're basically taking into account the non productive time So if 15 is your target then the formula is pretty simple You take what your target is divided by your your your company efficiency and it gives you the hourly pay that you should do while somebody is You know Based on the allowed time of the job Yes In this case if you want to do job ticket hour and you want people to somebody make $15 an hour and on the average Efficiency is 80% then you pay them 1875 while they are You know not even while they're on the job that would be applied to the allowed hours for the job so how that usually works is so if you had 1875 was The The job ticket hour usually what they do is they apply an amount to the house So they will say I'm gonna use $20 because easier for me. So three hour house. We pay $20 an hour So we're gonna pay $60 job ticket hour So we're gonna pay $60 for you to clean this house. So if you get it done in two hours, great You just now made 30 bucks an hour So that's sort of the incentive for a job ticket hour is And it's a lot of people think it's easy on the company as well because they just say how much they're paying for house So mrs. Johnson's house pays you such and such amount of money And mrs. Smith's house pays you a different amount of money the other performance pay that we're gonna talk about is Commission, which is just a percentage of the revenue that's generated and a lot of people want to know a g how do I figure out what percentage just to pay my people and That's kind of straightforward to figure out as well. If you have a couple of basic KPIs You got to figure out what your target hourly pay is You need to know what your efficiency is just the way that you did over on the job ticket hour But you also need to know what your average revenue per job is So in this example, we want to pay $15 an hour for clock time If you have an average revenue per per labor hour or job hour same thing of $50 and an efficiency of 75% Then if it's a one-person team, then you'd pay 40% per per person And basically if you got two people on the average you pay 20% or three or four It would be per rated that way the formula is Let me see if I can actually show this in a way that would be This link somewhere or this is just on your desktop. It looks like maybe an Excel or something Yeah, it is and this is out there for downloads somewhere But I don't know where it is it would it be helpful if I put this in cleaning business today Yep, people will love that I promise you but aren't a bunch of these calculators are I think on YouTube Yeah, I don't know if there's a I did this for a more for Main service success on that. This is this is part of that. So this is it. I don't have a KPI video on this. I've got like a 40 minute video on this that I gave to a more that's out there that Have a link to I could could share as well if somebody wants 40 minutes of what to do with this spreadsheet But Basically what we're doing is we're taking the $15 an hour and we're dividing it by this $50 times point seven five that point seven five basically is Taking the $50 an hour you making while somebody's clocked into a job. He multiplied times point seven five That's the average revenue that somebody is generating while they're on the clock So over an eight-hour day that they work an average of eight hours 50 times point seven five whatever that is would be the average revenue per clock hours opposed to job hour Does that make sense does that make sense everybody I Talk with people a lot about this a lot. So I Get it fairly easily, but I know that it's a new concept for a lot of people So I'm curious the people that are on today. I can't remember who else on I know didn't eat son Robbins on Debbie's on Sam's on okay Sam makes sense you okay. Awesome. Thank you so if I'm making an average of $50 generating $50 per hour for the time that somebody's actually clocked into a job and if the average company efficiency is 75 percent then $50 times 75 percent comes up to be 3750. This is the average Revenue that's generated per clock hour. So that's including drive time and everything So does this make sense to you Linda? I see Linda's on here, too. Um, I Do have a question Tom. So how do people are we going to be talking about how they figure out their average efficiency factor or? Yeah, efficiency is coming tomorrow Okay So tomorrow y'all don't know what this number is. Tomorrow is the big efficiency day The difference is a wonderful number. You can do a lot of cool things with it productivity is an important number, too but in the few minutes we have left this is just talk about how these performance pay systems can increase productivity basically all of them are giving people incentive Well, I'm gonna take that back Arguably the split hourly is is more of an efficiency thing than it is a productivity thing So I am gonna draw a line through that I would argue that Split hourly doesn't really motivate somebody to clean a house faster because they're making more money while they're cleaning a home What it does motivate them to do is not to goof off between jobs Unless Tom the only time I can think that it might work is I know that some people pay more money They have split hourly for deep clean versus recurring clean or initial cleans so that people will speed up during those cleanings More than less. I'm sorry. They pay less So that people will speed up during those cleanings Because they can tend to take a long time Okay So it's the only time God I've been doing this for a while. I've never heard of that No, because it's a harder work. It's a lot harder work than maintenance cleaning So, I don't know. I've never cleaned the home, but that's what I've been told My gosh. Yeah, so that that's not true. I have but you know, I Firstly have never seen you clean anything. So I'm not sure I've never given this thing much thought I pay percentage commission only total per house. Yep. So Total 44 percent per house Okay, hey Sam's given made central a plug. Thank you, Samantha Yeah, they central does make all this really easy. Yeah, it's true Especially efficiency because it is tough to track. I used to make commission But people had a hard time understanding why they only got paid 45% of the job or what that equated to so then I switched to Buy the job pay. I know the percentage calculation, but they know on a three hour house They get paid $60 and that equals to $20 per job ticket. Yep. That's what we're just talking about And clean that house. It's like if they see 45% it's all they get they wonder if I'm paying myself 55% I'll still have a clue Okay, you're you're you're laughing. Hey, I've never seen him clean anything I've seen him hold the clock actually that's not true. I've seen you clean walls down whiteboard walls getting the In the war room cleaning You really scrub up on the on the war room that's for sure Okay, um Don't got it. We're out of time again. Yep. Sorry Tom We won't we're gonna we're gonna talk a little bit more about how commission and job ticket hour In particular can be used to increase your productivity and what that means to You're loaded direct payroll to revenue and then we're gonna we're gonna we're gonna go deep into Efficiency tomorrow Tom Sam wants to know if yeah, yeah, it does. Absolutely Job ticket hour was Relatively new. I mean it's been around for a while, but I mean well to me it's central actually been doing it for for a while We added that a while ago, but it was the last it was the last pay type that that we added Yes, we're I can and it does all the prerations for you So if you got multiple people on a team or somebody gets there later leaves early It does all the arithmetic for you. So you don't you don't need a spreadsheet anymore. Thank you Robin It is It is past time of the hour Right now Okay guys, we'll see you tomorrow Expectations and accountability to tomorrow is a big day. We're gonna start tying a lot of this together So hope to see you then bye bye