$300K GONE... The Cost of Being a BAD BOSS

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Something's broken that needs to be fixed.
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You have like 500% annual churn.
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Today we're in Indiana visiting John with Club Cleanz.
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Very much focused on the success of the business rather than the success of the people who worked in the business.
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That's just my biggest thing is care about your workers, okay, because life happens and shit happens.
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His commercial janitorial service will make $2.4 million in revenue this year.
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How much lost revenue from customers that were like, hey, we're canceling.
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The average over the last three years has been about 300,000 a year.
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But on average, his new employees only stay two months.
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The reason why I feel like people leave is because we throw them in a building and then an auditor comes behind and fails them in certain sections.
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Oh, this was missed.
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This was missed.
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The floors could be better here.
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Then they blame it back on the training like they didn't feel trained.
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This is the Business Turnaround Show.
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My name is Mike Andes.
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I'm the founder of Augusta Lawn Care and Homework Software.
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I travel the country fixing struggling businesses.
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Our goal is to give John a strategy to turn around the company in the next six weeks.
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So I would just hire comp with the biggest problem in the business, which is retention of the team.
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It's easier for managers because they don't feel like they're beating people over the head or uncompliance.
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You're just trying to help them.
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Hey there, my name is John Torres.
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I own and operate a commercial cleaning business.
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In 2025, we did about 2.4 mil.
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And unless we earn some new business, which I'm hopeful we will, we'll probably be somewhere closer to 2.2.
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It was just me and one other person.
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And today, we have somewhere between, depends on the week, 50 to 60 employees.
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He says he has about 20 to 24% profit margin, but he has a little bit of debt.
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But if you have that profitable business, it isn't really that big of a deal.
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But I'm really interested to see the labor percentage.
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And so what we will be digging in tomorrow is, we have 50 to 60 employees, assuming they're all W2s, and you have only 2.4 million in revenue.
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We're running like, we're skating either part-timers, 1099s, or we are very thin margins.
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I would say that the main struggles have to do with effectively leading a large team.
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And that's part of what led to some of the dip in potential revenue for this year was just a failure to come through for our clients.
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And so we're trying to figure that piece out.
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That's what we'll be digging into tomorrow, is how are we making this work?
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He's obviously running a very tight machine in terms of overhead and not having an office, et cetera.
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What can we do to make sure that he's able to lead the company and take it to the next level?
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Because two and a half million sounds good, but he obviously wants to go past 10 million.
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So what's the unlock?
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What's the constraints holding business back from doing exactly that?
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I love what you guys are doing to just help service businesses.
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I could definitely use some insight on how you're going about what you're going about.
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and what feedback you might have for us.
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Cleaner turnover rate is pretty high, but it varies on county.
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So we're in six different counties right now.
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This, LaPorte County, is our highest county, our county with the highest turnover rate.
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My recent walk-through though with Jordan, this is the best, like, the location has looked.
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What would you attribute it to?
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I think the location supervisor really understands the expectations.
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And he is consistently upholding the board, communicating when something is not right.
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So when's the last time you hit your website?
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Two.
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I mean, if I'm being honest, probably two years.
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Hey, guys.
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Hi.
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Have you graded the closet yet?
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No.
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No.
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From there, you know, I went from cleaning to training people to clean, to training people to train people to clean.
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Sorry, I didn't prep you, Tanya.
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I want to see you in action.
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She looks at Frankie.
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I know.
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She's like, bro, put me on the spot.
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And my position is managing partners, so I'm like over operations and client happiness.
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And I'm more just meeting with the sales team to make sure we're hitting our targets and staying focused and things like that, so.
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quite the journey from a cleaner to a supervisor to a manager and then it just made sense a couple of few years ago to take the next step in that progression and make her a partner so we've been operating that way for maybe two and a half almost almost two and a half years now how's it going all right what's up man good to see you man
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So maybe walk me a little bit through the background of the business.
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I know we started in 2018 and it's been growing quite a bit since then, but maybe just kind of give me a brief summary and what got you into cleaning in general.
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Well, what got me into cleaning in general was, um, I was backed into a corner.
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I had no choice, but to do something.
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Cause I relocated to this area, the Chicago land, Northwest Indiana area.
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With the intention of growing a real estate portfolio and opening up a franchise with my wife in Chicago, I had to file for bankruptcy because I had no way to deal with that.
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It was one of those moments where it was like, if he can do it, I for sure can do it.
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We had a huge account with like Buffalo Wild Wings.
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And so we ended up being the biggest we ever were by the end of the summer of 2020.
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They gave us our notice, essentially, and I was scared.
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Like, I wasn't sure what we were going to do because...
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Okay, so I've asked John one question that is like, tell me about how the business started.
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Usually this is a one to two minute answer.
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This has been 20 to 25 minutes of me listening to about the origin story of the business.
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And I'm okay with that.
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But if he's gonna lead a big business and attract great managers, I've gotta be succinct.
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I've gotta be to the point.
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And I've gotta give information to the people who need it, when they need it.
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And I can't take 25 minutes answering a simple question.
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And so when you look at the business and you say, hey, this year we're going to do 2.5.
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I want to go to 10.
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What do you see as a constraint?
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Like, why is it not that way already?
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Part of it is the losing business.
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And I haven't spent as much time as I would have liked on building out our lead generation in sales.
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Because I know if I do that, it's only going to exacerbate the problem.
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You feel like you want to expand.
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It's like, well, we just lost these three customers.
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Precisely.
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We can't manage the team.
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If we can't do here, how little are we going to do there?
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Yeah, I'd say the most significant one, early 2022, late 2021, about 35%.
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If you looked at 2025, how much lost revenue from customers that were like, hey, we're canceling.
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Do you know that number?
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I do.
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Yeah.
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So the average over the last three years has been about $300,000 a year.
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$300,000 of revenue churn.
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Of revenue churn.
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And those are customers that were signed up and they canceled.
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Yeah, we were under contract, and then they either gave us a notice before it was up, or when it was up, they said, see ya.
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$25,000 was really tough.
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It was a little over $400,000.
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And two accounts, or two locations, consisted of more than half of that.
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So if you lose a big account, it can have a big impact on you.
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And when they're canceling, are they citing quality control issues?
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Okay.
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The main thing that we're supposed to be auditing, which are consumables, floors, glass, and trash.
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So I look to see if they have the OSHA folder, the trade folder, closet standard, and core values.
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So she has like a site check, which is a site audit, in addition to checking the closets.
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It's always a toilet paper wasn't replaced, or the floors weren't cleaned, or the glass is smearing.
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How many locations are you doing this for?
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Do you know how many that is?
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I have no idea.
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Okay, cool.
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So I think there's two components to it.
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It's how do we stop the errors, and then how do we communicate in a process-oriented way so that we can even get ahead of this stuff in case there are errors.
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I mean, we're just humans, so of course we're going to make mistakes.
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We're going above our efficiency, we're doing a lot of rework, and there's still complaints.
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The good news is these are all solvable problems.
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When you have revenue churn and there's just quality control issues and it's an operations problem.
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And I'm gonna go out on a limb and say, you could care less about operations.
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You love sales and you love growth.
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And so I'm gonna spend more time actually with you because I feel like you actually have a lot of the perspectives that as entrepreneurs, we need to hear a lot more so that we can grow.
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But in order for us to grow, we need to have the confidence that when we sell the contract, that it's gonna be delivered on.
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Yes, 100%.
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And sometimes our speed makes your job very, very hard.
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So from your perspective... She's literally said, John, can you not get any more accounts?
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Can you slow down, please?
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Let us catch up.
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Okay, great.
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That's fantastic.
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So from your perspective, what is the kind of North Star for you to solve that problem?
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I think it's our employee turnover rate, correcting training, which I feel like we put some things in place in the beginning of 2026.
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We have one trainer now who does all of the working interviews and all of the training.
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Up is forward, right?
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And then left, okay.
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So up is left and then backward is right.
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and then we release them.
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One thing I wanna clarify because I confused Kamiya is when he's saying up, he's only talking about lifting the hand of our slightly up.
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There still seems to be a gap where they don't feel competent to go into a new facility.
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What you think, wanna give it a try?
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North, right, south, left.
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So, man, we'll figure it out.
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You got it.
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If it gets out of control, you let it go.
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Get out of control and just holler and let it go.
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Scream like a girl.
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No, don't scream.
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Don't scream?
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Press the button.
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Oh, press the button first.
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Then you got it.
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Yep, there you go.
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And then it's like creating growth for the team because they don't normally stay with us because they get a better opportunity.
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And I do get it's an entry level job.
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But from what I hear on the field from the team, it's like there's nowhere to go here or there's like a better opportunity for them.
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The reason why I feel like people leave is because we throw them in a building.
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We use the software for them to review.
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And they'll audit it.
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I think it's like once or twice a week, depending on
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their scheduling and stuff and our scheduling.
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And they'll go in the chat thing and be like, oh, this is from the audit, this is information.
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So it's like, oh, this was missed, this was missed.
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The floors could be better here.
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And then an auditor comes behind and fails them in certain sections.
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And then they'll be like, but this was good too, or this is good, but it's always more like things we need to do versus like, everything's great.
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Then they blame it back on the training.
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Like they didn't feel trained.
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Like I feel like I'm missing everything sometimes from
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the way that they put information in, especially because like the last couple months we've gone through a lot of staff here.
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And then there's been a lot of nights where I've cleaned this whole building by myself, which is so fun.
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Question for you.
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If you had to guess, if someone new joins a team member, how long are they on average staying around?
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Three months.
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Okay.
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Two months.
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I did the math recently.
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Two to three months.
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It depends on the role.
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Supervisors.
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Longer.
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Closer to five.
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Entry level, just cleaners.
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It's closer to two months.
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Yeah, the turnover rate is pretty high.
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I'm not going to lie to you.
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It's hard work.
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Yeah.
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Like, it really is hard work.
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It's not just like, oh, I'm in a vacuum of floors.
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You have to understand.
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Like, hotel cleaning is not like cleaning your house.
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Like, no, you're, like, actually cleaning places, and you're expected to do, like, certain things a certain way, and, like, a lot of people don't want to do that.
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I think a lot of younger people don't understand what it entails.
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The nighttime stuff gets too long, which I don't blame them, because it's hard for me to.
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Like, I have a five-year-old, so, like, I get off work, go home and sleep for, like, two hours, get up, take him to school.
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These are things you've seen for a long time.
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Why, in your opinion, have they not been fixed?
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Because it's been eight years now.
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I feel like we have improved in some areas, but then every time we grow, we're not sustaining it.
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The objective, too, with growth is we always want to grow to the moon, right?
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I've found more it's more of a stair step.
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It's like, hey, we grow.
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We get a big contract.
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Let's stop growth for a second and create infrastructure, right?
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And so in a business like yours where you have 20% plus profit, it's lumpy because of these cancellations slash mistakes that are happening.
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That doesn't give us confidence to go spend on marketing and growth or investing in the infrastructure.
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And so it's a cat and mouse game.
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I need the infrastructure to create good quality.
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I need good quality to have confidence to sell to be able to grow the business.
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If I'm going to pay a trainer to train them for three days, I'm going to pay a recruiter to onboard them, hire them, interview them, etc.
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And then I'm going to spend more money on a supervisor to make sure for the first week they're doing a good job.
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That means it's likely they aren't even profitable for the business until weeks four or five.
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Meaning out of the average two months, it is taking two to three weeks.
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00:12:46.781 --> 00:12:50.265
just to get them to being profitable and above zero for the business.
226
00:12:50.385 --> 00:12:56.452
It is very difficult if 30% of the average tenor is just spent getting them up to speed and training.
227
00:12:56.693 --> 00:12:58.354
I do see this as a training issue.
228
00:12:59.132 --> 00:12:59.472
All of it.
229
00:12:59.773 --> 00:13:01.314
They don't feel like they're joining a team right now.
230
00:13:01.814 --> 00:13:07.199
They feel like they're being, they're a mercenary coming to do these specific jobs, right?
231
00:13:07.599 --> 00:13:09.781
And so there's pros and cons to that.
232
00:13:09.921 --> 00:13:13.564
It's good because it's very efficient, but they are lacking a leader.
233
00:13:13.744 --> 00:13:17.227
If they were asked who they work for, they would probably mention the trainer's name.
234
00:13:17.468 --> 00:13:20.570
Right, or I get, I don't know who my supervisor is.
235
00:13:20.730 --> 00:13:23.733
During that training process, is there any orientation
236
00:13:24.253 --> 00:13:24.553
Yes.
237
00:13:24.593 --> 00:13:25.074
To the company?
238
00:13:25.094 --> 00:13:25.874
Okay, what does that look like?
239
00:13:25.894 --> 00:13:30.056
They do have orientation and they go back with our staffing guru.
240
00:13:30.316 --> 00:13:35.999
So she'll conduct a virtual training with all new hires and, I mean, a virtual orientation.
241
00:13:36.520 --> 00:13:40.402
They review the guidebooks and like who to contact for specific things.
242
00:13:40.702 --> 00:13:42.623
So she's the one who does the initial interviews.
243
00:13:43.743 --> 00:13:54.967
If they check the boxes as a core value match and just the typical, like you have a car, you recognize this as a night job, we're cleaning toilets, you okay with that?
244
00:13:55.167 --> 00:13:58.008
Then she would schedule them for training with our trainer.
245
00:13:58.728 --> 00:14:01.889
Three consecutive trainings is the goal.
246
00:14:02.089 --> 00:14:07.731
The ones who make it through that third one, they submit a form, a digital form after every night.
247
00:14:07.911 --> 00:14:09.652
Then they get sent the hire packet.
248
00:14:10.212 --> 00:14:18.681
And once they fill that out, then that week they're in orientation with the staffing coordinator to just give them more in-depth training on how to clean well.
249
00:14:18.921 --> 00:14:23.126
I'm scheduling them at a location that has a supervisor because not all the sites have a supervisor.
250
00:14:23.726 --> 00:14:28.191
So I'll schedule them at a location that has a supervisor so the supervisor is still giving them hands-on training
251
00:14:28.411 --> 00:14:37.055
I just don't know that with all of that new information in a short period of time that anybody would be able to fully retain and bookmark all the important things.
252
00:14:37.276 --> 00:14:40.958
And when people leave after two months, are you doing any exit interviews right now?
253
00:14:41.078 --> 00:14:43.299
They hadn't had great success with people doing it.
254
00:14:44.077 --> 00:14:44.337
Yeah.
255
00:14:44.718 --> 00:14:48.141
But sometimes when we part ways, it is because there's a violation of policy.
256
00:14:48.781 --> 00:14:50.503
And then I get feedback.
257
00:14:50.783 --> 00:14:51.043
Got it.
258
00:14:51.083 --> 00:14:59.751
So what percentage, if you have to look at people leaving, is it violation of policy versus lack of quality versus just, I'm just leaving to something else better?
259
00:15:00.311 --> 00:15:01.192
I would say 50-50.
260
00:15:01.372 --> 00:15:02.053
Okay.
261
00:15:02.153 --> 00:15:05.836
So 50% of it is like we're parting ways because they stink at their job.
262
00:15:06.817 --> 00:15:09.059
Or two is they want something better.
263
00:15:09.400 --> 00:15:09.680
Yes.
264
00:15:10.160 --> 00:15:12.741
Sometimes the team signs things that they don't read.
265
00:15:12.841 --> 00:15:17.602
So even though the guidelines are in the employee guidebook, there's not somebody on site to constantly.
266
00:15:17.622 --> 00:15:24.264
And I don't feel like everyone needs it, but like to remind them, hey, two absences equal like we're going to part ways in a month, you know.
267
00:15:25.464 --> 00:15:30.025
So I feel like we are still lacking communicating what our policies are.
268
00:15:30.946 --> 00:15:32.306
And then when they violate them,
269
00:15:33.275 --> 00:15:34.076
They don't even know.
270
00:15:34.116 --> 00:15:35.958
Yeah, that's the feedback I get.
271
00:15:36.098 --> 00:15:37.720
So this is their training folder.
272
00:15:38.080 --> 00:15:42.025
Routine cleaning is in the front, then it's periodic services, like towards the end.
273
00:15:42.125 --> 00:15:42.686
But yes, it is.
274
00:15:46.110 --> 00:15:47.271
He's actually missing a whole section.
275
00:15:47.671 --> 00:15:49.392
He has more folders hanging in here.
276
00:15:50.052 --> 00:15:53.253
I want to check to see if one of them has an accurate training card.
277
00:15:53.714 --> 00:15:54.034
Okay.
278
00:15:54.874 --> 00:15:58.116
So right here, it's like the daily restroom cleaning and we do step by step.
279
00:15:58.936 --> 00:16:02.818
So if ever the team forgets how to clean a restroom, this is what they use.
280
00:16:02.898 --> 00:16:06.660
And then our software for where they clock in and out tells us what to clean.
281
00:16:06.880 --> 00:16:21.833
I want to find a way to be more encouraging to the team because if I'm the one always receiving the negative feedback from the clients, I'm also then reporting it to the team and they don't want to hear more policy reminders on a Tuesday weekly meeting from me if I'm already telling them about the mistakes made.
282
00:16:22.374 --> 00:16:23.835
I feel like it tears them down more.
283
00:16:24.135 --> 00:16:30.501
Even though there's 60 employees, find a way to build relationship with people and point out more positives.
284
00:16:30.721 --> 00:16:38.024
There has to be a better way where the team can take more ownership of their sites and I can give more positive feedback.
285
00:16:38.265 --> 00:16:40.786
That way when the negatives come, it doesn't feel so heavy.
286
00:16:40.806 --> 00:16:42.827
And I feel like that area I lack.
287
00:16:42.947 --> 00:16:45.908
Instead of just all the complaints that are received.
288
00:16:46.228 --> 00:16:51.151
Because mistakes are constantly being emailed to me and I'm quick to just, Hey team, there's this.
289
00:16:51.191 --> 00:16:53.172
Because I also conduct their quarterly reviews.
290
00:16:53.972 --> 00:16:54.532
You do those?
291
00:16:54.732 --> 00:16:55.012
Yes.
292
00:16:55.453 --> 00:16:55.713
Okay.
293
00:16:55.913 --> 00:17:00.035
On a nightly basis, if they're calling out, are they talking to you?
294
00:17:00.495 --> 00:17:05.740
They are filling out a call-off form and it goes to our scheduling department, which I am then, yes, covering.
295
00:17:05.940 --> 00:17:06.240
Okay.
296
00:17:06.641 --> 00:17:11.625
And then the role the supervisor then is really just the people you hold responsible for?
297
00:17:11.866 --> 00:17:13.627
Their site that they're the supervisor of.
298
00:17:14.048 --> 00:17:14.268
Got it.
299
00:17:14.308 --> 00:17:16.710
Not over people as much as it is over their site.
300
00:17:16.950 --> 00:17:22.956
The challenging part, I guess, on that part is like if you're doing it every two and a half months, there's times where people don't even get to the two and a half month marker, right?
301
00:17:22.976 --> 00:17:24.097
Because they're lasting two to four weeks.
302
00:17:24.457 --> 00:17:29.822
The 4L framework shows the four reasons why every home service business stops growing.
303
00:17:29.902 --> 00:17:35.968
It's either a lack of liquidity, cash in the bank, a lack of leads, a lack of labor, or lack of leadership.
304
00:17:36.108 --> 00:17:37.630
Liquidity, I'm going to give you just like a pass.
305
00:17:37.650 --> 00:17:38.731
Like, it's fine.
306
00:17:38.811 --> 00:17:40.693
You're taking money out of the business, I assume, every month.
307
00:17:40.793 --> 00:17:40.993
Yeah.
308
00:17:41.173 --> 00:17:48.439
There's a little bit of debt on the business and cash isn't super high inside the business, but it's over 20% profitable and he's taking distributions.
309
00:17:48.679 --> 00:17:52.902
Let's just go through this and then we'll come back to what I think is the major constraint, which is the labor side.
310
00:17:53.282 --> 00:17:55.784
But for leads, are we doing any advertising right now?
311
00:17:55.884 --> 00:17:56.785
Are you in sales?
312
00:17:57.205 --> 00:17:57.805
Who's driving that?
313
00:17:57.986 --> 00:18:02.109
I definitely am the one directing all marketing efforts.
314
00:18:02.309 --> 00:18:07.693
And right now, the system we have in place is we have a virtual assistant who just lives on LinkedIn.
315
00:18:08.173 --> 00:18:10.754
and they're making connections, they're setting up calls.
316
00:18:10.974 --> 00:18:20.776
We have a cold calling service, and they're consistently calling 15 to 20 hours a week, and their whole goal is to set up walkthroughs.
317
00:18:21.056 --> 00:18:34.960
The sales consultant just submits right there on site a form kind of recapping the conversation, the estimation and scope details, and that gets shot off to our sales administrator, and they put together a proposal, and that takes about 24 hours to
318
00:18:36.520 --> 00:18:38.040
go from start to finish on all that.
319
00:18:38.240 --> 00:18:54.103
And then I have an SEO, Google, pay-per-click ad person who just mans that, makes sure all the buttons are working, stimulating and building out pages every month, and just making sure we're ranking and that that's doing what it's supposed to.
320
00:18:54.423 --> 00:18:56.464
And how many leads per week are you usually getting?
321
00:18:56.704 --> 00:19:01.084
We're doing about 15 consultations a month right now.
322
00:19:01.224 --> 00:19:03.905
I just call it one every other day, so 15 per month.
323
00:19:05.175 --> 00:19:07.499
And then out of that, 40% are closing.
324
00:19:07.579 --> 00:19:11.847
So we're looking at five, six new contracts a month.
325
00:19:12.007 --> 00:19:14.932
And then right now, are we seeing that same amount dropping off?
326
00:19:15.650 --> 00:19:16.491
No, thankfully.
327
00:19:16.511 --> 00:19:17.612
So like maybe two or three.
328
00:19:17.712 --> 00:19:19.594
The problem is because they can be bigger.
329
00:19:19.894 --> 00:19:24.759
You can go months, not lose anything, and then you lose one and then bam, you might as well have lost one every month.
330
00:19:24.899 --> 00:19:26.401
When we do get one drop off.
331
00:19:26.421 --> 00:19:27.362
It hurts.
332
00:19:27.562 --> 00:19:28.022
It hurts.
333
00:19:28.103 --> 00:19:28.343
Yeah.
334
00:19:28.363 --> 00:19:29.684
They're generating enough leads.
335
00:19:30.044 --> 00:19:33.488
The problem is we're losing a lot of customers out the back door.
336
00:19:33.628 --> 00:19:37.492
And so a lot of the problems that I have to focus on is labor and leadership.
337
00:19:37.632 --> 00:19:41.775
Anytime we are supply constrained with labor, it almost always is a training issue.
338
00:19:41.995 --> 00:19:52.443
Every single entry level position, the way to be able to scale it is nail training because it just trickles down in quality control, then churn, and then if you don't get good churn, like eventually just plateau the business.
339
00:19:52.724 --> 00:19:57.668
Something else that I wanted to mention though, when we are losing those people, I'm back out on the field covering.
340
00:19:57.828 --> 00:19:58.208
Really?
341
00:19:59.069 --> 00:19:59.429
shifts.
342
00:19:59.489 --> 00:20:01.591
Is that usually if a supervisor goes down?
343
00:20:01.691 --> 00:20:04.553
Even a cleaner if we don't have any supervisor in a specific area.
344
00:20:04.753 --> 00:20:15.581
Anytime I hear a manager stepping back into operations and doing the work of a technician, especially this size of business, 60, 70 employees, I immediately know that this is a system failure.
345
00:20:15.781 --> 00:20:21.506
In my opinion, the challenging part when you have a virtual business is very easy to go the way of compliance.
346
00:20:21.706 --> 00:20:24.808
What I mean by that is because I don't see them, I don't have the human connection as much.
347
00:20:25.148 --> 00:20:33.533
It's much like fill this form, then you do these three things, and then you show up here and you check these boxes, and then you get this, and then if you do these three things, you will get fired.
348
00:20:33.553 --> 00:20:36.675
And if you do these, it's all like very rule based because
349
00:20:37.035 --> 00:20:38.795
The business is built that way around automations.
350
00:20:38.995 --> 00:20:42.156
And so we treat everyone in the organization like an if-then statement.
351
00:20:42.296 --> 00:20:43.537
If this happens, do this.
352
00:20:43.977 --> 00:20:44.697
Then do this.
353
00:20:44.797 --> 00:20:45.937
If this is true, do this.
354
00:20:46.197 --> 00:20:48.598
I see this all the time when you have a distributed workforce.
355
00:20:48.638 --> 00:20:49.858
It just becomes all compliance.
356
00:20:50.358 --> 00:20:51.999
And it looks great on paper.
357
00:20:52.539 --> 00:20:56.300
But then how everyone solves quality control is more compliance.
358
00:20:56.600 --> 00:20:56.980
We just...
359
00:20:58.160 --> 00:21:03.221
went to what seemed natural for me, which is here's a system, let's follow the system.
360
00:21:03.241 --> 00:21:09.202
All right, you're not following the system, so we'll create some checks and balances to check that you're following the system the way you want.
361
00:21:09.242 --> 00:21:10.523
And if not, you know, see ya.
362
00:21:10.583 --> 00:21:12.383
For example, you gotta read the document.
363
00:21:12.463 --> 00:21:16.964
Okay, well, you gotta prove it, so you can't sign it for 10 minutes because we gotta make sure you read it.
364
00:21:17.004 --> 00:21:22.665
These are all the little things we start throwing in there to just work on compliance, when ultimately we are dealing with human beings.
365
00:21:23.025 --> 00:21:24.066
And that's why they'll leave.
366
00:21:24.506 --> 00:21:26.226
I've never loved that, but,
367
00:21:26.826 --> 00:21:27.987
It was what I knew how to do.
368
00:21:28.247 --> 00:21:30.188
And so I just did that.
369
00:21:30.328 --> 00:21:36.171
So it got us to where we are now, but I do see the cap on our growth if we don't change something.
370
00:21:36.271 --> 00:21:41.013
So you don't feel any connection to the team, the people behind the team, or the mission of the business.
371
00:21:41.614 --> 00:21:45.355
And just telling them those things, like the values, doesn't do anything.
372
00:21:45.916 --> 00:21:48.717
The number one reason the cleaners are coming here is because they want to make more money.
373
00:21:48.977 --> 00:21:50.998
If you're having a second job, you're not doing it for fun.
374
00:21:51.238 --> 00:21:52.339
You're not doing it because you enjoy it.
375
00:21:52.879 --> 00:21:53.720
You want to make more money.
376
00:21:54.420 --> 00:22:00.744
This is very good because now we can create a system that makes it very clear to them why staying longer means more money.
377
00:22:00.904 --> 00:22:07.468
If we can just get people to stay from two months to six months and triple the tenor of the cleaner, huge.
378
00:22:08.128 --> 00:22:10.389
Quality control, completely different.
379
00:22:10.489 --> 00:22:14.772
And so if I was you, I would be measuring that number religiously.
380
00:22:15.232 --> 00:22:16.032
When did they sign up?
381
00:22:16.092 --> 00:22:17.513
Like when did they initially join?
382
00:22:17.793 --> 00:22:18.474
When did they leave?
383
00:22:18.914 --> 00:22:20.815
And then we're measuring that over the course of time.
384
00:22:21.415 --> 00:22:22.196
That would be my North Star.
385
00:22:22.396 --> 00:22:29.001
Yeah, and the more I'm interacting with certain supervisors or certain cleaners, the longer they're staying.
386
00:22:29.622 --> 00:22:32.484
So the more personal you become and treat them like a person.
387
00:22:32.564 --> 00:22:36.027
I have felt you strain, like you feel the strain of that though.
388
00:22:36.147 --> 00:22:41.211
Yeah, I mentally, I'm not strong in that area and I'm... What part of it specifically?
389
00:22:41.371 --> 00:22:47.135
Yeah, listen man, listen, her boyfriend asked her to be his gal.
390
00:22:47.515 --> 00:22:49.457
Like that doesn't even happen anymore.
391
00:22:49.737 --> 00:22:50.618
Just the connection.
392
00:22:50.638 --> 00:22:51.480
Hearing people.
393
00:22:51.540 --> 00:22:51.820
Yeah.
394
00:22:51.860 --> 00:22:52.741
Oh, being a counselor.
395
00:22:52.781 --> 00:22:54.323
Being the counselor and stuff.
396
00:22:54.504 --> 00:22:58.169
Mine was like, I want nothing serious at all whatsoever.
397
00:22:58.229 --> 00:22:59.350
I'm going to see other people.
398
00:22:59.370 --> 00:22:59.951
I'm like, cool.
399
00:22:59.971 --> 00:23:01.814
As long as you understand, I'm going to do the same.
400
00:23:02.314 --> 00:23:06.600
And then when I started doing the same, then all of a sudden I was his girl to everybody.
401
00:23:08.343 --> 00:23:10.164
And what system do you use for your quarterlies right now?
402
00:23:10.304 --> 00:23:14.948
Like when you're doing a quarterly report, are you looking at kind of their sites, how many complaints they've had?
403
00:23:14.968 --> 00:23:25.295
We have a cleaner scorecard, so it measures their efficiency, call-offs versus pickups, client complaints versus compliments, and got your back scores, their audit scores.
404
00:23:25.930 --> 00:23:26.210
Okay.
405
00:23:27.191 --> 00:23:31.154
I know, it's very... Alright, so this is what I've been hearing, like, a lot.
406
00:23:31.474 --> 00:23:32.855
Scorecards, audits.
407
00:23:33.115 --> 00:23:36.137
These are two words that keep coming up over and over and over again.
408
00:23:36.438 --> 00:23:38.359
You know when I got a scorecard was when I was in school.
409
00:23:38.519 --> 00:23:39.440
No one enjoyed school.
410
00:23:39.660 --> 00:23:40.440
You know when you get an audit?
411
00:23:40.460 --> 00:23:41.261
From the IRS.
412
00:23:41.421 --> 00:23:42.862
No one enjoys an audit.
413
00:23:42.902 --> 00:23:50.748
Look, partly I'm saying these words just to get an emotion from them, for them to see how crazy it is to use these type of words like auditor when it comes to your team.
414
00:23:51.068 --> 00:23:54.291
Like I'm not gonna audit someone that I have a great relationship with.
415
00:23:54.591 --> 00:23:55.973
I might have a discussion with them.
416
00:23:56.233 --> 00:23:58.535
I might have a conversation, but I'm not gonna audit you.
417
00:23:58.695 --> 00:24:03.800
And this sort of terminology is just a downstream effect of having a culture of compliance.
418
00:24:04.021 --> 00:24:08.185
Even just the terminology around this stuff can be massaged a lot better.
419
00:24:08.425 --> 00:24:10.106
Like you guys have a cool name, Club Clean.
420
00:24:11.128 --> 00:24:15.432
All of this gets changed from scorecards into what club are you in?
421
00:24:15.812 --> 00:24:20.416
Scorecards and audits feels like I am working for a big corporation that has no soul.
422
00:24:20.636 --> 00:24:23.619
And if my only goal is making money, the minute I don't need that, I'm out.
423
00:24:23.779 --> 00:24:27.362
We are running this based upon compliance and we're running this like an automation, like a software.
424
00:24:28.162 --> 00:24:32.565
which is great until you have the constraint that you need human beings to be on board.
425
00:24:32.925 --> 00:24:39.269
You can tell whether or not there is a missionary or a mercenary leading a company based on how they talk about their team.
426
00:24:39.750 --> 00:24:44.653
So if they talk in terms of they don't do these things, these checklists, audits, compliance,
427
00:24:45.153 --> 00:24:45.754
standards.
428
00:24:46.215 --> 00:24:46.475
Cool.
429
00:24:46.575 --> 00:24:49.219
All those things are important, but that's a mercenary speaking.
430
00:24:49.580 --> 00:24:52.924
A missionary is going to speak to the vision of the business and why we're doing this.
431
00:24:53.365 --> 00:25:01.917
And then they depend more on the heart leading their team towards that mission than them following the checklist of do's and don'ts that they've prescribed.
432
00:25:01.997 --> 00:25:06.042
For example, we implemented a one-on-one system where it's called high-low buffalo.
433
00:25:06.163 --> 00:25:09.687
So it's like, hey, I'm gonna share a high, then you share a high, personally.
434
00:25:09.707 --> 00:25:12.131
Okay, now you share a low, I'll share a low.
435
00:25:12.311 --> 00:25:17.358
And then buffalo is, tell me something I don't know about you and I'll tell you something you don't know about me.
436
00:25:17.798 --> 00:25:23.961
And then you as a manager can customize what you say back to them based upon what you know about them.
437
00:25:24.021 --> 00:25:35.566
So for example, if I'm talking to a single mom that has two kids and I know she's working at night, I'm gonna say something very different for my buffalo, things that she doesn't know about me, compared to a single guy that's at college and just trying to make an extra buck.
438
00:25:35.766 --> 00:25:39.668
And so now you create this personal connection that then leads into the professional side.
439
00:25:39.728 --> 00:25:41.549
Okay, what's your personal goal?
440
00:25:42.069 --> 00:25:43.230
Like I need to know their goals.
441
00:25:43.470 --> 00:25:45.811
Probably just providing for my son.
442
00:25:46.833 --> 00:25:49.714
I don't like even being asked this question because I don't plan anything.
443
00:25:49.955 --> 00:25:53.556
So I can align Club Clean with how do we make those goals happen?
444
00:25:53.696 --> 00:25:54.537
And it doesn't have to be direct.
445
00:25:54.577 --> 00:25:55.978
It's like, well, I want to become a trucker.
446
00:25:56.478 --> 00:26:00.020
Okay, well, being a trucker, cleaning, how do we connect those two?
447
00:26:00.040 --> 00:26:03.201
I always wanted to be a beautician, always.
448
00:26:03.922 --> 00:26:10.145
Well, if we have a system in place, a career progression that they're moving up into, and one of those is that they lead one of the team meetings,
449
00:26:11.025 --> 00:26:16.331
Now all of a sudden, the ability to communicate publicly is a skill they can use towards their personal goal.
450
00:26:16.431 --> 00:26:21.817
And so I want to try to incentivize or I want to align their personal goal with the business goal.
451
00:26:22.357 --> 00:26:28.004
Being able to actually provide for my kid by myself when I had to rely on someone else before is like really nice.
452
00:26:28.604 --> 00:26:30.585
And then like they made me a supervisor worth a year.
453
00:26:30.605 --> 00:26:32.966
Like I was only here like six months and they made me a supervisor.
454
00:26:32.986 --> 00:26:34.706
I would create clubs of cleaners.
455
00:26:35.527 --> 00:26:37.167
Like club clean and club cleaners.
456
00:26:37.807 --> 00:26:39.628
And you have different clubs that they move up into.
457
00:26:40.428 --> 00:26:44.990
And then there's incentives and money should be attached to it because that's the main objective here.
458
00:26:45.470 --> 00:26:46.570
They're coming here for money.
459
00:26:46.590 --> 00:26:48.171
Let's not beat around the bush.
460
00:26:48.231 --> 00:26:50.352
It's not just about incentives though.
461
00:26:50.392 --> 00:26:51.212
You know what I mean?
462
00:26:51.232 --> 00:26:51.672
That's great.
463
00:26:51.732 --> 00:26:52.512
Everybody wants money.
464
00:26:52.553 --> 00:26:55.153
Everybody wants, you know, and especially nowadays.
465
00:26:55.634 --> 00:26:56.654
Me and my son wouldn't.
466
00:26:57.486 --> 00:26:58.788
be in the position that we are now.
467
00:26:59.048 --> 00:27:00.990
And like, I just got us like a car and everything.
468
00:27:01.030 --> 00:27:03.674
So it's been like a huge, like 360.
469
00:27:03.834 --> 00:27:06.036
My biggest thing is at the end of the day, I want,
470
00:27:07.344 --> 00:27:12.248
The company that I work for to be understanding and to care is my biggest thing.
471
00:27:12.429 --> 00:27:14.350
Tying those two things together is the unlock.
472
00:27:14.791 --> 00:27:16.612
I would create clubs that they move up and do.
473
00:27:16.852 --> 00:27:17.813
Would it be around reviews?
474
00:27:18.154 --> 00:27:19.595
Would it be around taking on more sites?
475
00:27:19.795 --> 00:27:21.316
So for example, are you a one site person?
476
00:27:21.336 --> 00:27:22.117
Are you a two site person?
477
00:27:22.137 --> 00:27:22.718
Are you a three site?
478
00:27:22.978 --> 00:27:26.581
Like now they have incentive to get more sites instead of you hiring more cleaners.
479
00:27:26.781 --> 00:27:29.303
So right now, like for a cleaner, what is the entry level wage?
480
00:27:30.084 --> 00:27:31.026
per hour?
481
00:27:31.046 --> 00:27:31.146
14.
482
00:27:31.688 --> 00:27:32.008
14.
483
00:27:32.309 --> 00:27:33.712
And what's the flexibility there?
484
00:27:33.732 --> 00:27:34.774
Is it 14 to 15?
485
00:27:34.894 --> 00:27:36.778
Is there any, is it just like it's 14 all the time?
486
00:27:36.918 --> 00:27:37.520
It's always 14.
487
00:27:37.600 --> 00:27:37.940
Okay.
488
00:27:38.201 --> 00:27:41.027
And what's the progression on that as a cleaner?
489
00:27:41.067 --> 00:27:41.468
There's none.
490
00:27:42.420 --> 00:27:44.482
I mean, they could become a location supervisor.
491
00:27:44.502 --> 00:27:46.243
We have promoted people from within.
492
00:27:46.504 --> 00:27:46.764
Okay.
493
00:27:46.944 --> 00:27:48.725
That pays between like $16 and $18.
494
00:27:49.266 --> 00:27:53.089
Some, I mean, do we have anybody higher than that on that role?
495
00:27:53.710 --> 00:27:53.930
Yeah.
496
00:27:54.110 --> 00:27:57.172
I think that might climb up to close to $20.
497
00:27:57.533 --> 00:28:00.976
And those people that are up against $20, for example, what are they?
498
00:28:01.316 --> 00:28:02.337
Have they just been around for a long time?
499
00:28:02.817 --> 00:28:04.038
It's before we restructured.
500
00:28:04.118 --> 00:28:09.723
So it is, that was based off of how many hours they overseen, not how many locations.
501
00:28:09.883 --> 00:28:16.149
So if a location equals 35 hours per week and they take on another location, that equals 20 hours.
502
00:28:16.209 --> 00:28:18.551
So we have like a pay bracket.
503
00:28:18.571 --> 00:28:21.133
If you oversee in 40 hours, then this is what you get.
504
00:28:21.153 --> 00:28:22.675
If you oversee 50 hours, it's what you get.
505
00:28:22.695 --> 00:28:23.455
That was in the past.
506
00:28:23.495 --> 00:28:25.817
So anyone that's making that higher wage has been here for a long time.
507
00:28:25.998 --> 00:28:26.218
Yeah.
508
00:28:26.658 --> 00:28:27.439
That is an unlock.
509
00:28:27.900 --> 00:28:28.841
They're making more money.
510
00:28:28.921 --> 00:28:30.002
They have stayed around longer.
511
00:28:30.162 --> 00:28:30.443
Yeah.
512
00:28:30.723 --> 00:28:30.943
Right?
513
00:28:31.143 --> 00:28:35.789
So, like, the people who have been here the longest, I'm assuming, are on that old pay structure, and they're making 19, 20 bucks an hour?
514
00:28:36.430 --> 00:28:36.990
Some of them.
515
00:28:37.170 --> 00:28:37.371
Yeah.
516
00:28:37.511 --> 00:28:37.791
Okay.
517
00:28:38.312 --> 00:28:39.353
And how long have they been here?
518
00:28:39.373 --> 00:28:40.334
Two, three, four, five years?
519
00:28:40.675 --> 00:28:43.738
Longest supervisor is two and a half years.
520
00:28:43.858 --> 00:28:44.259
Whoa.
521
00:28:44.579 --> 00:28:44.880
Wow.
522
00:28:45.100 --> 00:28:45.921
That's a lot of churn.
523
00:28:47.762 --> 00:28:48.083
Mercy.
524
00:28:48.443 --> 00:28:51.845
That, that you've like 500% annual churn.
525
00:28:52.145 --> 00:29:00.049
If you just got a new job and within the first week, five or 10 people leave the chat or the people that you're working with, they get fired.
526
00:29:00.529 --> 00:29:02.971
The people that you're working with are like moving on to something new.
527
00:29:03.131 --> 00:29:06.112
You immediately are like, oh, this is not a place I build a career.
528
00:29:06.272 --> 00:29:09.634
Hardly anyone here has worked here for more than six, eight or 10 months.
529
00:29:09.754 --> 00:29:11.015
No one's sticking around for a year or two.
530
00:29:11.095 --> 00:29:16.318
That doesn't lead me to think as a new employee that this is a place I can build my career and move up inside the company.
531
00:29:16.458 --> 00:29:23.746
I think a really clear career map with incentives that start you at 14 but get you to pay about 18 would be the goal.
532
00:29:24.427 --> 00:29:28.411
Because my question is, if someone stayed here for three years, are you willing to pay them 18?
533
00:29:28.451 --> 00:29:28.672
Yeah.
534
00:29:29.452 --> 00:29:33.036
Because that's 15 times longer than the average.
535
00:29:33.056 --> 00:29:33.557
Yeah.
536
00:29:34.275 --> 00:29:37.396
and I didn't have to train 15 other people otherwise.
537
00:29:38.437 --> 00:29:39.618
That's the cost you're saving.
538
00:29:39.718 --> 00:29:48.222
Whether it be the person onboarding them, training them, the site supervisor, all the back and forth, setting up and payroll, all of that gets saved 15 times if they just stay here two, three years.
539
00:29:48.542 --> 00:29:53.184
And so some of this is gamifying it because you're like, well, how do I change the title of a cleaner?
540
00:29:53.584 --> 00:29:54.504
We can have a junior cleaner.
541
00:29:55.545 --> 00:29:56.245
We can have a cleaner.
542
00:29:56.325 --> 00:29:57.246
We can have a senior cleaner.
543
00:29:57.961 --> 00:29:59.381
We can make a team lead.
544
00:30:00.162 --> 00:30:05.603
We can create, along with those clubs, is titles, recognition, and compensation.
545
00:30:05.843 --> 00:30:13.065
Whether it be five steps, 10 steps, 12 steps, you're simply trying to get them to buy into this idea that this is not a dead-end job.
546
00:30:13.285 --> 00:30:15.366
If you just say, hey, you're making $14 an hour, you're cleaner.
547
00:30:15.666 --> 00:30:20.847
As soon as any good performer is two or three months in, they realize, oh, there's nowhere for me to go, they're out.
548
00:30:20.927 --> 00:30:22.228
Because they'll just go to the next job after $15 an hour.
549
00:30:22.248 --> 00:30:22.408
Yeah.
550
00:30:23.924 --> 00:30:24.585
or $16 an hour.
551
00:30:25.106 --> 00:30:33.739
I would really encourage that during the onboarding, most of it is not about the company and compliance and how your employee handbook is looking and two times off.
552
00:30:33.759 --> 00:30:34.840
Like yeah, that has to get done.
553
00:30:34.980 --> 00:30:37.885
The first thing we're talking about is you, the employee.
554
00:30:38.586 --> 00:30:39.327
It's all about them.
555
00:30:40.233 --> 00:30:45.396
It's almost the orientation could just be a deep dive on here's a path to growth for you in this company.
556
00:30:45.636 --> 00:30:47.777
Here at Club Clean, we do not believe in dead-end jobs.
557
00:30:48.017 --> 00:30:50.138
We believe in being able to get you to the next stage of your career.
558
00:30:50.379 --> 00:30:53.520
And for some of you, that is get through college debt-free.
559
00:30:53.720 --> 00:30:58.143
For some of you, that's being able to pay off some debt that's been lingering over your student loans.
560
00:30:58.443 --> 00:31:02.445
For some of you, this is being able to fill in the gaps so you can make ends meet for your kids at home.
561
00:31:02.545 --> 00:31:03.587
We're not judging you on that.
562
00:31:03.687 --> 00:31:06.711
We're just gonna give you a path to make more money and move up inside the company.
563
00:31:07.032 --> 00:31:11.017
And we're gonna make sure that at every single one-on-one, we know what your goals are personally, those other things.
564
00:31:11.598 --> 00:31:14.723
And then we're gonna try to align the goals of the business with your goals.
565
00:31:14.963 --> 00:31:17.106
You need to set that two sentences.
566
00:31:18.167 --> 00:31:18.588
Two minutes.
567
00:31:19.008 --> 00:31:25.213
At the beginning of an orientation, you have a very different mindset going into a very compliance-driven organization, which needs to be that way.
568
00:31:25.593 --> 00:31:28.575
Because you don't have as much oversight on eyes with them.
569
00:31:28.795 --> 00:31:33.458
And yes, I can talk about pay for performance and how do we actually give them incentives based upon quality control.
570
00:31:33.479 --> 00:31:34.659
Yes, we can talk about that.
571
00:31:35.140 --> 00:31:40.824
But if you just get them to buy into the logic that if you stick around here, you make more money, you get recognition, and you get a new title.
572
00:31:42.133 --> 00:31:42.694
That's meaningful.
573
00:31:43.174 --> 00:31:48.479
The reason I'm trying to build this second type of culture is because it unlocks something called discretionary effort.
574
00:31:48.499 --> 00:31:55.826
This is the effort where people don't have to give it and they'll keep their job if they don't give it, but it's also the thing, the ideas that come in the shower.
575
00:31:55.866 --> 00:31:59.890
It's when they're driving, I'm thinking about solutions for the business, the ability to pick up extra shifts.
576
00:31:59.970 --> 00:32:05.255
All that discretionary effort is not given to a business when I'm thinking only about compliance.
577
00:32:05.475 --> 00:32:16.766
You know, and if they get to the next stage and then you show up with a certificate at their job site or someone else does, it's a, hey, congrats, picture, selfie with them, giving them a gift basket, put that on the team chat.
578
00:32:17.767 --> 00:32:18.468
Very different.
579
00:32:18.488 --> 00:32:20.410
Now people start paying attention to the team chat.
580
00:32:20.590 --> 00:32:20.930
Yes.
581
00:32:21.971 --> 00:32:22.191
Right.
582
00:32:22.471 --> 00:32:24.012
And they're going to come to a one-on-one like, Hey, okay.
583
00:32:24.052 --> 00:32:29.274
I'm one more review away from unlocking the next stage, which gives me an extra 50 cents an hour, which I'm really needing.
584
00:32:29.694 --> 00:32:29.974
Okay.
585
00:32:30.234 --> 00:32:32.355
Now you say, here's how we make sure that happens.
586
00:32:32.635 --> 00:32:35.137
So go ahead and get a QR code, put the review link in there.
587
00:32:35.417 --> 00:32:41.159
And then when you, if you see someone where you can slide them a note with a thank you or say it was great servicing your property and leave the QR code in there.
588
00:32:41.259 --> 00:32:45.484
Now you are helping them get to the next stage of their career, making it helping them get close to their goals.
589
00:32:45.724 --> 00:32:49.588
Right in front of John is the mission for why this business exists.
590
00:32:49.769 --> 00:32:52.071
He was in a really bad situation financially.
591
00:32:52.552 --> 00:32:54.013
He was upside down on a ton of debt.
592
00:32:54.114 --> 00:33:02.383
And if he could just open his eyes to the fact that his employees are in that exact same place, they're having to work a second job overnight after their nine to fives already done.
593
00:33:02.563 --> 00:33:12.389
We came up with goals that admittedly were very much focused on the success of the business rather than the success of the people who worked in the business.
594
00:33:12.689 --> 00:33:25.237
And if he could just put himself back into how he felt and the emotion that he was feeling years ago, he'd be able to have a lot of empathy and care and passion for helping his employees get out of their bad situation.
595
00:33:25.358 --> 00:33:30.521
I think that's some of the work that Frankie and I need to do in response to this meeting is...
596
00:33:30.901 --> 00:33:35.283
redefine and discover for ourselves what the mission is.
597
00:33:36.063 --> 00:33:40.366
I think the next thing I would say is like an onboarding path, which is like 30, 60, and 90 days.
598
00:33:40.706 --> 00:33:47.629
So if their first one-on-one is a quarter, that's too long because our average employee tenor is not making it to one of those.
599
00:33:47.949 --> 00:33:54.234
I would figure out what your 30, 60, 90 is, and I would probably align those like stage one, stage two, stage three of your career map.
600
00:33:54.415 --> 00:33:57.777
So that way in the meeting, you'd be like, hey, are we falling behind a little bit?
601
00:33:58.438 --> 00:33:59.319
How do we get you next stage?
602
00:33:59.499 --> 00:34:04.303
If you're going from 14 to $18 an hour of course of three years, for example,
603
00:34:04.443 --> 00:34:11.409
Their first one could be a 25 cent bump, then it's a 50 cent bump, then it's a 75 cent bump, then it's a dollar bump, and then the next one's like a dollar and a dollar.
604
00:34:11.429 --> 00:34:14.112
Like you could really make it, ramp it up.
605
00:34:14.272 --> 00:34:17.114
Because what's not showing up on the P&L right now is the cost of churn.
606
00:34:17.274 --> 00:34:20.938
And I think we could talk a lot about like quality control and the systems and like,
607
00:34:21.358 --> 00:34:25.601
what we call yellow slips callbacks, that all kind of gets solved when you just have employees that have been around for a long time.
608
00:34:25.621 --> 00:34:27.001
They know the site's at the back of their hand.
609
00:34:27.301 --> 00:34:28.342
They start to pick up on other stuff.
610
00:34:28.362 --> 00:34:29.263
They go through it quicker.
611
00:34:29.323 --> 00:34:31.004
They know what doors to look behind.
612
00:34:31.044 --> 00:34:35.726
Just all the nuances that someone just needs to be around long enough to find out or figure out.
613
00:34:35.906 --> 00:34:41.270
What you can do is tie your stages for them to move up into to tangible things like reviews,
614
00:34:42.070 --> 00:34:44.170
like upsells, these are things that are really tangible.
615
00:34:44.230 --> 00:34:47.751
It's hard to be like, have a good score or like have a good quality.
616
00:34:47.771 --> 00:34:49.271
Like you gotta make it really specific.
617
00:34:49.311 --> 00:34:55.812
So we have like number of reviews, number of upsells, like all the little things that, you know, if someone does, they're doing a good job.
618
00:34:55.933 --> 00:34:58.253
Doing a good job is a side benefit.
619
00:34:58.653 --> 00:35:01.173
It's a downstream effect of something else happening.
620
00:35:01.393 --> 00:35:04.874
Because someone's getting a bunch of positive reviews, you're not having quality control problems.
621
00:35:05.574 --> 00:35:09.235
So I just go after the positive thing, which is the positive review instead of like compliance.
622
00:35:10.193 --> 00:35:17.516
audits, you know, like your auditor should be something much more along the lines of someone that like, they're supposed to find things that are happening good.
623
00:35:17.776 --> 00:35:19.056
Like use the carrot instead of the stick.
624
00:35:19.436 --> 00:35:21.877
An auditor coming behind me, it does not sound great.
625
00:35:22.157 --> 00:35:29.520
As much as we talked about training, keep in mind that how to wash something, how to vacuum, how to clean is a technical skill.
626
00:35:29.800 --> 00:35:30.880
And that is important in training.
627
00:35:30.960 --> 00:35:38.543
But honestly, if they just spent 20, 30 minutes at the beginning of a three day training session and focused on the goals of the employee and
628
00:35:38.963 --> 00:35:48.153
why we do what we do, if that was answered, I believe there'd be a whole lot better quality output from the training that ensues over the next three days.
629
00:35:48.353 --> 00:35:54.059
Yeah, because otherwise, if you say, hey, it's $14 an hour, and your incentive is that you don't get fired, because that's how everyone thinks.
630
00:35:54.560 --> 00:35:59.345
Like, if that's the way we think, then their goal is to do as little as possible without getting fired.
631
00:35:59.545 --> 00:36:00.887
That's their goal.
632
00:36:01.247 --> 00:36:01.988
We feel that.
633
00:36:02.028 --> 00:36:03.149
That's exactly what we feel.
634
00:36:03.230 --> 00:36:04.451
It feels like horrible.
635
00:36:05.312 --> 00:36:06.033
And so like.
636
00:36:06.053 --> 00:36:08.636
How many times you've called me and said this location looks awful.
637
00:36:08.916 --> 00:36:09.817
That's her word awful.
638
00:36:09.957 --> 00:36:10.198
Yeah.
639
00:36:10.478 --> 00:36:17.887
And so we just changed that to how much more can I get done so I can make more money and be able to accomplish my goals and dreams as an employee here.
640
00:36:18.187 --> 00:36:22.631
It makes it way easier to do reviews, compliance audits, whatever you want to call them.
641
00:36:22.651 --> 00:36:29.717
You may even look forward to it because you're actually seeing very tangibly how I'm helping them achieve their goals.
642
00:36:30.017 --> 00:36:34.201
That would give me so much life because I do like when I can make an impact on them personally.
643
00:36:34.361 --> 00:36:36.162
Now you feel like you're actually making a positive effect.
644
00:36:36.182 --> 00:36:38.783
This is now the club connection, not the audit.
645
00:36:39.183 --> 00:36:43.224
So I would just tie your comp with the biggest problem in the business, which is retention of the team.
646
00:36:43.384 --> 00:36:44.505
I 100% agree with that.
647
00:36:44.645 --> 00:36:48.566
It's easier for managers, because they don't feel like they're beating people over the head or on compliance.
648
00:36:48.786 --> 00:36:50.407
It's, you're just trying to help them.
649
00:36:50.567 --> 00:36:52.268
And if they don't want to help themselves, that's, we can't.
650
00:36:52.288 --> 00:36:53.048
That's on them, yeah.
651
00:36:53.368 --> 00:36:54.129
They're out pretty quick.
652
00:36:54.149 --> 00:36:58.372
But you don't even feel the weight of that now, because they're just rejecting an opportunity to help.
653
00:36:58.392 --> 00:37:00.114
Yeah, I'm just trying to get them closer to the goal.
654
00:37:00.134 --> 00:37:01.535
I know that they want to pay off this debt.
655
00:37:01.635 --> 00:37:03.056
I know they're trying to provide for their family.
656
00:37:03.076 --> 00:37:04.377
This is why they're doing the job.
657
00:37:04.838 --> 00:37:05.939
Let's try to get them closer to that.
658
00:37:06.179 --> 00:37:06.799
Cool.
659
00:37:06.960 --> 00:37:16.588
I know that's a lot in a very narrow area, but I do think it is the causing all the other downstream things that we've talked about, and it will solve everything.
660
00:37:16.748 --> 00:37:20.871
This is honestly some of the best advice I've received in business in a long time.
661
00:37:22.092 --> 00:37:31.062
And even in the last year, I've paid serious money to have consultation, to be part of communities, to get education.
662
00:37:31.082 --> 00:37:40.072
And I don't feel like it was as impactful as however long it was we sat down here and he came to me, which is like mind boggling.
663
00:37:40.232 --> 00:37:43.435
So I'm like super grateful for Mike and his team.
664
00:37:44.236 --> 00:37:47.563
his time and attention to the details of our business.
665
00:37:48.444 --> 00:37:53.234
And you'd be stupid to at least not apply to see if you'd be a good fit for it.
666
00:37:56.683 --> 00:38:10.477
I did kind of immediately take some action on that and, and met with some of my support and supervisors and management, um, in the team on the team, which, you know, it's just a handful of us, but I wanted it to be collaborative.
667
00:38:11.358 --> 00:38:13.961
Um, and then ended up creating a cleaner growth path.
668
00:38:13.981 --> 00:38:14.041
Um,
669
00:38:15.102 --> 00:38:27.714
along with certificates for hitting every single one, as well as the benchmarks that they would need to reach to unlock essentially the next certificate of completion or however you would call it.
670
00:38:28.294 --> 00:38:35.021
Starting out, like the day one, you're onboarded, you get put on the shift for the first time, you're a cleaning recruit.
671
00:38:35.861 --> 00:38:40.906
And right now we pay everybody 14 bucks an hour if they're just a cleaner coming in.
672
00:38:41.646 --> 00:38:43.207
And so we kind of keep that the same.
673
00:38:43.688 --> 00:38:46.770
Bacon, bring home the bacon is one of our core values.
674
00:38:46.790 --> 00:38:47.951
So I kind of leverage that.
675
00:38:48.492 --> 00:38:50.593
And it basically is just, you just show up reliably.
676
00:38:50.914 --> 00:38:54.336
And so the metric there is you don't call off for the first 30 days.
677
00:38:54.476 --> 00:39:00.301
And if you can just not do that, just show up to your scheduled shifts, you unlock another one.
678
00:39:01.442 --> 00:39:03.723
And so we kind of just kept going down that line.
679
00:39:03.843 --> 00:39:06.984
And then the last, you know, kind of the last one here is the Mentor Club.
680
00:39:07.365 --> 00:39:15.568
By this time you have you've created or or at least hosted a workshop where you're helping other people in these first kind of stages.
681
00:39:15.828 --> 00:39:23.271
And so now you're paying it forward as you have been able to move along this path yourself.
682
00:39:23.571 --> 00:39:27.333
And you've had multiple raises over the course of a couple of years.
683
00:39:28.093 --> 00:39:33.795
The way I kind of envision it is every quarter we're having like an all day workshop that anybody can attend.
684
00:39:33.875 --> 00:39:37.777
And if you've hosted one of those, then you've unlocked that final mentor club.
685
00:39:38.077 --> 00:39:39.458
I haven't implemented it yet.
686
00:39:40.378 --> 00:39:44.780
So we have my, like Frankie, she's going on maternity leave like very soon.
687
00:39:45.840 --> 00:39:49.742
And we just hired a new like night manager.
688
00:39:49.762 --> 00:39:49.822
So.
689
00:39:50.922 --> 00:39:55.925
That's been our focus right now is getting them like onboarded and like in.
690
00:39:56.605 --> 00:40:02.588
And one of their first kind of initiatives is going to help me in implementing this fully.
691
00:40:02.968 --> 00:40:06.030
And so I took like the artwork itself and I just...
692
00:40:06.890 --> 00:40:08.492
opted out of that graphic.
693
00:40:09.092 --> 00:40:15.919
And my goal was to like create buttons for these that they can put on there or like pins they can put on their smocks.
694
00:40:16.160 --> 00:40:22.326
And so you don't even need to know who the person is, but if you see them with their smock on, you're gonna be able to know what club they're in.
695
00:40:23.043 --> 00:40:24.204
So that was the idea for that.
696
00:40:24.904 --> 00:40:33.531
And then I created like certificates of completion to basically show up, hey, you've graduated.
697
00:40:33.551 --> 00:40:38.134
And we take a picture and leverage it kind of like Mike was mentioning.
698
00:40:38.354 --> 00:40:41.497
So we just we did all those kind of consistent with the theme itself.
699
00:40:41.757 --> 00:40:48.782
So the goal is in the next two weeks, we will officially have announced this and started integrating it
700
00:40:50.303 --> 00:40:55.365
into the interviews, into the training, and just into the vernacular of the whole team.
701
00:40:55.625 --> 00:41:00.767
I want to have a competitive but fun environment.
702
00:41:01.107 --> 00:41:05.528
You know, one where we feel like we're collaborating and working together towards something.
703
00:41:06.329 --> 00:41:14.732
And so, without even realizing it, I kind of created a company that didn't match that desire.
704
00:41:14.972 --> 00:41:15.372
And so,
705
00:41:16.152 --> 00:41:18.575
It was sort of a wake-up call, like hearing that.
706
00:41:19.256 --> 00:41:23.222
So that was the one thing that's been ringing true the most.
707
00:41:23.362 --> 00:41:33.095
And we've already, even before rolling it out, but just I think the mere fact that we're working towards this has already kind of opened the door, and we're seeing the turnover rate start to get better.
708
00:41:33.376 --> 00:41:34.918
So that's a positive as well.