Cleaning Company Average Wage percentage?

Cleaning Company Average Wage Percentage?

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I have a Ltd cleaning company client, who turns over circa £200k net servicing mainly corporate customers and some private customers. 

I have no other cleaning company clients to compare it to, and I know they pay the Living Wage to 17 employees (all over 25 and I just wondered if anyone has an idea of a reasonable level of wages to turnover for this industry?  

Gross wages are currently showing £120k (the Director takes very little salary out of £1,500 pa, as already has other personal income).  I just wondered if this wage figure was high?

Thanks in advance.

Replies (4)

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By Account_Ants
24th Jan 2017 10:18

Well if you have 17 other employees & 120k wages it amounts to ~7k per employee which doesn't sound unreasonable.

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Replying to Account_Ants:
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By Carolynne
24th Jan 2017 13:31

Hi thanks for your response, I agree £7K doesn't sound unreasonable. But is the turnover too low for the wages paid, as what I am looking at is, if all income is being declared etc. It is the wage total compared to the turnover level percentage I am trying to ascertain.

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paddle steamer
By DJKL
24th Jan 2017 13:00

Well, looking at our office cleaning, we pay £30 plus vat per week, they come in on a Friday evening or Saturday or Sunday. The times I have been in working at the weekend it is usually two guys and they take roughly an hour, so allow say 1.25 hours with travelling time.

So charge out is 2 times 1.25 equals 2.5 hours for £30, say £12 per person per hour.

Work back from your wages paid (remember to discount hours paid re those for holiday pay say 48/52) to get hours worked, multiply by £12 and compare with turnover .

Above is best undeducated stab and am sure may differ region/city to region/city.

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Replying to DJKL:
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By Carolynne
24th Jan 2017 13:36

Thanks. Just basing it on your second para, £24 paid to employees for £30 net fee, would give us 80% wages against turnover.

Based on my £120k against £200k net turnover would give 60% without having taken holiday pay off first. So perhaps it is an acceptable level for the net turnover achieved.

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