How the Labor Shortage is Impacting the Cleaning Industry

By John Dorer, CEO, eb3.work

The cleaning industry, like many others, has been severely impacted by the ongoing labor shortage. Lack of workers has raised costs while negatively impacting quality, and the longer it goes on the more pressure it puts on existing staff. If the industry does not find solutions, this labor shortage could spiral out of control as over-worked employees will burn out and leave. This could be extremely difficult for businesses to overcome.  

Without a stable workforce, facility cleaning departments and building service contractors will struggle to meet the growing demand for sanitation and hygiene services, particularly in industries where cleanliness is critical, such as healthcare, education, and hospitality.  

Additionally, this is all happening at a time when the demand for such services is growing for the same reason that this labor shortage began in earnest. The global pandemic increased the need and desire for quality cleaning services at the same time it drastically reduced the workforce available to the industry. 

Employee Retention 

Even before the pandemic, the cleaning industry struggled with employee turnover. In addition to straining operations, high turnover leads to frequent rehiring and training costs. The need to continuously invest in recruitment and training raises costs, and the constant cycling in of new employees harms productivity.  

This effect can amplify as it places a heavier burden on experienced employees, leading to still higher rates of burnout and turnover. Then, as those experienced employees leave, the business loses efficiency and is forced to rely more heavily on less experienced hires. These forces combine to decrease productivity, drive up costs, and make it harder to maintain high service standards. 

Unless actions are taken, the labor shortage that has harmed the cleaning industry will not only continue to do so, but will spiral out of control. Short-staffed cleaning teams are overworked and burnout more quickly, a confluence of events which is quickly becoming untenable. In addition to the impact on turnover it makes it harder for increasingly exhausted employees to maintain cleaning standards. This could negatively impact customer satisfaction, endangering contract renewals and references. 

The cleaning industry is not the only one impacted by the tight labor market, and often leaders find themselves competing with other industries for the same pool of workers. Hospitality, warehousing, and construction are all similarly strained, leading to an arms race when it comes to competing for top workers.  

In a tight labor market, improved wages and benefits, and efforts to improve working conditions are musts. Otherwise cleaning companies that cannot risk losing staff to competitors will be similarly starved for talent. 

If companies and businesses do not act to address the labor shortage the greatest risk would be its impact on contracts and facility cleanliness. Failure to maintain adequate staffing levels will undoubtedly challenge the ability to fulfill service agreements, be it through work delays or through overworked and understaffed teams failing to meet the cleaning standards.  

For those trapped in this loop, even a small number of lost contracts could cause long-term instability through reputational damage and lost opportunities for business growth, leading to financial instability. Taken collectively, and looking in the rearview mirror at a labor shortage that has long been a concern, serious action must be taken. While the pandemic brought to the forefront, and exacerbated, the labor gap, the problem is not going away. 

Improving Pay and Benefits 

For the long-term viability of the cleaning industry, rethinking hiring and retention strategies must be a top priority. Higher wages are undoubtedly part of the solution, but many more factors must be taken into account when it comes to attracting and keeping employees. Alongside wage increases employers can offer better benefits. Additionally alternative hiring approaches can broaden the pool of workers while also increasing the success rate of that outreach. Furthermore, long-term workforce planning and working with current and potential employees to solicit feedback about how to improve working conditions can help stabilize the cleaning industry’s labor force in the long term. 

First and foremost, employers must address the main causes of worker turnover — low pay, lack of benefits, and limited opportunities for career growth. The simplest step to take is to offer higher compensation — keeping wages and benefits competitive not just with other businesses in the cleaning industry but with the companies in other industries competing for workers in the same labor pool.  

While some companies may be unable to increase base pay, bonuses tied to performance and retention can reduce turnover rates and keep companies in the cleaning industry competitive in the labor market. Additionally, referral programs can incentivize workers to help with recruitment, reducing the burden on existing employees while increasing take-home pay.  

Companies must also work to erode the perception of cleaning jobs as a ‘dead end.’ This can be done through mentorship and partnership programs which help guide workers down a path to internal promotion opportunities in supervisory or managerial roles.  

Additionally, training and certifications can be done which will give workers greater qualifications. These can also be tied to bonuses for further incentive.

Another benefit that companies can offer is to improve scheduling flexibility. Many part-time workers would vastly prefer full-time positions, and the more reliable income and benefits that come along with it. Workers having to juggle multiple part-time roles will be more prone to mistakes and burnout, so offering full-time roles will benefit the workers and business alike. Similarly, working to offer more consistent shifts can help workers build a healthier work-life balance, improving morale and well-being while also improving work quality. 

Alternative Hiring Strategies 

With the overall labor pool shrinking, cleaning executives need to tap into underutilized talent sources to find new employees. Implementing the changes outlined above can do a lot to entice workers who may previously not have been interested in the cleaning industry. But employers must also expand their outreach.

Second-chance hiring programs working with formerly incarcerated individuals or those looking for a fresh start can be a great way to build a loyal workforce while giving people meaningful job opportunities.  

Similarly, outreach to older workers and the semi-retired can be a great way to buttress the workforce, as many in these individuals are seeking part-time or low-impact jobs. Cleaning companies can create roles that accommodate these workers while filling labor gaps. Filling part-time positions with such workers also better enables employers to transition other employees to full-time roles, strengthening retention while broadening the labor pool.  

At the other end of the spectrum, business leaders can partner with high school and vocational schools and training programs, providing access to younger workers entering the labor market. These younger workers can be trained and enticed to remain reliable and consistent workers in the industry. 

Navigating Immigrant Visas

The cleaning industry has historically relied on immigrant labor, but recent policy changes, mass deportations, and visa backlogs have reduced the availability of workers. Employers who proactively leverage work visa programs may gain a stable, long-term workforce while competitors continue to struggle with high turnover.  

Even in the context of stricter immigration laws, many industries will continue to rely on immigrant workers. Business leaders must stay ahead of policy changes to ensure they still have access to foreign labor markets.  

One of the most important tools business leaders must understand is the EB-3 Visa Sponsorship program, as this allows companies to hire foreign workers for permanent, non-seasonal roles. Shorter term solutions exist as well, but the EB-3 visa allows industry leaders to avoid the same problems outlined above that emerge with short-term solutions and high turnover in the workforce.  

While temporary hires will leave after a few months, companies that work to embrace visa sponsorship can fill roles with employees committed to long-term employment. By understanding and implementing these solutions, business leaders can have a reliable pool of workers, reducing turnover and hiring costs.  

However, employers must ensure they stay informed about policy shifts and changes, as deportations and raids could put this vital supply at risk. In the immediate term, that means ensuring legal compliance for all foreign workers, making sure employees and employers alike have all of the paperwork available. At the same time, employers must advocate for a more effective and efficient visa process, as streamlining the process can not only speed up the time it takes for workers to arrive but can also make it more attractive for potential employees who may be daunted by a tedious and lengthy process. 

Why the Industry Needs to Act Now 

The labor shortage, in the cleaning industry and others, is not going away anytime soon. Industry leaders must be proactive in mitigating the impact it has, otherwise the larger workforce crisis impacting it and other service industries will be at serious risk. The facility managers and building service contractors that act first will benefit the most. Those who do not take proactive steps to address the labor shortage will fall further and further behind the companies that do.  

By adapting to the ever-shifting workforce challenges, companies can remain competitive now and into the future. Increased wages and benefits and a focus on work-life balance can improve employee retention. Increasing hiring efforts to tap into overlooked labor pools, while offering opportunities for professional growth that can similarly attract some of those workers, can increase available labor. And when the domestic labor market is insufficient, companies must understand visa and work policies, working with government leaders to streamline the process by which they can obtain those visas and bring in new workers.  

Existing pathways such as the EB3 work visa exist, but as policies shift and change, business leaders must keep ahead of them, pairing short-term solutions with long-term viability. The cleaning industry plays a critical role in public health and safety — staffing shortages should not be an obstacle to meeting these essential needs. By acting now, cleaning businesses can build a workforce that is stable, skilled, and prepared for the future. 

John Dorer is a Global Mobility Executive with a focus on Employer Sponsored Green Card solutions, and the CEO of EB-3 Staffing Solutions for Employers. Headquartered in New York City, eb3.work provides effective solutions in addressing the country’s chronic and growing unskilled and entry-level labor shortage by connecting employers with foreign nationals seeking to work legally in the United States. eb3.work leverages its proprietary business processes and technology to assist qualifying U.S. companies and foreign national workers in navigating the complex U.S. immigration system.