Outsourcing's Fine Print

If headline news is any indication, outsourcing is a trend that is gaining momentum. With budget numbers dipping to all-time lows, facility executives, building owners and school boards alike are intrigued with the potential savings building service contractors (BSC) tout. But some in the industry warn: If it seems too good to be true, it probably is.

Looking beyond the perceived cost savings, facilities considering a shift in cleaning responsibility should be careful to identify all the fine print that outlines a building service contract.

Beyond one of the biggest hurdles — overcoming animosity from workers, unions and even the community — facility executives should ask themselves a couple questions before turning to BSCs: Will outsourcing provide the same level of productivity and quality of clean? Will new janitors have the same sense of ownership in the work they do? Will those newer workers lend a hand in times of need?

One could argue that all these questions have the same answer: Sure, for a fee.

"[BSC] employees will only do the work that is outlined in the contract," says Mark Sholl, sales manager at The Janitors Supply Co. in Fort Wayne, Ind. "When asked to help set up for a play, executives might hear, 'That's not in my contract' or, 'You don't pay me to do that.'"

Service Add-Ons

When decision makers consider outsourcing custodial operations, they often look at the bottom line expense, assuming duties outlined in the proposal meet the needs of the facility. Those items are traditionally based off of the job descriptions of existing custodians and consist only of cleaning-specific responsibilities.

But what executives might not consider are the tasks that custodians do beyond those outlined in their job descriptions. For instance, schools host student performances, community meetings, sporting events, dances, religious gatherings and even the occasional political polling event. Set-up and take-down is required for each of these events and more often than not, the task is tackled by custodians.

"Our school hosts carnivals, science fairs, board meetings and plays, and the custodian knows exactly how and when to set up for the events," says Robert E. Germond III, custodial supervisor at Hopewell Valley School District in Pennington, N.J. "These services would be an additional line item on a BSC contract."

To make for an easy comparison of work, this type of specialty task should be included in in-house employee job descriptions. Doing so will not only communicate the extent of work currently being done by the in-house custodial crew, but it will force executives to factor this into potential BSC bids.

In-house managers are advised to get as specific as possible when outlining the duties of the cleaning crew in job descriptions. For example, window cleaning, floor stripping and waxing, matting services and carpet cleaning might currently be done by the in-house crew, but they are often considered specialty tasks by BSCs and fall outside the realm of general cleaning. BSCs can compete these add-on services, but at an additional expense.

Snow and ice removal is another great example of a specialty task that BSCs will subcontract out, at the expense of the facility. Not only can these add-on services become costly for the facility bottom line, but the quality of work might not compare to what in-house crews can offer.

For instance, Milwaukee has a 24-hour snow removal ordinance. To handle the workload of his 200 schools, Michael Gutierrez, acting manager of buildings and grounds at Milwaukee Public Schools, has workers available night and day.

"Based on the forecast, we might start at midnight and work around the clock to keep areas clean and ready for students," says Gutierrez. "Service providers in our area don't have the manpower necessary to meet these same standards."

In this example, if Milwaukee Public Schools outsourced snow and ice removal, they would be paying an additional fee for a resource that doesn't compare to the current level of service. Although manpower isn't always the cause, frequency of service when using a subcontractor can vary from what facilities are accustomed to with an in-house crew.

In addition to the needs for these specialty tasks, facility executives are advised to pay attention to the frequency of cleaning tasks outlined on BSC proposals. To achieve higher savings, BSCs might recommend reducing frequencies.

Instead of comprehensive cleaning, proposals might suggest spot cleaning, reducing vacuuming frequencies or less frequent dusting or mopping. Initially, reducing frequencies can save money, but traditionally, facilities end up paying in the long run with more frequent carpet replacement or occupant health and absenteeism.

Investment Expectations

Cleaning frequencies and specialty tasks are all part of the continuity of an in-house custodial worker. In most facilities, workers have a long tenure and are familiar with how certain teachers prefer to have their classrooms cleaned, which offices take more time to clean than others and what time of day traffic dies down enough to close off a restroom.

"I have not yet come across a proposal from a BSC that delineates information that specifically," says Gutierrez. "BSCs come in and give their best guess as to what needs to be done, but the in-house staff knows exactly what needs to get done day in and day out in every area of the facility."

According to many in the industry, this familiarity with the job, as well as with the building occupants, is a big plus in support of an in-house crew.

"Teachers want someone who is familiar with them and their students," says Germond. "That way they know that their room is going to be clean and healthy the next day. With a BSC, you get different faces all the time and lose that continuity."

Sholl agrees, saying, "BSC workers do the job and leave. They don't know the facility and aren't familiar with it's specific needs. As a result, performance will suffer, mistakes will be made and specialty tasks won't be completed."

Why the difference in attitudes between an in-house worker and the BSC counterpart? More often than not it comes down to two things: personal investment in the facility and money.

All About Benefits

Many in the industry associate the sub-par service received from a BSC to the frequency of turnover, which is often connected to worker salaries and benefits. Statistically, in-house workers make an average salary that is one-third more than that of their BSC counterpart.

But the true difference lies in vacation and health benefits — most in-house workers have them, but not all BSCs do. In fact, this is the main reason why BSCs can offer such a low bid on services.

There is little in-house departments can do to combat this challenge, but few have tried. To keep jobs in-house, many organizations have cut back on contributions to benefits, asking the employee to pick up the slack.

"When you have good benefits like we do, we negotiate and give back in an effort to keep them," says Germond. "What BSCs in our area offer is not even close to the package we offer our employees."

Many in the industry believe that the lack of compensation — both salary and benefits — attracts the wrong type of worker. Add to that the challenging and often unglamorous task of cleaning a facility and it will result in frequent turnover.

"A BSC that pays workers $12 an hour with no benefits will attract a different kind of person than a facility that offers $16 and hour with seven days vacation and full health benefits," says Sholl.

Keeping these salary and benefit packages in mind, in-house custodians are often torn when a BSC is successful in wining a bid. In most cases, that BSC will offer former in-house employees positions to work the contract.

Although it is somewhat comforting to find work right away after a layoff, those who take the offer must reapply for the position and do so at the lower wage.

"That employee is now expected to do the same work they have always done, but for less money and without any benefits," says one facility manager in the Midwest currently battling to keep custodial operations in-house. "Not to mention, that worker loses all their seniority and starts again from scratch."

The Trust Factor

It is unfortunate, but important to note, that not all BSCs are considered equal. Some are definitely more trustworthy than others, and facility executives are advised to check their gut when comparing the in-house crew to a potential BSC.

In Milwaukee, county and state regulations require Gutierrez to certify and train staff on specific tasks using very specific guidelines. He questions whether a BSC would walk the walk in terms of these requirements.

"You can include certification and training requirements in your specs, but how do you know if a BSC is complying," he says. "There is potential that an untrained individual is put in a situation that they don't know how to handle. This can be a liability for the facility."

Whether the BSC is handling the task themselves, or they hired a subcontractor to take over, facility executives are advised to require certification documentation for workers in these situations.

The same can be said for employee background checks and performance reviews. A trustworthy BSC will keep up on this documentation, which is often available upon request from a facility executive and should be reviewed prior to accepting a bid.

Trust and safety play a large role in custodial operations, as these workers have access to every area of the facility and at all times of the day and night. Background checks and performance reviews can offer a general portrait of a person, but unfortunately, they don't always tell the full story. Some facilities have to learn the hard way.

For example, at a school in Pennsylvania, where 50 percent of services are outsourced, the facility executive was notified of theft in the administration office. As it turned out, funds raised for a class trip were stolen from a desk drawer. Luckily, the theft was caught on tape and a BSC worker was quickly apprehended.

Gutierrez has heard similar stories where the occasional computer was taken during a night shift and the contracted worker was never seen again.

A Final Word

When it comes down to numbers, in-house departments will find it difficult to compete against BSC proposals. But, when given the opportunity to fight for the job, managers should highlight the type of workers that are employed and their investment in the facility, the specialty tasks conducted on a daily basis and without hesitation, in addition to cleaning frequencies.

"In-house employees care about the building occupants," says Sholl. "They offer that human touch, a relationship, an investment and a commitment. Those workers will give 110 percent every day. They will go above and beyond their job description because they want to be there."

Documentation of this effort is essential and should be used to support the in-house cause.

"The more you do, the more you document, the more likely you are to keep your job," says Germond.

Departments threatened by outsourcing should use this documentation to throw their hat in the ring and write up their own proposals. Outline the tasks performed and the services provided on a regular basis. Putting it in black and white for facility executives demonstrates that the in-house department isn't going down without a fight.

Obviously, budgets are tight and facilities have to trim where they can, but that doesn't always mean outsourcing is the only option.

"We have to trim where we can, but lets also look to see where we can get the best bang for our buck," says Gutierrez. "A BSC is not always the answer."