Uber is a pioneer in recruitment and labor management. In a few short years, they’ve been able to recruit 450,000 drivers in the United States alone, most of whom likely never considered driving a taxi for a living. When you take a look at Uber’s highly tactical recruiting strategy, one element stands out — PAY. But not the amount of pay, but rather the frequency of pay.
Uber has solved the recruitment puzzle most companies miss the mark on. In just the last 18 months, Uber has made five major announcements that moved their pay cycle from once a week on Thursday to every day. Uber’s datacentric approach informs us of their experience. Daily payment helps lead to higher employee engagement, which meaningfully reduces turnover and absenteeism in their driver base, allowing them to power their exponential growth.
Daily payments meaningfully reduces turnover and absenteeism in their driver base
The cleaning industry has a remarkable amount of similarity to Uber. Both are highly dependent on labor. Both live and die by the availability, consistency, and performance of their people. But thankfully, unlike Uber, cleaning companies don’t have to build an internal system like Uber did. In the past year, new third party technology has emerged that enables employees to access their income ahead of pay day, for pennies on the dollar. Importantly, the technology comes at zero cost to the business operator. The tech companies even fund all of the payroll themselves, so the cost of making employee earnings available early doesn’t have to come out of the employer’s pocket.
Whether the business employs 2 or 20,000 cleaners, companies in the cleaning industry can learn a thing or two from one of this century’s most innovative pioneers in labor.