SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY
OCTOBER 2017
� CARING FOR PLANT WALLS � ARE ‘NO VOCs’ CLAIMS BOGUS? � MINIMUM WAGE HIKE FALLOUT
MAN IN MOTION PM#40063056
Kleenway Services’ Bill Germanis propels company forward with new national cleaning contract, CIMS certification
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� CONTENTS OCTOBER 2017
PHOTOS BY ROBYN RUSSELL
SUSTAINABILITY 10 It’s Easy Being Green Living walls low maintenance but require continued care to survive, thrive by Alan Darlington 12 Care for the Air ‘No VOCs’ product claim not always what it seems by Mike Sawchuk
BUSINESS MANAGEMENT 14 Expanding Horizons Three questions help determine franchisability of a business by Mark Siebert 20 The Labour Alternative Key considerations before outsourcing cleaning services by Ron Segura
COVER STORY 6 A Matter of Heart Kleenway Services committed to giving back to its clients, employees, the environment and community by Clare Tattersall
IN EVERY ISSUE 4 Editor’s Letter Times are Changing 18 Expert Q+A Minimum wage increase a downer? 22 Clean Matters Best in Show
Increasing the minimum wage to $15 an hour by 2019 could cost 50,000 Ontarians their jobs, says the province’s Financial Accountability Office.
www.REMInetwork.com / 3
/ editor’s letter /
TIMES ARE CHANGING
T
he end of summer and beginning of fall is typically marked by shorter days and cooler temperatures. This year, while nighttime arrived sooner, parts of Canada experienced a record-breaking heat wave. Also unusual was the timing of the 2017 ISSA/INTERCLEAN North America trade show and convention, which was held Sept. 11-14 in Las Vegas, more than a month earlier than previous years. But the change in date had no bearing on its outcome, as the largest exhibition of cleaning and hygiene on the continent garnered more than 16,000 registered visitors from 76 countries, according to ISSA. The worldwide cleaning association also reported that the show saw an increase in the number of attendee companies, including 15 per cent more distributor companies, an 11 per cent increase in building service contractor companies and a 22 per cent boost in in-house service provider organizations. As usual, though, the ISSA Innovation Award Program was a big draw, with a pool of 44 entries from nearly 40 companies. You can read all about this year’s overall winner, as well as the category winners and visitors’ choice award recipients in our regular Clean Matters feature. To begin, however, we look at Kleenway Services. Based in Toronto, the company was originally founded by president Bill Germanis’s father, John, more than 35 years ago. Since then, it has grown tremendously in size, geographical market share and scope of service offerings to become a prominent player in the janitorial industry. To read all about our cover story’s rise, turn to pg. 6. We then turn our attention to this issue’s industry focuses: sustainability and business management. Topics covered include green wall maintenance, ‘no VOCs’ product claims, business franchisability, forthcoming minimum wage hikes and outsourcing labour. The next issue of Facility Cleaning & Maintenance will be our last for the year. We are already busy working on the editorial lineup for 2018, so if you have a product that is innovative, would like to see a topic covered in a future issue or are interested in participating in our Expert Q+A, I’d love to hear from you. CLARE TATTERSALL claret@mediaedge.ca
Editor Clare Tattersall claret@mediaedge.ca Digital Editor Rebecca Melnyk rebeccam@mediaedge.ca
Publisher Liam Kearney liamk@mediaedge.ca
Senior Designer
Production Coordinator
Annette Carlucci Elizabeth Nguyen elizabethn@mediaedge.ca
Sales Sean Foley seanf@mediaedge.ca Stephanie Philbin stephaniep@mediaedge.ca
Contributing Writers
Alan Darlington Mike Sawchuk Ron Segura Mark Siebert
Circulation Yeshdev Singh circulation@mediaedge.ca Facility Cleaning & Maintenance is published six times a year by:
5255 Yonge St., Suite 1000 Toronto, Ontario M2N 6P4
President
Kevin Brown kevinb@mediaedge.ca
Senior Vice-President
Robert Thompson robertt@mediaedge.ca
Director, Sales & Strategy
Eric Harbottle
erich@mediaedge.ca Copyright 2017 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation ext. 234 Subscription Rates: Canada: 1 year, $50*, 2 years, $80*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes Requests for permission to reprint any portion of this magazine should be sent to the Editor, Clare Tattersall FORMERLY KNOWN AS
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/ cover story /
A MATTER OF HEART Kleenway Services committed to giving back to its clients, employees, the environment and community by Clare Tattersall
J
une is often a time people start thinking about taking vacation days to enjoy the sunshine and warm weather that generally only lasts a few months of the year in the True North. But while many were mulling over how they’re going to savour (or beat) the heat this summer, Kleenway Services’ Bill Germanis was busy preparing to take on a new national cleaning contract for one of the world’s largest retailers while tending to the company’s existing clients that span multiple sectors and the country. Yet, even with so much on his proverbial plate, Kleenway’s president still made room in his schedule to take part in this year’s Autism Speaks Canada Walk in Toronto, which raised more than $338,000 for autism research, services and awareness initiatives. “It’s important to take the time to give back to our local communities and support good cause organizations,” says Bill. “Kleenway prides itself on its culture of corporate social responsibility and the foundation of that culture is how we care for one another.” In addition to Autism Speaks Canada, the company is a proud supporter of the SickKids Foundation; Crohn’s and Colitis Canada, participating in its annual Gutsy Walk; the Guelph Junior Storm, a Triple-A hockey team it sponsors; and the Heart and Stroke Foundation, which is near and dear to Bill.
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Kleenway gives monthly to the esteemed foundation in memory of his late father, John. While it’s been almost 15 years now since the company’s founder suffered a fatal heart attack at the age of 49, Bill remembers it like it happened yesterday. “It came out of nowhere,” he says with disbelief in his voice. “He didn’t smoke, didn’t drink. Completely sudden.” John’s untimely death in October 2003 left a void in the company that Bill, then 23 years old, had to fill. Though he had worked at Kleenway for seven years, three of which were in a managerial role, the responsibilities of running a business at such a young age were daunting. “The first year was a bit shaky,” he recalls. “I didn’t understand what it meant to be a 100 per cent owner-operator. I still thought I could work three or four days a week so that I could go out with my friends, have fun and enjoy my young adulthood.” With no other family members involved in the business to lean on, Bill turned to then account manager George Kakarelis for support. Twelve years his senior, Kakarelis, who was hired by John just one year prior to his passing, helped guide Bill through a difficult personal and professional transition. The two formed a formidable bond, one that remains to this day as Bill considers Kakarelis, now director of
/ cover story /
operations and process improvement, to be his right-hand man. On his left is director of business development Louis Nickolaou, another company veteran that Bill brought on board in 2004. At the time, Nickolaou was looking to earn some money while in school, which struck a chord with Bill. “An old friend of my father paid me a visit to see how I was doing since I was now living on my own, trying to run the company,” explains Bill. “He mentioned his son, Louis, was looking for work to cover his bills and it reminded me of myself, when I was in need of a job for the same reason, so I told him to send him in.” Bill promptly put Nickolaou to work making telephone sales pitches and within six months his good deed paid off. Nickolaou’s foresightedness to contact companies outside Kleenway’s geographic market area helped turn four cold calls to Stratford, Ont., into hot sales. “It showed me the potential of pursuing business outside the Greater Toronto Area (GTA), which was saturated with cleaning companies,” says Bill. “From there, we looked further afield and began to pick up accounts in London, Windsor, Niagara Falls and Kingston.” By 2007, Kleenway had established a foothold in Ontario, thanks in part to longtime client Canadian National Railway (CNR). Now with the facility services provider for 20 years, CNR awarded Kleenway a major contract for 85 facilities, many of which were located in the most remote areas of the province. National expansion occurred shortly thereafter when Kleenway secured contracts with 35 big box retailers, a move many would consider smart yet risky. The benefits of looking beyond Ontario’s borders are obvious — broader customer base, increased revenue and new, qualified personnel — but the advantages are there only if growth is managed properly. “I felt comfortable expanding into different parts of Canada because of the experience of breaking out of the GTA,” explains Bill. “We knew how to successfully set up the infrastructure and properly staff the facilities to meet our clients’ needs.” Today, Kleenway has in excess of 450 employees that clean more than 10 million square feet across the country daily.
The company’s offerings have also diversified with time. Though janitorial services, window cleaning, carpet and floor care are still at its core, Kleenway also provides landscaping services, including grounds maintenance, snow removal, power washing and sweeping, and line painting, as well as ad hoc services — non-structural mould remediation, lead abatement, decontamination of beryllium, waste audits/ cross-contamination review, dry ice blasting and high-temperature painting — that are tailored to the specific needs of its diverse clientele. Bill says the goal is for Kleenway to become a full-service building maintenance company. “This will make our services more costeffective for our clients while strengthening are customer retention rate in a very competitive industry,” he explains. While the company has seen great success over the past decade, the road was paved by Bill’s father; without him, there would be no Kleenway. John immigrated to Canada from Greece in the late ‘70s in pursuit of greater opportunities. It was while studying at York University that he was first introduced to the janitorial services industry by Denis Seliotis, who worked in the sector and would later become Bill’s godfather. John initially picked up a cleaning job to help put himself through school but by the time he graduated with a masters of business administration from the University of Windsor, he had decided to make a go of it as a career, opening Kleenway in Toronto in 1981. From the beginning, John prided himself on providing total customer satisfaction, regardless of client size and scope of work. Key to this was being proactive, not reactive; listening carefully to customers’ needs; delivering reliable, quality services; making prompt responsiveness a priority; and maintaining a personal touch. These tenets are still very much a part of the company’s philosophy. But despite John’s unwavering commitment to his clients, sales became stagnant over time. As Bill puts it, “My father didn’t need any more than what he had so he was content to keep things manageable. Pursuing new business was not a priority as overextending yourself, he said, was a mistake many business owners made.”
8 / FACILITY CLEANING & MAINTENANCE / OCTOBER 2017
However, Bill thought differently. “We’re from different generations and, as such, had divergent views on business,” he says. “In my opinion, you need to move with the times, otherwise you run the risk of becoming obsolete.” As a Xennial, born between 1977 and 1983, Bill was ambitious and eager to take a more progressive approach that favoured innovation and development to propel Kleenway forward — traits that have served him and the company well. To begin, he spent $4,000 on a new company logo, website and stationary while his father was overseas — John had established a second cleaning company in Greece in the late ‘90s, which required travel back and forth between his adopted and home countries. “When he came home and saw (what I’d done), he couldn’t believe what I had spent. He kept insisting these were not things that would make Kleenway better or get us new business, and the money could be better spent,” he laughs. Once Bill took over Kleenway’s reins and the company began to experience great growth, he invested in CleanTelligent software. The innovative mobile technology allows Bill and his senior management team to operate and manage workplaces efficiently, as well as communicate more effectively with clients. Through CleanTelligent, Kleenway can track performance and project progress, upload detailed inspections, schedule work orders, and much more — all of which clients can access at any time via a personal online account. “The janitorial software combined with the use of key performance indicators, or KPIs, which we tailored into the system a few years ago so that we could continually assess the effectiveness of our processes, gives our customers a whole picture of their contract’s management, not just the quality of cleaning,” he says. Around the time CleanTelligent was implemented, Kleenway voluntarily pursued ISO 9001 accreditation, a process that took eight months and resulted in certification in June 2013. Developed by the International Organization for Standardization, ISO 9001 is based on several quality management principles that include strong customer focus, the motivation and implication of
�
KLEENWAY SERVICES’ PRESIDENT, BILL GERMANIS, WITH DIRECTOR OF OPERATIONS AND PROCESS IMPROVEMENT, GEORGE KAKARELIS (LEFT), AND DIRECTOR OF BUSINESS DEVELOPMENT, LOUIS NICKOLAOU (RIGHT).
top management, using a process-based approach and continual improvement. Companies that are certified to the standard must provide products and/or services that meet customer and regulatory requirements. “ISO 9001 accreditation (was) a major stone placed on the path toward Kleenway’s continued success,” says Bill. “Our focus has always been total customer satisfaction and complying with (the) standard ensures our customers get consistent, high-quality service and that we continue to inspire our employees and management to grow and support our goals.” Recently, the company obtained CIMS certification. While similar to ISO 9001, it is the only standard specific to the cleaning industry in Canada and the U.S. Conformance demonstrates a company is structured to provide consistent, highlevel janitorial and maintenance services.
Kleenway underwent a comprehensive assessment conducted by an accredited, third party testing agent in August, resulting in the designation being awarded. At the same time, the company achieved CIMS-GB certification. The ‘green building’ component of the certification establishes the contractor is capable of providing an environmentally preferable cleaning service and assisting clients in earning LEED EB:O&M (Leadership in Energy and Environmental Design for Existing Buildings: Operations & Maintenance) points. Bill’s forward-thinking approach to business extends to the treatment of his employees. To retain the talent of middle and senior management, reduce turnover of frontline workers and attract suitable new hires, he invests in continuous employee training and development,
offers competitive wages and makes a point of regularly rewarding staff that go above and beyond what is required. Every month, the company awards a $50 American Express gift cheque to an employee who demonstrates a single exceptional example of service. Once a year, Kleenway honours a nominated employee with the highest number of recognition “note of thanks” cards during the last four quarters. The annual award, named after Bill’s father, comes with a gift certificate in the amount of $250, a token of Bill’s appreciation. “Regardless of the technology you use, the certifications you pursue or the risks you are prepared to take, the success of your company will always rely on the people you employ,” says Bill. “Investing in our employees has made Kleenway what it is today and what it plans to be tomorrow.” / www.REMInetwork.com / 9
IT’S EASY BEING GREEN
Living walls low maintenance but require continued care to survive, thrive by Alan Darlington
10 / FACILITY CLEANING & MAINTENANCE / OCTOBER 2017
/ sustainability /
O
nce experimental, living walls have become popular elements in the built environment thanks to their many benefits. These truly green additions are not only aesthetically-pleasing but they purify the air, dampen noise, reduce the ambient temperature, and improve occupant health, well-being and productivity. And they do this all while taking up minimal floor space. Living walls can vary from potted plants arranged vertically on a wall to sophisticated computer-controlled hydroponic indoor air purification systems that are integrated right into a building’s air handling system. These indoor air biofilters actively improve indoor air quality. Recent studies conducted by the University of Guelph have demonstrated that indoor living wall biofilters reduce common indoor air pollutants by 30 per cent. Like all building components, living walls must be maintained. Each system has its own distinct needs; however, generalities on their maintenance do exist. Caring for a living wall is easy so long as the persons charged with the task know what they’re doing. Most of the maintenance is obvious and revolves around good hygiene. Healthy plants will drop their leaves from time to time. While a normal occurrence, these leaves become unsightly if left on the floor so routine general cleaning of areas adjacent to a living wall is a must. Beyond this, periodic pruning, removal of dead plant material and plant replacement is required. Maintenance staff with some horticultural knowledge is an asset. There are several national and regional programs that offer accreditation in the area of plant maintenance. However, if in doubt, hire a trained maintenance technician familiar with horticultural issues, specifically living wall systems. LET THERE BE LIGHT
To many people’s surprise, much of the success of a living wall is actually depen-
dent on what happens between the technician’s visits. For example, proper lighting will impact the success of a living wall. The principles that apply to any interior plant also apply to a living wall. Skylights and windows provide an excellent source of both direct and indirect light. However, an obstruction can negate the effect of a wellplaced window and drawn shades make the windows totally redundant as does dirty windows, which are akin to curtains. Although ideal, natural light is not essential for healthy plant growth. Living walls also thrive under artificial light. While some plants can tolerate as little as 75 footcandles, most living walls need at least 125 foot-candles for 18 hours per day to succeed. This works out to approximately 100 watts of light (not incandescent) per square metre. When selecting a lamp, consider the amount of light generated per watt of input energy. Even though fluorescent and halide lamps are still being used, LEDs are energy-efficient, have a more consistent output and longer life. Fluorescent and halide lamps should be replaced every two years because of reduced output, whereas LEDs can last up to 10 years. Regardless of lamp type, dirt buildup can decrease light output by up to 30 per cent, so it’s important that maintenance staff clean the fixture lenses (when cool) bimonthly or quarterly. It’s also essential that staff regularly check lights to ensure they are operating properly. A living wall’s life depends on it. JUST ADD WATER
Apart from light, there is little else to be greatly concerned about in the maintenance of a living wall. Most thrive at room temperature (between 15 C and 25 C). Once established, nearly all plants can tolerate
temperatures from 4 C to 34 C. However, adequate water moisture is required for plants to survive in warmer temperatures. Typically, living walls are designed with an automatic irrigation system. Still, care must be taken to ensure all plants are receiving adequate water, daily. Maintenance staff should regularly conduct a visual inspection or, better yet, feel the root media to ensure plants are getting enough moisture to support growth. BUG OFF
Like any collection of plants, living walls are susceptible to insect attack. While it’s often the responsibility of the horticulturalist to keep pests in check, maintenance staff should keep an eye open for unwanted guests. Vigilance is key to keeping nuisance insects away. One of the best ways to control pests is to routinely ‘wash’ plants with a diluted soap solution (40 parts water to one part liquid soap). Adding a small amount of rubbing alcohol and/or lemon juice to the solution will further protect plants. This environmentally friendly treatment should be thoroughly sprayed on both the upper and lower surfaces of the plant leaves for it to be most effective. Some plants may need a water rinse afterwards. Biocontrol, or the introduction of certain insects to kill unwanted insects, is also an effective pest control measure. However, some insects, such as ladybird beetles (more commonly known as ladybugs), have little interest in remaining where they are needed and may become more of a nuisance than the original pest in the space. Also, special training and licensing may be required to apply even ‘organic’ materials. Maintenance staff should check local guidelines before applications. /
Alan Darlington has a PhD in horticulture, with a speciality in indoor plant-based biofilters. With this expertise, he formed Air Quality Solutions Ltd. in 2001, now Nedlaw Living Walls based in Ontario. www.REMInetwork.com / 11
/ sustainability /
CARE FOR THE AIR
‘No VOCs’ product claim not always what it seems by Mike Sawchuk
O
ver the past three decades, asthma rates have surged in Canada. Characterized by variable and returning symptoms, such as shortness of breath, chest tightness, coughing and wheezing, the disease has become one of the most prevalent chronic conditions in the country, affecting more than 3 million Canadians, according to the Asthma Society of Canada. Statistics like this has led many cleaning chemical manufacturers to introduce green products that tout low or no volatile organic compounds. Commonly known as VOCs, these chemicals have been linked to poor indoor air quality (IAQ) and the onset and exacerbation of asthma. The replacement of traditional products with eco-friendly ones has pleased many in the cleaning industry; however, upon closer inspection, chemical cuts have primarily been made to ozone-depleting VOCs. This benefits stratospheric ozone, which is six to 30 miles above the Earth’s surface and helps reduce the amount of harmful ultraviolet radiation that reaches the planet. Ambient ozone — the ozone people breathe — has been little impacted, so building occupants may still be inhaling VOCs and other chemical emissions that can trigger asthma. Some claim this is greenwashing, which is the dissemination of disinformation by an
organization to present an environmentally responsible public image. By definition, this appears to be the case. However, there is no evidence to support such a claim since cleaning chemical manufacturers are simply abiding by the instructions, standards and criteria set out and enforced by most green certification organizations. In other words, companies are following rules and guidelines that are not entirely correct. Many of the standards and criteria used to certify green cleaning products were developed as far back as the late ‘80s. At that time, it may not have been understood that ozone-depleting VOCs could be eliminated and that harmful VOCs and chemical emissions could still be found in indoor air. DOUBLE DUTY
Green certification organizations have played a role, albeit an indirect one, in the IAQ-VOC issue. As the number of certification organizations increased around the turn of the 21st century, the market for their services became overcrowded. In response, they became more specialized. For instance, Green Seal and EcoLogo, which is part of UL Environment, began to focus more on the cradle-to-grave sustainability
of a product, whereas Safer Choice put more emphasis on identifying products with safer chemical ingredients. None at the time considered pursuing standards that addressed the interaction between IAQ and chemical emissions. As a result, most of the certification organizations shared the same criteria for VOCs, and newer guidelines weren’t created. Times have since changed and now Greenguard, also part of UL Environment, has begun to focus on emissions, such as VOCs, that can become airborne and impact IAQ. But does this mean facility managers and cleaning professionals should only select Greenguard certified products if protecting IAQ is a critical concern? The answer, quite simply, is no. Rather, dual certification is ideal. This means the cleaning product has been approved by two certification organizations, not just one. If the green product carries both the EcoLogo and Greenguard logos, for instance, end-users can be assured that the harmful ingredients found in traditional cleaning products have been reduced or removed, and VOCs and chemical emissions are at levels proven safer, protecting the air people breathe. /
Mike Sawchuk is chief business development officer for Avmor, a leading manufacturer and marketer of professional cleaning products in North America.
12 / FACILITY CLEANING & MAINTENANCE / OCTOBER 2017
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/ business management /
EXPANDING HORIZONS
Three questions help determine franchisability of a business by Mark Siebert
W
hen it comes to aggressive expansion goals, there’s perhaps no greater tool for business service contractors than franchising. The marketplace is ripe with research that suggests the economy over the next five years will continue to lift demand for cleaning and maintenance services. But the pace of growth most companies will achieve will be dictated by the strategies they
employ and their ability to implement sound business tactics in the process. When deciding whether to franchise, business owners must understand they’re establishing a new enterprise — it’s not simply an extension of the existing one — and they’ll need to create a win-win-win scenario for the consumer, franchisor and franchisee alike. So, it’s important to take a hard look at the ability to sell the new business, replicate the original venture and
14 / FACILITY CLEANING & MAINTENANCE / OCTOBER 2017
the overall return on investment before moving forward. This is paramount to potential success. QUESTION 1: IS IT SELLABLE?
The essential element of franchisee sales is generating enough interest from prospects to get them into the sales funnel. Of course, a robust digital marketing campaign pays dividends in generating those leads but, more
s!
PARTNERS FOR A GREATER VOICE Cleaning associations join forces to better the industry ISSA Canada has formed a strategic alliance with the Canadian Commercial Cleaning Association (CCCA). “This alliance is an extremely important step in terms of understanding the needs and desires of facility service providers in Canada,” says ISSA Canada executive director, Mike Nosko. “By reaching out to all sectors of the Canadian cleaning industry, ISSA Canada and the CCCA hope to help unify the country’s cleaning community and increase the appreciation for cleaning as an investment in human health, the environment and an improved bottom line.” Through ISSA, the worldwide cleaning association, facility service providers have access to top-notch educational platforms and industry-leading certifications that are recognized worldwide. These include the Cleaning Management Institute (CMI) and Cleaning Industry Management Standard (CIMS). Created specifically for facility service provider organizations, the CMI is geared to frontline professionals, supervisors and managers. With three certifications available under this platform, CMI certification equips facility service providers with the knowledge to understand health and safety, work loading, chemical differentiation, sustainable practices, and more.
CIMS is the first consensus-based management standard that outlines the primary characteristics of a successful, quality cleaning organization. Certification through the CIMS program indicates that a facility service provider firm conforms to the standard requirements, and has successfully demonstrated that compliance to an independent, third party assessor. Also available are ISSA’s Value of Clean and Value of Clean Safety tools, which provide technical data, calculators and presentations designed to educate facility service providers on how to improve current practices, focus on health and sustainability to protect employee and customer health, and ultimately receive a return on investment. “I (spoke) directly to the majority of owners and senior executives of the major contract cleaning firms in Canada, and received strong support to move forward with this initiative,” says CCCA chairman and founder, Randy Burke. “We look forward to being a part of unifying this country’s professional cleaning community.” ISSA Canada is a newly-formed association resulting from the merger of ISSA and the Canadian Sanitation Supply Association (CSSA). Its purpose is to provide a high degree of professionalism, technical knowledge and business ethics within the membership.
For more information, please contact the ISSA Canada office at 905-665-8001 or 1-866-684-8273, or visit www.issa-canada.com.
CANADA NIGHT 2017 AN OUTSTANDING SUCCESS! The premier edition of Canada Night under the auspices of ISSA Canada was an outstanding success. Hosted in conjunction with the ISSA/INTERCLEAN® North America trade event in Las Vegas, NV, Canada Night 2017 — the largest networking and social event of the year — was held Tuesday, September 12, in Ballroom A of the Westgate Las Vegas Resort and Casino. Nearly 900 industry representatives and their guests enjoyed an evening of fine food and fellowship, as well as the opportunity to mingle with industry peers and clients. By all accounts, a great night was had by all. ISSA Canada would like to extend its gratitude to the sponsors who make this event such a huge success. “I can’t say enough about our sponsors who continue to support Canada Night,” said ISSA Canada Executive Director Mike Nosko. “This event would not succeed without their generosity.”
ISSA Canada looks forward to seeing everyone in Dallas, TX, in 2018.
Thank you to the following Canada Night sponsors: PLATINUM SPONSORS
BUFFET TABLE SPONSORS
Sealed Air – Diversey Care Bunzl Distribution R3 Redistribution Canada Kimberly-Clark Professional Groupe Dissan
Armstrong Manufacturing Inc. Atlas Graham Furgale Balpex Canada Inc. Charlotte Products Ltd. Deb Canada Dustbane Products Ltd. Hydro Systems Co.
GOLD SPONSORS
Karcher Products Canada
Nilfisk-Advance 3M Canada
Knight (Canada) Ltd.
SPECIALTY STATION SPONSORS Avmor Ltd. Advantage Maintenance Products Ltd. Continental Commercial Products Flexaust Tuec Cascades Swish Maintenance Ltd. Master Distribution Services
Kruger Products Larose & Fils Ltée. NaceCare Solutions Procter & Gamble ProTeam RD Industries Spartan Chemical Company Sprayway, Inc. Staples Tennant Company The Andersen Company Canada
Pioneer Eclipse Sprakita Products M2 Professional Cleaning Products Ltd.
For more information, contact ISSA Canada at (905) 665-8001, toll free 1-866-684-8273 or visit http://www.issa-canada.com. ISSA_1_2_Fall_2017.indd 1
er the auspices of ISSA
www.REMInetwork.com / 15 2017-10-25 11:52 AM
> SOCIAL MEDIA COLUMN Sponsored by MediaEdge
Why brands need to stop the slang By Steven Chester Fam, this this column is going to be so on fleek. Did the line above make you roll your eyes, if you understood even a word? According to recent research from Sprout Social, you’re more than likely one of the 69 per cent of respondents to their survey who found brands who use slang annoying, versus the 31 per cent who found it cool. Authenticity and personality As in all company-run social channels, authenticity and brand personality is a great thing, and so is being current and inclusive. Turning your logo to a rainbow theme during Pride Week or showcasing staff poses in Santa Claus hats at Christmas is fun and creates goodwill – but don’t use those holidays to sell more, unless you’re in the greeting card business. The survey also found that consumers believe there’s value in brands who are honest (86 per cent), helpful (78 per cent) and friendly (83 per cent). Here’s where the grey areas start to creep in: funny and trendy rank at 72 per cent and 43 per cent respectively, and snarky at 33 per cent. Keep in mind that in the B2B world, we’re a bit more conservative, as marketers are often reaching out to an audience who is at their workplace, and the demographic is likely older than the typical demographic on the social network they’re using. #SquadGoals While the colloquialisms of the day change frequently, the secret sauce to a great social media presence does not. If you’re consistently producing compelling, informative, or entertaining content that your audience wants to engage with, your brand is most of the way there.
Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca.
simply, prospects will buy into a brand when they believe they can succeed. Often that demonstration of success comes via a profitable prototype. For potential franchisees, a successful corporateowned location demonstrates credibility and helps prospects envision the benefits of affiliating with the franchised brand. At the same time, it offers the franchisor a venue in which to train franchisees and test operational refinements if and when the franchise program is underway. Selling franchises comes down to creating an attractive opportunity. From a buyer’s perspective, there are a number of facility cleaning and maintenance opportunities to choose from so understanding why a prospect makes a decision is important. While there are certainly prospects who will want to associate with a more established brand, being the ‘new kid on the block’ offers some advantages over larger competitors. For instance, a franchisee in a smaller chain can have a larger voice with the franchisor and may receive more direct support from senior management. Ultimately, though, the franchisee will need to differentiate its concept from those that are already in the marketplace in order to be able to compete with bigger brands. This can be done based on the support provided, marketing, pricing, franchise structure, or a variety of other means. Regardless of how it’s done, the franchisor will need to promote its points of difference aggressively. All too often, companies try to be the best at all things for all audiences. Unfortunately, these brands quickly learn that the desire to succeed at all things leads to being mediocre at everything, which translates into a long-term disaster. For potential franchise brands, really understanding and staking a position in the marketplace helps command higher ground over potential competitors. One thing is for certain when it comes to differentiation: Upfront work to stake a position in the marketplace ensures the messages about the franchise brand are coming from within, not from competitors.
QUESTION 2: IS IT REPLICABLE?
Not every successful concept can be duplicated. Some businesses are simply too complex, niche or regional, and multiplying nationwide via a franchise program is unrealistic. But for most companies in the cleaning and maintenance industry, the complexity of the business should not pose a significant barrier. When going head-to-head with entrenched competitors in a mature industry such as this, refining the franchise concept before entering the franchise marketplace is paramount. Systemization and creating brand consistency through documentation is imperative. A potential franchisor may have great processes in their head but they must be documented in the form of a user-friendly operations manual to guide their franchisees. Operations procedures and management techniques should be tight. Marketing materials should be first-rate. Larger and more sophisticated franchisors will also create formal training programs, videos and seminars to educate franchisee prospects. QUESTION 3: CAN IT TURN A PROFIT?
Above all else, the prototypical business must be able to demonstrate profitability. At a minimum, profitability for a franchisee must allow for enough profit after the royalty — or any other fees for that matter — so that the business owners can earn an acceptable return on their investment. And if the franchisee is also an owner-operator, it should be able to take a ‘market rate’ salary for an employee in a similar position. When determining if the concept offers adequate returns, look at the unit or units that are the most representative of the franchisee’s anticipated performance, staying away from best and worst-case scenarios, to generate a fairly accurate baseline of performance. After making any necessary adjustments to the profit and loss statement, including deducting a royalty for the franchisor, an individual franchisee should be able to make a 15 per cent cash-on-cash return on investment (plus a salary), while area developers will require greater returns. /
Mark Siebert is CEO of leading franchise consulting firm, iFranchise Group, and author of Franchise Your Business: The Guide to Employing the Greatest Growth Strategy Ever. He can be reached at 708-957-2300 or info@ifranchisegroup.com.
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MINIMUM WAGE INCREASE A DOWNER? Q+A: Cleaning contractors, facility managers face tough choices as workers’ pay grows
M
inimum wage is on the rise in several provinces across the country. Alberta will be the first to see a $15 an hour pay, beginning in October of next year. Ontario and British Columbia have committed to the same increase, with the phase-ins to be completed by 2019 and 2021, respectively. In Ontario, this equates to an increase of 24 per cent in under two years. Quebec, New Brunswick and Prince Edward Island are also raising their minimum wage, though the percentage increases are considerably less. Across Canada, the changes to minimum wage have been met with mixed reviews. Those who directly benefit from the pay boost — primarily entry-level workers — are thrilled. However, many companies, particularly those in Alberta and Ontario, are concerned about the pace of the increase and the effect it will have on business operations. Here, Canadian Commercial Cleaning Association (CCCA) president Shane Ferris shares his thoughts on the higher minimum wage — particularly in Ontario, which will see the largest increase in the province’s history — and its relevance to the cleaning industry. What was your initial reaction when you heard about the minimum wage increase?
The cleaning industry would’ve liked to have had more stakeholder involvement in the Ontario government’s decision-making process. The cleaning industry is a servicebased sector that is dependent upon labour, and it wasn’t consulted regarding the
impact of the wage increase. Many longterm cleaning employees have worked for the same company for 10 or more years, and are making somewhere around $16 an hour. These senior-level employees have skills, training, knowledge and experience, and will expect and deserve a raise. However, employers probably won’t be able to afford increasing the wages of their longterm staff while, at the same time, meeting the minimum wage requirements for newly hired staff. Many current cleaning service contracts in Ontario are for multiple years, and did not factor in a 24 per cent labour cost increase. That being said, while initial consultation with the provincial government didn’t happen, the cleaning industry is an invested affiliate in this change process. How will the hike impact the cleaning industry?
Cleaning contractors will have to determine how to mitigate the 24 per cent increase to the cost of labour in under two years. With few available options, contractors will invest in automation and technology to reduce the use of labour; or frontline cleaning staff will be expected to increase their hourly productivity by 24 per cent, while the number of hours they work each week is reduced by 24 per cent. In effect, frontline staff will be expected to clean the same number of square feet they used to clean in an eight-hour shift, in six hours. Neither of these options is optimal for the cleaner or the industry. Contractors will also seek to renegotiate existing multi-year service contracts
18 / FACILITY CLEANING & MAINTENANCE / OCTOBER 2017
with their clients. Facility managers will have to determine if they are willing to pay more for the same level of service or reduce their level of cleaning services by 24 per cent, which is the more probable option. In addition to reducing cleaning services at the client level, contractors will likely reduce investment in staff training and health and safety. Moreover, some business owners may elect to use illegal cleaning workers to keep their operating costs low, eroding the health and safety of building occupants in the process. What is the CCCA doing to effect change?
Currently, with no industry-wide standard available to measure and demonstrate value in the Canadian cleaning industry, the CCCA is concerned the lives and incomes of frontline cleaners could be negatively impacted by hurried changes to the Ontario minimum wage. Accordingly, the CCCA is actively pursuing opportunities to collaborate with the Ontario government to improve the overall cleaning industry in the province. As a distinctly Canadian entity, the CCCA is also in a position to address the concerns of cleaning contractors with all levels of government. The CCCA is working diligently with other stakeholders, such as the International Sanitary Supply Association (ISSA), and branches of the federal government to introduce basic cleaning industry standards and industry-specific training programs into the Canadian marketplace for the betterment of its cleaning staff and the cleaning industry as a whole. /
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THE LABOUR ALTERNATIVE
Key considerations before outsourcing cleaning services by Ron Segura
A
t one time or another most facility managers, particularly those of larger buildings and institutions, wonder whether they should outsource janitorial work. Often they’ll speak to industry peers to obtain first-hand feedback but this can leave them scratching their heads. Some facility managers have found it to be a resounding success, resulting in both time and cost savings. Others have had such awful experiences that they’ve written into their request for proposals (or tenders) that they won’t work with a contractor that outsources cleaning work. And then there are those who’ve experienced the good and bad. Despite such mixed reviews, outsourcing continues to grow. According to global sourcing advisory firm TPI, now Information Services Group (ISG), approximately $100 billion worth of new outsourcing contracts are signed worldwide each year. But how does a facility manager decide if outsourcing’s a good (and the signed worldwide) business strategy? ENJOY THE PERKS
Before looking at the pros and cons, all of which must be considered before reach-
ing a decision, a definition is in order. In the professional cleaning industry, outsourcing refers to the practice of one company hiring another company (or independent contractor) to handle cleaning and maintenance operations in a facility. In some instances, the services initially outsourced may be further contracted out to other companies. Take the case of a leading national bookstore chain in the U.S., which hired an independent contractor to clean all of its stores, totalling several hundred. The master contractor divided the stores to be cleaned into five regions and then contracted the janitorial duties to five other cleaning companies. These five subcontracted companies then outsourced the cleaning work to approximately 10 different cleaning companies per region, bringing the total number of companies responsible for cleaning the national chain of stores to roughly 50. The benefits of having one master contractor handle the cleaning needs of all the bookstore’s locations were multifold. To begin, the bookstore only had to deal with one invoice, instead of 50 or more. Processing invoices quickly becomes cumbersome and very expensive.
20 / FACILITY CLEANING & MAINTENANCE / OCTOBER 2017
Additional cost savings were achieved by levelling the ‘charging field.’ When each store hired its own cleaning contractor, the costs varied, sometimes significantly, from location to location, even between same-sized stores. Outsourcing cleaning services also allowed store managers to focus more attention on maximizing books sales, particularly at locations with in-house cleaning staff that required training and supervision. HEED THE DOWNSIDE
One of the biggest concerns about outsourcing janitorial services, especially when there are several contractors involved in the outsourced program, is how much the actual cleaners are paid. In the case of the national bookstore chain, for example, once each subcontractor takes their ‘cut,’ there may be little left to adequately pay for the hard work of keeping the 400-plus stores in tip-top shape. Accordingly, less-qualified and poorly trained workers may be hired, and contractors may experience considerable employee turnover. In addition, with little cash to spare, contractors may not be able to afford quality cleaning tools and equipment. The result is often less than
/ business management / satisfactory cleaning outcomes. Another drawback of outsourcing is loss of control. Facility managers don’t actually employ the cleaners, so they can’t directly manage and instruct the workforce. As well, they don’t know who the cleaners are and whether they’ve undergone thorough background checks, if at all, which leaves the hiring company and the facility vulnerable to theft and property damage. Contracted companies also face risks. For instance, if the Canada Revenue Agency (CRA) determines a cleaning contractor is not hiring ‘true’ independent subcontractors but is instead employing people under the guise of subcontracting, the government can demand the contractor pay back taxes. Depending on the amounts, this can severely impact the survivability of any business. In a worst-case scenario, all of the locations cleaned and maintained by this contractor may quickly be without service, requiring facility managers to come up with a Plan B on the fly. In de-
termining whether a person or organization is a true independent contractor or employee, the CRA uses a six-point test. Criteria considered include control, tools and equipment, subcontracting work or hiring assistants, financial risk, responsibility for investment and management, and opportunity for profit. THE TAKEAWAY
Success in outsourcing is dependent on a variety of factors, the most important being choosing the right contractor and having clearly defined roles and responsibilities. Facility managers should look for a professional cleaning company that will be responsive to their needs; offer suggestions to help make the facility healthier, streamline cleaning needs and
reduce costs; and represent the facility in a positive light while working on the premises. This involves researching potential partners and even speaking with their existing clients to gauge customer satisfaction. Upon doing so, narrow the field to a few reputable contractors and invite each to give a 30-minute pitch. Ideally, the presentations should be performed on the same day for easy comparison. Over the course of the day, one contractor usually surfaces to the top. Once a contractor has been selected, it’s important that the facility manager explicitly communicates what’s expected and the work to be performed, even putting it down in writing. This will ensure there’s no misunderstanding going forward and lay the foundation for a strong and hopefully long-lasting relationship. /
Ron Segura is founder and president of Segura & Associates, an international janitorial consulting company based in the U.S. He has 45-plus years’ experience in the cleaning industry, 10 of which he’s spent overseeing the cleaning of more than 4.5 million square feet for Walt Disney Co.
WE’RE EVERYWHERE YOU ARE Hamilton Kitchener Niagara 1.800.263.2137 www.gtfrench.ca
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/ clean matters /
1
2 INNOVATION
OF THE YEAR
SIMPLY THE BEST Canadian comedian Howie Mandel brought laughs to Las Vegas, but that’s not the only reason people were smiling at this year’s ISSA/INTERCLEAN North America trade show and convention. The results of the Innovation Award program, announced by keynote speaker and self-confessed germaphobe, Mandel, had many in the professional cleaning industry beaming from ear-to-ear, but probably none more so than members of the Clorox Professional Products Co. team. The Clorox Total 360 System took home top prize — the 2017 Innovation of the Year Award — on top of receiving a Visitors’ Choice award. The revolutionary new system uses electrostatic technology to optimize product delivery to provide comprehensive surface coverage in even the hardest-to-reach places. ISSA’s annual Innovation Award program celebrates products that are helping to drive the professional cleaning industry forward. 2017 was one of the most competitive years, with a pool of 44 entries from 38 companies. Entries are organized into five categories: cleaning agents, dispensers, equipment, services and technology, and supplies and accessories. Category awards are the result of online voting that took place two months prior to the event. Show attendees could also cast ballots on-site for Visitors’ Choice awards after viewing the products in person. This year’s award recipients were i-team Global for i-mop XXL; Makita USA for Robotic Vacuum; Square Scrub for Doodle Skate; Rubbermaid Commercial Products for Spill Mop; and Clorox Professional Products for the Clorox Total 360 System.
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Cleaning Agents. Stone Floor Protection System. 3M Commercial Solutions Division.
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Dispensers. enMotion Flex Paper Towel System. GP PRO.
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Equipment. Doodle Skate. Square Scrub.
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Services & Technology. Business Intelligence Software. CleanTelligent.
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Supplies & Accessories. Self-Cleaning Surfaces for Travel and Hospitality. NanoTouch Materials.
22 / FACILITY CLEANING & MAINTENANCE / OCTOBER 2017
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