What if you could grow your cleaning business 30–40% without hiring more employees?
That’s exactly what David Loria from Squeaky’s Cleaning did. In this episode of the OWNR OPS Podcast, David broke down how he made one of the scariest changes in his business — switching from hourly pay to production pay and why it completely changed the game for revenue, profit, and his team.
Let’s dig into what production pay is, how it works, and why it could be the most important system you ever implement in your cleaning business.
What Is Production Pay in a Cleaning Business?
Production pay is simple: instead of paying your cleaners by the hour, you pay them by the job.
That means your employees are no longer punished for working faster. Under hourly pay, a cleaner who finishes a job early gets sent home and makes less money. With production pay, they’re rewarded for efficiency, not penalized.
David explained it like this:
- Old system (hourly pay): Two cleaners working together, getting 3–4 jobs done a day, making ~$17/hour.
- New system (production pay + solo cleaners): One cleaner per house, finishing 2–3 jobs a day, making $22–25/hour.
Same staff. Same workload. But now everyone wins: the business makes more revenue and the team earns more money.
Why the Switch Was So Scary
David called it “the most terrifying change” he’s ever made in business.
And I get it — changing your pay structure is not something employees take lightly. In fact:
- Some staff threatened to quit.
- A few actually did quit.
- The team was nervous and confused about how it would all work.
But David handled it the right way. He admitted to his team that he was just as scared as they were, brought in a consultant to help, and even tested the system with a couple employees first. Once those cleaners started making more money, the rest of the staff came on board.
The result? A stronger, more motivated team.
The Numbers Behind Production Pay
David’s goal was to keep labor costs between 35–40% of revenue.
Here’s how he set it up:
- Each cleaner gets paid a set percentage of the revenue for every job (35–40%).
- Labor costs are now consistent and predictable.
- If an employee works faster, they make more money per hour.
- If they’re slower, the incentive is built-in to get better.
This one system made labor costs reliable and helped Squeaky’s Cleaning grow 30–40% year-over-year without hiring more employees.
Tools That Made It Work
One of the biggest reasons this worked for David was the software he used: MaidCentral.
Unlike more general tools like Jobber or ServiceTitan, MaidCentral is built specifically for cleaning companies. It handles:
- Payroll
- Scheduling
- Pricing adjustments
- Job tracking
- Reports on employee efficiency
It also comes with a community of other cleaning business owners, which David says is worth the subscription price alone. Learning from peers already running multi-million-dollar cleaning companies gave him the confidence to implement production pay successfully.
Why Production Pay Isn’t Just for Cleaning
Here’s the kicker: production pay isn’t just a cleaning business thing.
- Pest control companies are adopting it.
- HVAC and plumbing businesses have used versions of it for years.
- Private equity firms buying service companies often make production pay their first big change.
Why? Because it aligns incentives. Owners get reliable labor costs, and employees get motivated to produce more.
Key Takeaways for Cleaning Business Owners
If you’re running a cleaning business and looking for ways to scale without constantly hiring, here’s what you should take from David’s story:
- Incentives matter. Paying by the job instead of by the hour changes everything.
- Expect resistance. Change is scary, but your team will buy in once they see the benefits.
- Track your labor percentage. Keep labor at 35–40% of revenue for healthy margins.
- Use the right tools. Software like MaidCentral makes payroll and scheduling easier.
- Think bigger. This isn’t just about cleaning — production pay works across many service industries.
Final Thoughts
David Loria’s story is proof that the right systems can completely transform your cleaning business.
Switching from hourly pay to production pay wasn’t easy — it took planning, communication, and some tough decisions. But the payoff was huge: higher profit margins, happier employees, and a stronger business.
If you’re serious about growing your cleaning company, it’s time to take a hard look at how you pay your team. Production pay might just be the shift you’ve been waiting for.
👉 Watch the full episode with David Loria on Spotify, Apple Podcasts, or YouTube.
📌 Join our FREE Skool group — OWNR OPS — to connect with other home service business owners.
📩 Subscribe to our newsletter to get valuable snippets from this episode and others straight to your inbox.
