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Total cost comparison

In-House vs. Outsourced Janitorial: Which Costs Less?

Comparing a custodian's hourly wage with a contractor's monthly price leaves out most of the cost. Here is the full list, line by line.

By the EBS Maintenance team ·

A man in a black shirt with the EBS logo writing on a clipboard in a lobby with a marble wall, a US flag and a large state seal, the EBS team behind cleaning programs in Southern California

The short answer

In the in-house vs outsourced janitorial comparison, outsourcing usually costs less for small and mid-size facilities once every cost of employing cleaners is counted, because a contractor spreads supervision, training, equipment, purchasing and backup staffing across many sites. In-house staff can cost less at a large single site with a steady workload and a facilities department that already absorbs supervision and HR. The honest comparison is total annual cost for the same scope, not an hourly wage against a contract price.

In-house vs outsourced janitorial: every cost line compared

Most in-house budgets count wages and little else. The table lists every line that belongs in the comparison, and which side carries it.

Cost lines in a janitorial make-or-buy comparison
Cost lineIn-houseOutsourced
Wages for scheduled hoursYou pay directlyBuilt into the contract price
Payroll taxes and workers' compensationYou payContractor pays
Benefits and California paid sick leaveYou payContractor pays
Recruiting, onboarding and background checksYou pay, repeatedly with turnoverContractor absorbs
Supervision and quality inspectionsFacilities staff timeContractor's supervisors
Absence and vacation coverageOvertime, temps or work left undoneContractor's backup staff
Equipment (scrubbers, extractors, vacuums) and repairsCapital purchase plus upkeepUsually contractor-owned
Cleaning chemicals and toolsYou buyUsually included
Safety program and training recordsYour IIPP and hazard communication dutiesContractor's program for its own employees
Contractor overhead and marginNoneIncluded in the price

Costs in-house budgets usually miss

Absence coverage is the biggest. A single custodian's vacations, sick days and resignations leave gaps that are filled by overtime, a temp agency or nobody at all. California's paid sick leave law (Labor Code sections 245 to 249) and ordinary turnover make those gaps a certainty, not a risk.

Equipment is the second. A building with large hard-floor areas needs an auto-scrubber, a burnisher and an extractor, each with batteries, pads and repairs, and the in-house team may use them only a few days a year. Third is management time: someone in facilities writes schedules, checks the work, handles complaints and keeps the injury and illness prevention program required by Title 8 section 3203, plus hazard communication under section 5194, current for the cleaning staff.

When keeping janitorial in-house can cost less

In-house can win when the site is large enough to keep a full team busy every shift, the scope rarely changes, and an established facilities department already provides supervision, HR and purchasing. Campuses, hospitals and large manufacturers sometimes fit that profile, as do organizations that want direct control over who enters sensitive areas.

Many of those organizations still use a hybrid: in-house staff for daytime and sensitive work, and a contractor for nightly cleaning, floor projects, carpet extraction and window work that need equipment and specialized crews.

A rotary disc machine scrubbing foam into a terracotta-patterned rug laid on a tile floor, illustrating the EBS article "In-House vs. Outsourced Janitorial: Which Costs Less?"

How to run the comparison yourself

Treat the comparison as two bids for the same written scope. Work through the steps below before deciding.

  • Measure cleanable square footage and list every task with its frequency
  • Estimate annual labor hours from realistic production rates, not from today's staffing
  • Load in-house wages with payroll taxes, workers' compensation, benefits and paid leave
  • Add supervision, recruiting, training, equipment depreciation, repairs, chemicals and tools
  • Add the cost of covering absences at overtime rates
  • Get contractor proposals priced on the same scope and frequencies
  • Compare total annual cost, then weigh control, flexibility and risk

Factors that do not show up on the spreadsheet

Control and flexibility pull in opposite directions. In-house staff are yours to direct minute by minute; a contractor can add crews for a move, a flood or a reopening and remove them afterward without layoffs. Contractors also take on the employment risk for their own staff, including wage-and-hour compliance and workers' compensation claims, which some organizations value as much as the savings.

Consistency depends on management on either side. An in-house team without supervision drifts, and so does a contract crew without inspections. Ask either option how quality is measured and how problems get fixed.

What outsourcing to EBS covers

With 100+ employees and more than 25 years in commercial cleaning, EBS Maintenance carries the labor, supervision and coverage lines in the table above. Backup staffing covers absences, field supervisors and eHub inspections track quality and corrective actions, and crews are licensed and insured, trained, vetted and background-checked.

EBS also has specialized capacity for floor care, carpet, glass and pressure washing, so periodic projects do not mean buying machines you will rarely use. A free walkthrough gives you a priced scope to put beside your in-house numbers.

Related questions

Still not sure? A supervisor can answer at the walkthrough.

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Is outsourcing janitorial cheaper for a small office?

Usually. A small office rarely needs a full-time custodian, and a part-time employee still brings payroll, supervision, supplies and coverage problems. A contractor can schedule exactly the hours the space needs and supply the equipment, which typically makes contract cleaning the lower total cost at that size.

Can we keep some in-house custodians and outsource the rest?

Yes, and many larger organizations do. A common split keeps in-house staff for daytime support and sensitive areas while a contractor handles nightly cleaning and periodic floor, carpet and window work. Write clear boundaries into both job descriptions and the contract so tasks are not duplicated or missed.

Who covers a contract cleaner who is injured on our site?

The cleaning contractor's workers' compensation insurance covers its own employees. Ask for a certificate of insurance showing workers' compensation, general liability and any other coverage your contract requires, and keep it current. Your own safety duties for the site's hazards still apply.

Does an outsourced cleaning company supply products and equipment?

Usually it supplies cleaning chemicals, tools and machines, and states that in the proposal. Restroom paper, soap and trash liners vary: some buildings buy their own consumables and some have the contractor supply and invoice them. Settle the split in the scope so both bids are compared on the same basis.

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