In-House Janitor vs Outsourced Janitorial Service

The wage is the smallest part of the comparison. Here is the rest.

An in-house janitor gives you direct control and a familiar face, but the true cost includes much more than the hourly wage: payroll taxes and benefits, supplies and equipment, training and safety compliance, coverage for absences and turnover, and the management time to supervise it all. Outsourced janitorial service bundles those costs into one price and transfers the staffing risk to the contractor. For a small or mid-size building, compare an outsourced proposal against the full cost of in-house staffing; neither approach is always cheaper. Larger organizations with constant daytime needs sometimes do better in-house.

The wage is only the beginning

In the Fargo metro, the Bureau of Labor Statistics reported a mean wage of $20.11 an hour for building and grounds cleaning and maintenance occupations in May 2025. But an employer's cost per hour worked is higher. BLS's Employer Costs for Employee Compensation data consistently show that benefits and legally required costs add a substantial share on top of wages for private-industry workers.

Full cost of an in-house janitor

Cost categoryWhat it includes
WagesHourly pay, overtime, shift differentials
Payroll taxes and insuranceSocial Security, Medicare, unemployment insurance, workers' compensation
BenefitsHealth insurance, paid time off, retirement contributions if offered
Paid time not cleaningHolidays, vacation and sick days, when the building still needs cleaning
CoverageTemporary help, overtime for others, or simply no cleaning when the janitor is out
TurnoverRecruiting, interviewing, background checks, onboarding and training a replacement
SuppliesChemicals, liners, paper products, microfiber, gloves
EquipmentVacuums, carts, mops, floor machines, plus repair and replacement
ComplianceHazard communication training and safety data sheets under OSHA's standard, PPE, injury reporting
SupervisionSomeone's time to schedule, check work and handle problems
LiabilityWorkplace injuries and property damage fall on your insurance

Full cost of outsourced service

The contractor's price covers wages, payroll costs, supplies and equipment, training, coverage, supervision, insurance and profit. Your remaining costs are mainly:

  • The contract price
  • Consumables if not included (paper, soap, liners)
  • Your time managing the vendor, which should be small with a well-run provider

Illustrative comparison

A 15,000-square-foot Fargo office needs about 20 hours of cleaning a week.

In-house: a part-time janitor at 20 hours a week. Add payroll taxes, workers' compensation, some paid time off, supplies, equipment amortized over a few years, periodic turnover costs and an office manager's supervision time. The cost per productive hour ends up well above the wage, and there is no coverage when the janitor is sick or quits.

Outsourced: a contractor quotes a monthly price based on the same 20 hours. The loaded hourly rate is higher than the wage, but it already includes everything above, plus a supervisor, backup staff and insurance.

In many cases the two totals land closer than the wage-versus-rate comparison suggests, and the outsourced option carries far less risk and management time.

Non-financial factors

FactorIn-houseOutsourced
Control over daily tasksHighThrough scope and account lead
Daytime presenceNaturalAvailable but costs more
Coverage for absencesYour problemContractor's problem
Expertise and trainingDepends on your hirePart of the service
Supervision and QAYour timeContractor's supervisors
ScalabilityHire or cut hoursAdjust scope
Security vettingYour HR processContractor's screening plus your requirements
Liability for injuriesYour workers' compContractor's workers' comp
Turnover riskHigh in this occupationAbsorbed by contractor

When in-house makes sense

  • Large facilities needing constant daytime presence, such as a big manufacturing plant or campus
  • Organizations that already employ a facilities team with supervision capacity
  • Roles that combine cleaning with many unrelated duties specific to the organization

When outsourcing makes sense

  • Small and mid-size buildings that need a few to 40 hours of cleaning a week
  • Organizations without a facilities manager to supervise custodial staff
  • Buildings that need after-hours cleaning, when nobody is there to supervise
  • Organizations that want insured, bonded, background-checked staff without building that process themselves
  • Multi-site organizations that want consistent standards

A hybrid option

Some organizations keep a daytime employee for light tasks and outsource nightly cleaning. Others outsource cleaning and keep an in-house maintenance person. Northmark can also combine janitorial service with facility maintenance to cover both.

Questions to answer before deciding

  1. How many hours of cleaning does the building truly need each week?
  2. Who will supervise an in-house employee, and how much is their time worth?
  3. What happens when the employee is out for a week?
  4. Who handles chemical training and safety data sheets?
  5. What would turnover cost you once a year?

For pricing context, see our Fargo commercial cleaning cost guide and janitorial pricing per square foot. Small businesses should also see small business janitorial.

Frequently asked questions

Is it cheaper to hire a janitor or a cleaning company?

Compare both options for the same scope and productive hours. Include payroll costs, supplies, equipment, absence coverage, turnover and supervision. The less expensive option depends on your building and staffing needs.

What does an in-house janitor really cost?

Wages plus payroll taxes, workers' compensation, benefits, paid time off, supplies, equipment, training, turnover and supervision time.

Who is liable if a contract cleaner is injured?

Typically the contractor's workers' compensation covers its own employees. Confirm coverage with a certificate of insurance.

Can we outsource nights and keep a daytime person?

Yes. Many organizations use a hybrid approach.

Sources

Published · Updated · Northmark Facility Services.

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