Does it seem like your labor costs go up and down with the weather?

That’s how it actually is for one of America’s top car wash companies, recently recognized by The Wall Street Journal as one of the Top Small Workplaces for 2009.

When it’s sunny, people want their car washed right now. When it starts raining, suddenly no one wants a car wash.

How do you adjust your labor costs to that?

Mike’s has used Gainsharing to keep labor at or below targeted levels and reduce turnover for many years.

Last year, $569,000 was paid out in Gainsharing, averaging approximately $1.25 per hour extra pay per employee.

Mike’s Car Wash Inc. is no small company. Last year it had $55 million in annual revenue, 37 locations and 437 full time equivalent employees (261 full-time, 352 part-time).

Each car wash location sets targets for labor costs. If the location beats these targets, the “gains” are shared among the non-managerial employees. They also require all employees to watch a weekly 10-minute video with information on new company practices, customer service information and other job related news.

Further information from the Wall Street Journal article about Mike’s selection as one of the Top Small Workplaces 2009 can be found by clicking here.