Contributor
Why Paying a Living Wage Is Smart Business — Not Charity
I was recently featured on CBC Radio Ottawa to talk about Cleen Detailing’s experience as one of the city’s certified Living Wage employers.
It’s taken several years (with a lot of ups and downs) for a living wage to become a reality in our business. And along the way, we’ve learned something most business owners never realize: paying a living wage isn’t just a commendable pursuit — it’s a smart financial investment.
In our case, a living wage significantly drove the largest contributing factor to us receiving over 1000+ 5-star reviews online, and becoming the #1 rated mobile car detailing service in Ottawa.
The Common Misconception
A lot of people assume that when a company pays a living wage, it means prices go up and customers end up footing the bill.
That sounds great for the business and it's employees, but not so great for customers.
In our case, the opposite is true.
We charge the lowest price we can afford, while still maintaining a healthy profit. The more efficient and profitable we become, the more competitive our pricing gets.
And what’s one of the biggest drivers of profitability in any service business?
Retention.
The Real Cost of Low Wages
Before we became a living wage employer, turnover was constant.
Low pay meant people treated detailing as a short-term job, not a career. Every few months, we were starting from scratch — recruiting, training, retraining.
That’s expensive.
Low wages don’t just hurt workers — they quietly drain the business through hiring costs, lost productivity, and inconsistent service.
When employees can’t make a living, they can’t focus on quality. They’re focused on survival.
We decided to change that. From day one, we committed to paying no less than a living wage — not as a feel-good gesture, but as a foundation for a stronger, more profitable company.
How We Made It Work
At first, it wasn’t easy. Margins were tight. But instead of cutting back, we built a performance-based pay model layered on top of the living wage.
Every team member earns a guaranteed living wage, plus bonuses for completing jobs efficiently, maintaining quality, showing up on time, and supporting the team.
That structure aligned everyone’s incentives — and turned our pay system into a profit driver.
The ROI of Doing the Right Thing
The results speak for themselves:
✅ Retention: Employees now stay multiple seasons — some for years.
✅ Quality: Skilled, consistent teams deliver better results and happier customers.
✅ Profitability: Lower recruiting costs, fewer mistakes, and stronger reviews.
One of our earliest employees started at about $20/hour (including tips) and now averages over $33/hour — not because of inflation or charity, but because he’s become more skilled and efficient.
Five years and over 1,000+ 5-star reviews later, we’ve built a growing, profitable business that’s more competitive every year — because our people are motivated, experienced, and proud of their work.
It’s Not Charity — It’s Capitalism Done Right
Paying people well isn’t a handout. It’s strategy.
When you treat employees as long-term partners instead of replaceable labour, you build loyalty, pride, and performance.
That translates into better service, happier customers, and stronger profits.
It’s not charity — it’s capitalism done right.
Looking Ahead: From Living Wage to Ownership
Our long-term vision goes beyond wages. We want our employees to become owners too.
The people who build this company every day should share in the success they help create.
We’re working toward a future where every team member can grow from earning a living wage to building long-term wealth and ownership.
Because when everyone has a stake — everyone wins.
Matt Graves
Owner, Cleen Detailing
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