Over the next five years, office management service Managed By Q will give 5% of the company to its workers, CEO Dan Teran announced at a press conference with United States Labor Secretary Tom Perez on Friday.
The two-year-old startup provides cleaning and other office management services, like handyman work, through an app-based platform that allows its clients to communicate directly with workers, request special projects, and coordinate schedules.
Secretary Perez said he hoped other companies, especially in the emerging on-demand space, would follow Managed By Q’s example. The company, which employs about 500 people in four cities (including its cleaners, who are employees and not contractors), provides fully paid health care, 401k, bonuses, and paid time off to its workers. “You are showing the world that in the on-demand space, you can innovate and you can ensure that innovation is inclusive,” Secretary Perez told Teran, pointing out other companies, like Proctor & Gamble and Shake Shack, that have launched similar programs in other industries.
Teran emphasized that profit-sharing with employees was part of his business model. “This is not a decision that was made out of altruism,” says. “This was a decision made by a company whose leadership, investors, and board of directors believe deeply that only through shared prosperity can we reach our fullest potential.”
Managed By Q will offer stock options to all operators and provide grant amounts to employees based on experience and skill set on July 1. “Our job is to show up every day and make it work and prove the model,” Teran said. “I think that will spur the next generation of companies that build their business along these lines.”