Hiring a Nanny: Important Industry Standards

When searching for a highly-qualified nanny or household manager, it’s important to remember that you want your position to be attractive, intriguing, and marketable. If you are seeking a career nanny, this goes far beyond offered hours and pay rate. As with any other career, other benefits are often expected and deeply appreciated.

So if you’re looking for a way to make sure your job listing stands out and attracts experienced, passionate, long-term candidates, then you’ve come to the right place!

Let’s walk through some industry standards and added benefits you might consider when preparing a competitive offer for your best-fit nanny:

1. Guaranteed Weekly Pay (and Applicable Overtime)

   Guaranteed pay is a nonnegotiable industry standard. It provides stability and consistent income for your nanny or caregiver. They are guaranteeing their availability to work your agreed-upon schedule every week, and in turn, you will need to guarantee pay. In the event that you do not need your nanny to come in during their regularly-scheduled hours (perhaps grandparents are in town or you go on vacation without your nanny), you would still need to pay them their normal weekly rate, as this is outside their control. Think of it this way: If you worked in an office and were simply told, “Office is closed for the week! You can’t come in, and you won’t be paid,” that probably wouldn’t sit well with you. The same goes for nannies! They are deserving of guaranteed pay, 52 weeks a year, paid legally using a W-2. Now this guaranteed pay is NOT the same as a salary. Under the FLSA (Fair Labor Standards Act), most household employees (including nannies) are classified as non-exempt workers and are required by law to be paid at least the federal minimum wage and overtime pay at time-and-a-half the regular rate of pay for all hours worked over 40 in a week.

2. PTO, Sick Days, and Holidays

   The minimum PTO requirement for a full-time nanny is two weeks of paid vacation in a calendar year, one week of the family's choosing and one week of the nanny's choosing. Oftentimes, if families are able to offer a bit more PTO, at their discretion and dependent upon their schedule, this is greatly appreciated by their caregivers! With part-time nannies, adjustments are made accordingly, based on hours worked in a week. In long-term partnerships, especially one like nannying that involves a great deal of hands-on (and sometimes labor-intensive!) work, PTO is an excellent way to invest in your employee’s well-being and help them avoid burnout. Additionally, your nanny should be offered 3-5 sick days, as well as 6-10 paid holidays (which should be agreed upon in your contract).

3. Mileage Reimbursement

   If your nanny or household manager is utilizing their personal vehicle for transportation during working hours (whether that’s picking up/dropping off kids or running errands for the family), they must be reimbursed for this mileage at the IRS rate. Currently, that rate is 67 cents per mile, but it is important to keep in mind that this rate changes from year to year and will need to be updated and adjusted accordingly. Additionally, if your caregiver’s day-to-day schedule involves frequent driving, you might opt to financially assist them with other routine vehicle maintenance to account for normal wear and tear and to ensure that their vehicle stays safe and running smoothly.

4. Health Insurance Stipend

   While nanny healthcare stipends are not required, we have been excited to see that more families have begun to offer this benefit as part of their compensation packages, especially for full-time caregivers. This stipend may range from $50-500+ per month, and your nanny can use this allocated amount toward a marketplace plan that works best for their needs. When you contribute to your nanny’s health insurance premium, this amount is considered to be nontaxable compensation, both for you and for your nanny, which makes it particularly advantageous for both parties! For more details on this, check out this helpful article from HomeWork Solutions: Great Options for Nanny Health Insurance Benefits.

5. Annual Bonuses

   Performance-based raises and additional bonuses are up to you, as the family, but it is customary in the industry for nannies to receive an annual cost-of-living and performance raise, as well as a holiday or year-end bonus of 1 to 2 weeks' pay.

6. Other Creative/Discretionary Benefits

   If you are looking for additional ways to make your position enticing for candidates, there are certainly other options to consider! Perhaps you’d like to support your nanny in their professional development by sponsoring their registration to a nanny conference or training. At Nanny Harmony, we hosted Chicago’s International Nanny Training Day this year, and it was an excellent opportunity for caregivers to expand their skillset, learn new methods, and network with other caregivers in the community. Families might also offer retirement account options and contributions to help their nanny plan and save for their future, or they might add their nanny to their gym membership or allow their nanny to make use of their vacation home for a weekend. The sky’s the limit, and it can be fun to get creative with these benefits and incentives!

We wholeheartedly understand that your family’s budget will be a factor in all of this, and that is not something to be taken lightly! Even small gestures matter, and any effort you put into making your nanny feel valued and appreciated will go a long way.

We’ve said it before, and we’ll say it again:

When you hire a professional nanny, you should be prepared to treat them as just that: a professional.

This is an integral piece of having a healthy, long-lasting partnership between you and your nanny. Our team at Nanny Harmony would love to walk you through the process of finding a nanny or household manager who will fit seamlessly into your family and routine, and during this process, we will set you up with a comprehensive employment agreement that accounts for all of the benefits above (and so much more!) and takes into consideration the unique needs of your family and your ideal caregiver. Fill out our family application to begin the process today, and allow us to take the stress and guesswork out of your search. We are here for you, the whole way through!