How to handle nanny raise this year

[Anonymous]

Our nanny is coming up on her 4 year anniversary with us and each year has received a $2/hr raise. Last fall my youngest went to Kindergarten but we wanted and needed to keep our nanny full time since DH and I both leave for work before the kids go to school and work long hours, and we need someone reliable like she is. And we still feel the same with our kids going into 1st and 4th now.

That said, we pay her for 40 hours per week regardless of how much she works, as well as overtime if she stays late past 6 which usually happens once per week. The challenge is that most weeks we only needed her around 30 hours per week for a majority of the year, and then still paid overtime when she works late, so trying to figure out how to approach a raise when we are paying her for much more time that we actually use.

The best option seems to be to not give her a raise but still guarantee 40 hours plus overtime so she doesn’t make less money. If we bring her down to 30-35 hours and keep her weekly pay flat that would mean a pretty big, like $5+ per hour, raise and I don’t know if that makes sense either.

We don’t want to lose her but we also don’t just have endless amounts of money to keep paying more for less indefinitely.

Any creative ideas on how to approach this?

[Anonymous]

I would keep her pay the same and pay for the guaranteed hours/overtime as you have been. I would have a convo about it with her though, wouldn’t just let it ride.

[Anonymous]

So she’s not worth another 4k?

[Anonymous]

Sit down and talk with her and explain it just the way you did here. Nannies rarely leave good families over $ alone.

[Anonymous]

I would give her a combo of extra PTO and 1%

[Anonymous]

Any chance she would be well-suited and willing to cover other tasks in the extra time? I have a colleague who kept the nanny on as "house manager" after the child aged out of needing a nanny.

[Anonymous]

Are you already paying toward nanny’s healthcare? That is what we added when in your situation. It was less than the $2/hr, approx $4,000/year increase and we did as lump sum. Cannot remember but think we maybe offered $2,500 lump sum + that guaranteed hours, we also paid for 2 weeks vacation so if not doing that already that is other option. We also did take out for taxes and that ruled out some that would work with us so for us was helpful to keep someone knew worked well with family.

[Anonymous]

Anonymous wrote:Are you already paying toward nanny’s healthcare? That is what we added when in your situation. It was less than the $2/hr, approx $4,000/year increase and we did as lump sum. Cannot remember but think we maybe offered $2,500 lump sum + that guaranteed hours, we also paid for 2 weeks vacation so if not doing that already that is other option. We also did take out for taxes and that ruled out some that would work with us so for us was helpful to keep someone knew worked well with family.

I am above poster- should clarify, we did not withhold. What I mean by take out for taxes is we did the mandated reporting where nannys have to do taxes- not that we withheld $. She got full pay but subject to taxes.

[Anonymous]

You will probably have one more year of needing this level of childcare. With the stress of your jobs and other responsibilities knowing that you have trusted, consistent care for your kids is hard to value by just its financial cost. Since you can see her role and your needs changing use this next year to either transition her job into nanny plus (household manager); prepare her to move to part-time; realize that she needs to find new, full time work eith potential. She herself knows that there is an end-date to this job with you. Talk to her and make a plan. IF I could afford it I would move her to 25% of work as lifting the needed household tasks off my plate, be that groceries, laundry, errands. She may also be thrilled to step back to less hours.

[Anonymous]

Anonymous wrote:Our nanny is coming up on her 4 year anniversary with us and each year has received a $2/hr raise. Last fall my youngest went to Kindergarten but we wanted and needed to keep our nanny full time since DH and I both leave for work before the kids go to school and work long hours, and we need someone reliable like she is. And we still feel the same with our kids going into 1st and 4th now.

That said, we pay her for 40 hours per week regardless of how much she works, as well as overtime if she stays late past 6 which usually happens once per week. The challenge is that most weeks we only needed her around 30 hours per week for a majority of the year, and then still paid overtime when she works late, so trying to figure out how to approach a raise when we are paying her for much more time that we actually use.

The best option seems to be to not give her a raise but still guarantee 40 hours plus overtime so she doesn’t make less money. If we bring her down to 30-35 hours and keep her weekly pay flat that would mean a pretty big, like $5+ per hour, raise and I don’t know if that makes sense either.

We don’t want to lose her but we also don’t just have endless amounts of money to keep paying more for less indefinitely.

Any creative ideas on how to approach this?

You pay for her convenience. She has performed her job to your satisfaction and for your convenience. Don't give her a raise and you are creating resentment and she will find a new job.

[Anonymous]

Anonymous wrote:You will probably have one more year of needing this level of childcare. With the stress of your jobs and other responsibilities knowing that you have trusted, consistent care for your kids is hard to value by just its financial cost. Since you can see her role and your needs changing use this next year to either transition her job into nanny plus (household manager); prepare her to move to part-time; realize that she needs to find new, full time work eith potential. She herself knows that there is an end-date to this job with you. Talk to her and make a plan. IF I could afford it I would move her to 25% of work as lifting the needed household tasks off my plate, be that groceries, laundry, errands. She may also be thrilled to step back to less hours.

Fewer hours!

[Anonymous]

Anonymous wrote:Any chance she would be well-suited and willing to cover other tasks in the extra time? I have a colleague who kept the nanny on as "house manager" after the child aged out of needing a nanny.[/quote

Your best bet is to ask her directly; some nannies would rather find another fam with a baby as some are not comfortable doing House manager chores.

[Anonymous]

Anonymous wrote:Are you already paying toward nanny’s healthcare? That is what we added when in your situation. It was less than the $2/hr, approx $4,000/year increase and we did as lump sum. Cannot remember but think we maybe offered $2,500 lump sum + that guaranteed hours, we also paid for 2 weeks vacation so if not doing that already that is other option. We also did take out for taxes and that ruled out some that would work with us so for us was helpful to keep someone knew worked well with family.

+1. We pay our nanny’s monthly health and dental premiums. She gives us a copy of the insurance card and each payment and we reimburse her in full.

[Anonymous]

You’re paying her for more hours than you need, but what would house expect her to do with those extra 10 hours per week? She can’t go get another job during those hours. You do have to pay extra when you need morning and afternoon hours only. That’s because of your schedule, so you suck it up. That’s not her fault.

[Anonymous]

I had this conversation with Mom's estate attorney about paying adult caregivers for Mom. He is a guy in his 90's still working full time in Towson.

He asked me if I wanted to keep the caregivers. I said yes. He said pay well and don't be too picky.

After that conversation we continued our $1 per hour raises (which I thought was a lot) every year and he had me raise our Christmas bonus from $250 a year per person to $1000 per person.

In retrospect it was a wise decision.

Do you want to lose your Nanny? It sounds like she is doing a good job and is reliable.

Also, it sounds like both you and your wife make a lot of money.

Pay the Nanny well if you don't want to lose her.