Annual Nanny Raise Question

[Anonymous]

We are looking for a long term nanny and hope to have the same person for at least 5 years if possible. We met someone we really love but she is at the top of what we can pay, and I worry that she will be too expensive to keep for many years if the expectation is a raise every year. The other tricky thing is that while we need her for 50 hours per week now, once my younger DC starts school next fall (2022) we will certainly not need as many hours.

My first question is - does everyone do an annual raise and is that expected? It is typically $1 per hour more?

Second, do people ever keep salaries flat but reduce a nanny’s hours so they are making more per hour even if take home is the same? If so, do we need to be up front about this when hiring?

I just can’t imagine starting at $25/hr now and being able to pay $30/hr a few years down the road.

[Anonymous]

You should ask her how she feels about that. She might be setting her rate high because she’s not assuming 5 years of raises.

[Anonymous]

If you can't afford her rate you shouldn't hire her. Talk to her, but this would be a huge red flag for some.

[Anonymous]

No, you shouldn’t keep salaries flat. She deserves a cost of living increase at the very least.

If you cannot afford her, don’t hire her.

[Anonymous]

You don’t think your salary will increase by five dollars an hour in five years?

[Anonymous]

1. $25 an hour is pretty high for just one kid. Do you really need a $25 an hour nanny?

2. It's unusual for a family / nanny relationship to last this long. Inevitably something happens like you move, nanny quits, you put your child in preschool earlier than expected, etc. I wouldn't worry about 5 years from now.

[Anonymous]

When we were considering nannies, I got the impression that many people thought of it as $ per week. They would rather make more money than get 5 random hours off in the middle of Thursday. Their income level doesn’t typically allow them to make that trade. One kid vs two just meant an easier gig if their base salary is met. And yes everyone expects raises or they will always be looking for their next job (and could/should be anyway, who has that luxury?).

[Anonymous]

Twenty-five dollars an hour for a Nanny seems a little pricey to me.

Are household duties included in her job responsibilities?
If she is to work ten OT hours a week, then that can get pretty expensive.

What are her qualifications OP?
A college degree from a good university?
Glowing multiple references??

[Anonymous]

We do annual raises but $.50 rather than a dollar. Started at $18 a few years ago and now up to $20. It's been an adjustment because neither DH nor I have gotten raises during this time period, but we felt we should do something and that was manageable.

[Anonymous]

Thanks all, we have 2 kids and nearly every nanny we interviewed wanted $25 per hour. There was one who quoted $23 but she was much younger and only had 2 years of experience. While things could certainly change and we won’t need someone for 5+ years, given DH’s and my work schedules we will likely need full time care for many years to come since we can always do school drop off in the AMs and need coverage for breaks, summer etc.

Maybe we will need to keep looking.

[Anonymous]

Anonymous wrote:Thanks all, we have 2 kids and nearly every nanny we interviewed wanted $25 per hour. There was one who quoted $23 but she was much younger and only had 2 years of experience. While things could certainly change and we won’t need someone for 5+ years, given DH’s and my work schedules we will likely need full time care for many years to come since we can always do school drop off in the AMs and need coverage for breaks, summer etc.

Maybe we will need to keep looking.

$25 is definitely the starting rate for a legal nanny with good English. I know, it’s sticker shock. More interviews aren’t going to drop the price. Have you considered an au pair?

[Anonymous]

Nanny here.

Live-out nannies have a set number they need to meet each week. How they meet it is variable, but the cost of their home, food and other necessities doesn't drop due to their employer needing fewer hours in subsequent years. A lot of families stay at the same salary, at least starting after one raise, but they do that by offering other perks. In your case, if you're willing to continue paying for 50 hours (for availability for sick days, vacations, days off school) next year, you'll likely be able to keep the same nanny at the same rate. Don't add other tasks, just keep the availability and the same salary.

Live-in nannies can be more flexible, but you still pay more for more education and/or experience. You still pay more for more children. You still pay more for more tasks.

APs have very strict rules about the number of hours and days per week (no more than 45 hours, no more than 5.5 days, some agencies regulate hours/day to 9 or 10). They have rules about what the APs are allowed to do. And unless you get an extraordinaire, you're looking at the equivalent of a babysitter, someone with little experience and likely no relevant education. However, this is typically the cheapest option for families with 2+ children (cheapest option for families with 1 is a nanny share), since the agency fee is around 9k, and base pay for the AP is around 12k for the year.

In-home childcare is expensive. If it's outside of your budget, that's understandable, because most people can't afford it. There are decent and good options for people who can't afford in-home care or don't want it. There are also families who dip into savings and/or put aside the take-home pay for the lower earning parent expressly to pay for childcare, because they know it's better for their children in the short-term and it's better for the parent's career in the long-term. Only you (and your partner) can decide what makes the most sense financially.

[Anonymous]

If good English grammar, vocabulary and the ability to read to your child in English are important to you than $25 is the going rate.

Yes, you do need to give COL raises annually plus merit. Same as your job, no doubt.

That said, I do know quite a few wonderful and loving Spanish speaking nannies who are less expensive.

For us the inability to read to our child and no text messaging made us choose a $25 an hour nanny two and a half years ago.

[Anonymous]

If you can afford $25 now, you’ll be able to afford $30 in five years as your and DH’s salaries will increase with COL and merit increases.

And in all honesty, $25 an hour for all good nannies do for your children is a bargain in my book.

[Anonymous]

Anonymous wrote:If you can afford $25 now, you’ll be able to afford $30 in five years as your and DH’s salaries will increase with COL and merit increases.

And in all honesty, $25 an hour for all good nannies do for your children is a bargain in my book.

That’s not a given.