How much of an annual raise?

[Anonymous]

Our nanny has been with us for about 4 1/2 years. After the first few months, we gave her a $1 an hour raid and then have gone up by $1 a year since then. She brought up that she would like a bigger raise this year. My pay actually went down this year (switched to a job with better work-life balance, but took a pay cut to do it), and DH's net pay went down since our cost for health insurance went way up. We adore our nanny and think she does a great job caring for our kids, but we just can't afford more than $1 this year. She is part time (her choice and it works ok for us), and we give benefits (paid sick days, paid holidays if they fall on her normal work days, paid vacation time) and a lot of flexibility both in terms of the schedule and letting her take care of personal matters or things for her family while she has our kids. We don't ask her to do anything other than care for the kids (i.e., she doesn't clean up their toys, do their laundry, cook for them other than making a PBJ or something for lunch). I'm concerned that we are pricing ourselves out of keeping her since, at this point, we could get an au pair for more hours per week and less money (and our kids are old enough now that it would be a good option).

What do other people do for raises? Is it always every year? How much do you give? Have you parted ways with a great nanny because she got too expensive over time?

[Anonymous]

If you can't afford more than you can't afford it. I'd tell her that you can't accommodate such a large increase and that she will receive her normal raise. If she doesn't agree and chooses to leave than you know it was for the best and can switch to a cheaper option without guilt. If she's not doing anything extra to deserve an additional increase from the standard than I don't understand why you would give it.

[Anonymous]

Time for an au pair.

[Anonymous]

Nanny poster.
$1 is typically the max I have seen in my career and among my nanny friends

Only exceptions are if nanny started off below market value, increase in duties ( household chores) ,or additional kids.


It sounds as though your nanny has a good situation .

Stick to a dollar raise you can afford.

I never think it's a good idea to stretch yourself thin budget wise to keep nanny it never works out.

Nannies understand v family situations change.

She will take the raise and find a part time gig that brings her to where she wants to be or move on to another job that meets her financial needs.

If she moves on assuming you are offering a competitive rage for your market and job requirements you will find a new nanny

[Anonymous]

As an fti its not unheard of for nannies to intentionally price themselves in it of a job they are no longer satisfied with.

Moving on for financial reasons is easier than having to hash out other issues

[Anonymous]

Unless you started out on the low end, I don't see the need for a dollar raise every year. She's asking for too much, IMO.

[Anonymous]

Giving a raise every year to a long term nanny is not nesasary unless you have more children during that time. I think after year 2 or 3 the raises should stop. Usually the work load goes down as children go to pre school

[Anonymous]

If you cannot afford her, and she cannot afford you, then it may be best for both sides to part ways.

Time for a sit down + a heart-to-heart talk about things.

Simply let her know you value her service to your children, and would love to pay her more, but due to changes in you and your husband's jobs as of late, you simply do not have the means to pay her what she desires.

If she is willing to continue working for what she is currently making, then you would love to keep her. However, if she feels she should be making more, then perhaps the time has come for both parties to part ways.

No hard feelings.

[Anonymous]

OP here. Thanks everyone. To 13:19, that is basically the conversation we had this morning. We love her, we value the care she has given our children and the relationship we have developed over almost 5 years, and we want her to stay as long as she wants to work for us. But, that we also understand if this doesn't work for her anymore and will support her in whatever she feels like she needs to do.

It helps to hear that I was not totally off-base in thinking that $1 a year was fair and it wasn't unreasonable to not be willing to keep going up indefinitely (or in bigger increments). If she decides it is time to move on, we will most likely go with an au pair, since I'm not sure we could find anyone else who wanted to work the number of hours we offer (average is about 15-20 hours per week) but give us the flexibility that we need (some weeks are 30 hours, others may only be 10) without having to basically pay for full time care (which would result in a lot of unused hours). I had several au pairs growing up; it was a wonderful experience, we are still friends with many of them, and it sounds like that might be a good option for us whenever our nanny decides this needs to end.

Thanks for the feedback!

[Anonymous]

I hope you guarantee her a certain amount of hours

[Anonymous]

Anonymous wrote:Giving a raise every year to a long term nanny is not nesasary unless you have more children during that time. I think after year 2 or 3 the raises should stop. Usually the work load goes down as children go to pre school

Agree, this was very apparent if you write down the newish scope of the job each year. Esp once a preschool or elementary school schedule begins.

[Anonymous]

If she has not gone above or beyond or taken on additional responsibilities, I don't understand how she can demand a larger raise.

Resist. She can take it or leave it.

[Anonymous]

Anonymous wrote:Our nanny has been with us for about 4 1/2 years. After the first few months, we gave her a $1 an hour raid and then have gone up by $1 a year since then. She brought up that she would like a bigger raise this year. My pay actually went down this year (switched to a job with better work-life balance, but took a pay cut to do it), and DH's net pay went down since our cost for health insurance went way up. We adore our nanny and think she does a great job caring for our kids, but we just can't afford more than $1 this year. She is part time (her choice and it works ok for us), and we give benefits (paid sick days, paid holidays if they fall on her normal work days, paid vacation time) and a lot of flexibility both in terms of the schedule and letting her take care of personal matters or things for her family while she has our kids. We don't ask her to do anything other than care for the kids (i.e., she doesn't clean up their toys, do their laundry, cook for them other than making a PBJ or something for lunch). I'm concerned that we are pricing ourselves out of keeping her since, at this point, we could get an au pair for more hours per week and less money (and our kids are old enough now that it would be a good option).

What do other people do for raises? Is it always every year? How much do you give? Have you parted ways with a great nanny because she got too expensive over time?

If you are just now after 4 years of raises reaching the point where an au pair is cheaper then you must pay an abysmally low amount... Au pairs earn like $3 an hour.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Our nanny has been with us for about 4 1/2 years. After the first few months, we gave her a $1 an hour raid and then have gone up by $1 a year since then. She brought up that she would like a bigger raise this year. My pay actually went down this year (switched to a job with better work-life balance, but took a pay cut to do it), and DH's net pay went down since our cost for health insurance went way up. We adore our nanny and think she does a great job caring for our kids, but we just can't afford more than $1 this year. She is part time (her choice and it works ok for us), and we give benefits (paid sick days, paid holidays if they fall on her normal work days, paid vacation time) and a lot of flexibility both in terms of the schedule and letting her take care of personal matters or things for her family while she has our kids. We don't ask her to do anything other than care for the kids (i.e., she doesn't clean up their toys, do their laundry, cook for them other than making a PBJ or something for lunch). I'm concerned that we are pricing ourselves out of keeping her since, at this point, we could get an au pair for more hours per week and less money (and our kids are old enough now that it would be a good option).

What do other people do for raises? Is it always every year? How much do you give? Have you parted ways with a great nanny because she got too expensive over time?

If you are just now after 4 years of raises reaching the point where an au pair is cheaper then you must pay an abysmally low amount... Au pairs earn like $3 an hour.

An au pair solution to childcare is very different than a nanny solution. Rate is only one piece of the equation and having someone live with you full time is a pretty significant decision. Don't make such rude assumptions about the OP simply because she hasn't chosen an au pair option previously.

[Anonymous]

Cost of living is now around 3.9% + a 3 to 5% merit increase. We usually give an annual raise of around 8 or 9% (we have a great nanny who always merits the highest merit increase). Longevity and loyalty of an employee, especially an employee as important to the family as a nanny, needs to be acknowledged. We have had the same nanny for four years. Her job change as our daughter gets older but it is no less work for the nanny (I actually think the driving back and forth to school and lessons in this traffic is harder than when DD was a baby).