I've heard too much ... uh... spirited debate on the pay for nannies.
I know nanny pay is low. There is always need for more money.
On the part of the families, mother's job has to pay at least a certain amount to make the nanny worth while. It doesn't matter what the household income is, only what the lowest earner income is. Because if nanny costs more than that, one of the parents can stay home and do everything their way. It really doesn't make sense for us to pay the nanny $20 or $25 if the mom is not earning much more than that. Added with the benefit of raising your own children, basically the MB has to make at least a 100k for any nanny to be worthwhile.
I'm not talking about the $7 dollar nannies here. Those nannies' next step should be to find the $15+ job. I'm talking about the $18 nannies who need more to start a family, but want to have a life of taking care of children.
So, what is a nanny who just absolutely loves children and make this her life's work? Be satisfied making 50k year with no room for growth?
As an MB, it is really hard for me to find the smart, loving, nannies who are motivated to work hard because those people find another career. I don't want these people to be discouraged and leave the nanny profession. We do need good nannies working for the future of our children.
What is the answer? The nannies who need a pay jump from the $18 pay range need to think about opening their own home daycares. You must be smart enough to do it. You must work some as a nanny or whatever else to buy a house in the right zone that allows this. Research what you need to do and plan. One of the requirements is a house in the right zone. Another is for everyone living in the house to get a background check. There are other requirements.
How much HHI would nanny need to buy a home in the "Right Zone"? If nanny (and spouse if one exists) is not able to afford such a home, then what?
A home daycare can have up to 12-13 kids. If you charge 300/week per child, and have 5 children, that is 52*300 *5 or $78k. Subtract some costs for the house you need to have, some helpers, etc. You need to know how to run a business. Manage your workers, not go bankrupt. People will be complaining about you the way nannies on this board complain about MBs. ("My boss says I can't look at my phone during work!") Are you smart enough to do this? Are you smart enough to run a business?
Well, 12 - 13 kids is only feasible if the home one is able to afford in the right zone is large enough to allow 12 - 13 kids to attend said daycare. I would guess there are square footage regulations - the 60 page booklet on family daycare for my state says there must be a minimum of 35 sq ft of space per child, so 13 kids would need at least 455 sq ft, or a room 20 x 23. Frankly, I wouldn't leave my kid in a 20 x 23 room with 12 other kids and 3 - 4 adults. EVER. (Oh, and in my state, family daycare is limited to 6 kids unrelated to the owner.)
So let's look at your math now. 300 x 5 = 1500 a week. I have 1 FT helper, and pay her 8/hour for 40 hours/week, and one PT helper, paid 8/hr for 20 hours/week.. I am open from 7a - 7p, which I had to do to find 5 clients willing to pay $300/week. Food costs for the 5 kids I have are about $200/week, because I offer more than the bare minimum required food - I get clients that way as well, who prefer their kids eat healthy food that isn't pre-packaged, and I offer 3 meals and 2 snacks per day. My 1500 sq ft home costs me $250/week, and the only rooms large enough to use for my daycare are the main living room and the largest secondary bedroom. That means a bit of stress, since I have to maintain those rooms for inspection at any time - NO FUN! Plus, my fairly small kitchen has to hold my groceries and all the dc food. And taxes are also an issue - I pay 15.3% SS/Med taxes because I am self employed, and I also lose another 10% in fed/state taxes even with all my deductions. I have to also pay employment taxes of 10% for my employees on their weekly combined wages of $480.
Earnings = $1500/week
Expenses = 480 + 200 + 250 + 229.5 + 150 + 48 = $1357.50
So now I have earned $142.50 for a 70+ hour work week, and I haven't paid my car note, my insurance bills, my food costs, or pretty much anything else except my mortgage. I have earned a grand total of around $2 an hour, and I have to live at work. Sign me the hell up NOW, because that's just exactly the life I aspire to!
Oh hell, I forgot the $50/week for the 5 year loan I had to take out to fully equip my home day care.
Now stop complaining about your pay. It's the competitive rate. If you are not smart or savvy enough to do this, then you really shouldn't be making more money.
Right. If this is such a great idea, maybe you should do it!
Anonymous wrote:I told my nanny we have a camera in the basement and for the rest of the year, she never ever went in there and brought all the toys and every single thing upstairs. We pay a lot of money for extra space that we never use.
I would advise against it. I personally think a camera is to gain trust in your nanny that she would treat your charges when no one is around, since you can not have a camera watching every move 100% of the time. If you disclose, the behavior changes and you don't know what she is doing to the kid when there is no camera.
A lot of nannies will tell you that you must disclose but I think this is their way of "winning" in a power struggle. Many will threaten to quit but the same people also complain about living paycheck to paycheck and needing guaranteed hours and such and I highly doubt that they would quit with no notice on the spot if they found a camera. I think if they were so difficult that they could not work under a camera, they'd have a hard time finding a job too, and they'd take months to find a new job while you'd have a replacement in 2 weeks.
I've worked for a handful of different companies, some very large. All of them had cameras. No one ever disclosed them to me, on HR orientation day or after.
Anonymous wrote:Anonymous wrote:Did she tell you she's bored?
I'm not paying her to sit around on her ass all day for that rare time I need her to watch my son when he's sick. All I'm asking for is ideas of things to make her do to justify paying her.
Anonymous wrote:Anonymous wrote:Our nanny works anywhere from 17-50hrs a week. I pay her a flat rate of $700/wk. Her "hourly" rate is $10/hr and all additional money is a weekly "bonus". No nanny would work my inconsistent hours at a regular hourly and I want a flat expense.
So it is okay to ignore the law when it stands in the way of something you want?
Anonymous wrote:The below us what everyone in major cities contracts up and then Breedlove or whatever direct deposit your weekly pay:
Goal: blended $18/hour for 50 hours, $900 weekly gross pay cheque
Equation:40hours*X + 10hours*1.5X = $18*50 = $900/week
Hourly wage X technically: $16.36
OT wage 1.5X technically: $24.50
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