danaw wrote:I'm having a 3rd child in a few months and I pay my nanny $18.75 an hour for 40 hour weeks (M-Thurs) to watch my 6 year old (in kindergarten from 8:30 - 3) and a 2 year old. She gets every Federal holiday, 2 weeks vacation, 1 week sick, etc. We pay legally.
I was planning on increasing $1.25 per hour when the baby is here, bringing her to almost $20 an hour. She wants $2.50 an hour ($400 more a month!), which would bring her salary to nearly $21.50. I hired her 2.5 years ago at $16.50 -- and that turned out to not work for her so we negotiated at the year mark and I bumped her a lot because she is so good and been a nanny nearly 15 years. We didn't want to lose her.
As much as we love our nanny, we are beyond stretched and I simply can't go over the $1.25 increase.
My questions are: 1) Is this a reasonable increase (the $1.25)? 2) is her overall new salary, for 3 kids, at $20 gross in-line, too low, too high or just right? 3) am I wrong to think the add'l $2.50 is just an unreasonable request?
Thank you so much for any advise you can spare!
If you can't afford the sort of raise your nanny wants, you need to make that clear to her. Then she can choose whether to stay with you at the rate you can afford, or leave for another position.
1) Is this a reasonable increase (the $1.25)? It's about a 6.5% increase, which IMO is less than standard, but your finances mean you can't afford the "standard" new baby raise. She wants about a 13% raise, which isn't out of line if her employers can afford that raise. You can't.
2) is her overall new salary, for 3 kids, at $20 gross in-line, too low, too high or just right? She'll be making $800 a week. Do you pay her legally? If so, what is her net wage, and is it a livable wage? If you pay illegally, she's pocketing her gross wage each week, and has nothing to complain about, IMO.
3) am I wrong to think the add'l $2.50 is just an unreasonable request? Yes. It is not unreasonable to expect a hefty raise when a child is added to the family. However, your nanny needs to understand that you CAN NOT AFFORD to pay more than $20/hour, which makes her request unreasonable as long as she is working for you.
If you want to keep your nanny, it's time for a talk with her. As long as she is informed about your childcare budget, she can then make a decision as to whether she'll stay or leave. If, however, you are talking "poor" while redecorating/remodeling/traveling overseas, nanny will likely decide you just don't care to pay HER instead of buying fun stuff, and she will likely leave. Please note I am not saying nanny would be RIGHT to quit in that scenario, but the reality is nannies see where their employers $$ go, and if there are only minimal raises when there is excellent performance, and employers buy dozens of goodies and toys for themselves, human nature will kick in.
So, is your absolute wage ceiling $20/hour? IOW, is nanny going to need to know there will be no more raises after this? If so, be honest. Consider if you can add additional benefits that are low cost but greatly appreciated. And prepare for a new nanny search.