Anonymous wrote:We are going to be hiring a full time nanny/housekeeper early this summer because both our kids will be in school full time. The job will be 50 hours most weeks but I would like to only guarantee 40 hours per week for 52 weeks per year. Is that appropriate?
There are 2 issues with this plan:
1) If you ask your employee to be available for only 40 hours, what will you do when she is NOT available, due to her own plans, for the additional 10 hours a week that you need?
IMO, you are far better off to reserve her time for 50 hours per week if you already KNOW you'll need her that many hours most weeks. Then your N/HK will know her time is reserved for you, and will not make plans that lead to either YOU being angry because she won't work the additional 10 hours you truly need, or HER being angry because you constantly ask her to stay late and she always has plans she winds up canceling.
2) If you are offering a job for 40 hours per week, you'll need to pay a bit more per hour to make your pay generally competitive. That means that when you have to pay OT for your 10 OT hours, IF your employee can work them, your OT rate will be higher.
You are seeking someone fairly rare, a person with the skill set to clean your home AND the skill set to care for your school age kids properly. Most nannies don't choose to be housekeepers, and many housekeepers are either unwilling or unable to be nannies. So you've limited your applicant pool right off the bat. In addition, many people who offer multiple skills to their employers are not willing to even consider wages below a certain level.
Although many people here will argue that "market drives rates", if a job doesn't offer a wage that is considered livable (IOW, could you like on what you want to pay your N/HK?), many candidates will assume you wouldn't offer more to an excellent candidate, and they won't bother responding to your ad. The OT situation plays into it as well here.
Two potential ads for you - which one says "stable job and good pay" to you?
1)
Nanny/HK needed, minimum 40 hours/week, with likely OT almost every week. Guaranteed pay rate will range between $450 - $500 per week, based on experience and OT will be paid as needed.
or
2)
Nanny/HK needed, guaranteed 50 hours per week. Pay rate will range from $650 - $700 per week DOE.
For ad #1, your straight rate is now maximum $12.50/hour. That means your OT rate is maximum $18.25/hour. Assuming you'll need all that OT 48 weeks of the year, you'll pay N/HK $682.50 48 weeks a year, and $500 4 weeks a year, or a grand total of $34,760/year.
BUT, your candidates will just see $12.50/hour with maybe, possibly, perhaps, some OT. Many household employees don't calculate OT, they just divide pay by hours.
For ad #2, working backwards from $700 for 50 hours, your straight rate is $12.72/hour and your OT rate is $19.08. That means you'll pay a grand total of $36,400/year.
BUT, your candidates will see a job at $14/hour.
So for an additional $1640 per year, you get all the hours you truly need without angst about nanny having other plans AND you get candidates who wouldn't reply to ad #1 applying to ad#2.