Anonymous wrote:"If you want to hire master service person X, who has X established hourly rates, do you say, "I don't need all of your expertise, so I'll pay you only half of your regular rates."
"
yeah, actually we do that all the time in my job. Technically the law firm agrees to cap the fees and do the project for a specified fixed cost. They like to tally up the actual hours at the end to show us what a deal we got. The reality is that we would not be willing to pay the full rate for those lawyers that they would normally change which is why we asked "Would you be willing to do the project for $X?" rather than simply hiring them at their full rate or declining to work with them since they are too expensive. Normally, the firms accept.
So "bartering" as you like to call it, PP, is not unheard of in the regular business world.
But I am reasonably sure that you are bartering to lower a legal cost from 50K to 45K, or something along those lines. I am guessing no lawyer works for $20/hour and is willing to drop their hourly rate by 20% to $16/hour.
OP, if your concern is that nanny will somehow be getting away with being paid more than she is worth, you could always hire a pretty crummy nanny and pay her as little as possible.
If, on the other hand, you are genuinely wishing to leave room for yearly raises and bonuses when you decide on a starting hourly rate, only you know your budget and what you are willing to pay for childcare. I do suggest that you just add a dollar or two to the hourly for the baby and pay it year round to cover times your older child is in need of care. Nannies are often turned off by the idea that they have to track hours with 2 kids to determine how much "extra" they get paid. This is especially true if your child will be in need of FT care over the summer. Haggling and bargaining often makes nannies believe you are cheap.
So if you want to/can afford to pay $18/hour and still have room for raises and bonuses, pay $18/hour.