Your Role as an Employer and Understanding Job Incentives

A lot of people want to know what expenses they need to cover for a nanny and what perks (if any) they need to provide to them. I frequently hear a range of opinions over whether families should be required to provide perks. I’m going to start this post with my take on this whole conundrum of a debate, and finish it with some practical information. 

I’ll start by saying that I think sometimes people lose sight of the fact that a nanny, although working in your home, is an employee like any other, so they absolutely have the right to set standards and expectations when it comes to their work, and to negotiate as they see fit during the hiring stages. It is also conceivable, that like any job, a nanny may accept a job offer, and after working for a family for some time, they may try to negotiate a wage increase or additional perks. I know I personally have tried to negotiate things like health insurance, parking, and more vacation time when I’ve renewed a contract with an employer.

When you choose to hire a nanny, you are choosing to take on the role of employer. It is a role that requires you (for a moment) to put aside your feelings of “but we can barely afford this; we’re a middle class family, we’re not rich!” (or some version of this which many of us feel from time to time) and consider for a moment that this is not really the nanny’s problem. Being an employer should not be taken lightly. When it is, it leads to poor communication, and a lack of clarity, which leads to an unhappy nanny, and an unhappy family. If taking on this role doesn’t sit well with you, then you may want to think about considering other forms of childcare. Daycare, for example, positions you as the client, rather than the employer. I’m not suggesting that you should suddenly feel nervous about becoming an employer if you have no prior experience because all of the skills required to do a good job can be learned, and lot of the learning will happen through lived-experience, but you do need to acknowledge this role. 

When I hear families complain that nannies are “demanding” extraordinary perks, it makes me question whether or not that family really understands the context of hiring a nanny. You need to be a savvy employer. If providing perks isn’t an option for you because you’re not comfortable with them, or don’t have the budget, then you need to consider other ways to make the job more appealing. What other benefits can you offer and how do you manage the relationship, and your employee so that they are happy and fulfilled in their job? You basically need to think about how to prevent employee turnover. There is always a risk that a nanny could come work for you, decide to ask for a higher wage or more perks and leave when you turn them down. You need to consider this right from the outset. How are you screening for long-term job commitment in your interviews? What other benefits are you providing? In our household, we feel confident that we have a lot of fun as a family and will welcome our nanny to be part of this fun. We will go out of our way to make her feel appreciated and demonstrate our gratitude, and we hope that this in turn will increase her job satisfaction. We have been upfront from the very beginning about expectations and fit with our family, and we hope that this will prevent any unforeseen confusion.

The truth is that hiring a nanny is an extremely fine balance; you want to welcome them into your home as part of your family and build a lasting and trusting relationship with them, but you also need to manage them in their role (when it comes to tasks, concerns, or discrepancies), as well as manage the business side of things (payment, CRA remittance etc). My husband and I were landlords for over five years, and in that time we honed the balance of a similar relationship. We screened tenants for fit. We liked having tenants who would create a community feel around our home; we would go for coffees together, share in a meal, or help them out when needed. It is a similar sort of relationship that requires the balance of the personal, and business side of things.

So when it comes to putting together a job package, how do you know what should be covered and what additional incentives to offer?

Standard expenses/things that are provided to a live-out nanny include:

•  Food while they’re with your child(ren),

•  A wage of $14-17/hr,

•  Vacation (4% of pay or two weeks), and

•  Paid sick days (the number is at your discretion). 

Incentives for a live-out nanny may include:

•  Covering a portion of their cellphone bill (for communication with you),

•  Internet use in your home (for during a break while the child naps, for example), and/or

•  Transportation costs incurred traveling to/from work (a TTC Metropass, for example). 

Standard expenses/things that are provided to a live-in nanny include:

•  A furnished bedroom,

•  Food (including meals at home, and/or restaurant meals when you choose to eat out),

•  A wage of $11/hr,

•  Vacation (4% of pay or two weeks)

•  Paid sick days (the number is at your discretion),

•  Transportation costs that are incurred while looking after your child, and

•  Internet access at home (assuming your family has internet).

Incentives for a live-in nanny may include:

•  Transportation costs for personal time (a TTC Metropass, for example),

•  Petty cash allowance,

•  Additional sick days or vacation time,

•  Cable TV,

•  Access to a personal computer,

•  A cell phone, and/or

•  Above average accommodations such as a bedroom with ensuite or a nanny suite (private kitchen, bathroom etc.)

Your location is also perceived as a perk or deterrent. It’s important to keep in mind that nannies work for all sorts of families and households; from families who live in sprawling estates to those who live in tiny urbanite apartments and condos, so it’s really about figuring out what you’re comfortable offering someone and what you feel is fair, then doing your due diligence throughout the hiring process to screen for fit, and tossing a bit of faith into the mix.

So what’s our situation (as an example) you might ask?...

•  We live in a pedestrian friendly urban neighbourhood,

•  We live in a cozy two-bedroom bungalow,

•  We will pay $11/hr,

•  We will provide a TTC allowance of 6 tokens per month (about $20),

•  The nanny will have a bedroom in the basement that is nicely furnished (and we are working on lots of DIY projects to totally customize it to be a warm, welcoming room).

•  We will put a flat screen TV (need to purchase one) with Netflix in the nanny’s bedroom,

•  As well as a computer (we repurposed an old one) with internet,

•  She will have access to a semi-private bathroom and kitchen (second bathroom and second kitchen in basement, so we may use from time to time, but mostly hers),

•  We offered 3 weeks (not two) of vacation,

•  As well as 10 paid sick days, and

•  Above everything, we are a genuine, warm, and community-oriented family who is going to welcome her into our home as family.

I hope this post has shed light on my (hopefully helpful) perspective on this topic, as well as provided you with some clarity around the “going rate” for hiring a nanny.