Mastering the Art of Nanny and Domestic Pay Negotiations for Candidates
You have found your next nanny or domestic role, and the family has shown intent to move forward in hiring you. Now, it is time to negotiate compensation and benefits. If you are going through an agency like Charlotte’s Best Nanny Agency, you have an agency team ready to help you navigate negotiating pay with the hiring family. If you are finding a position on your own, you may be independently negotiating the terms of your placement, including compensation and benefits. Whether you are looking for a position through an agency or independently, it is always good to understand how to master the art of negotiating a Nanny or Domestic compensation package. We have put together some useful tips that we feel will be helpful when navigating and negotiating your next compensation package.
Prepare Ahead of Time:
- Look at your expenses and determine how much you need to make to pay your bills and earn a livable wage.
- Keep taxes in mind. All nannies and domestic workers must be paid legally by W-2 payment. The rate offered will have taxes taken out of it. If you would like to see what your pay would be after taxes, do a payroll tax calculator like this one provided by GTM Payroll & HR Be aware of standard pay rates and benefits in the industry. Stay current on the standard nanny and domestic pay in the industry and the area you work in. Here is the standard pay for Charlotte and the Carolinas.
- Ensure that you consider all benefits offered in addition to the hourly pay. The standard nanny and domestic benefits are continued pay while the family is away, paid time off, paid sick days, paid major holidays, paid mileage, and an annual performance-based bonus. Some families also are able to offer additional benefits such as a Health stipend (One of the best ways to receive a health stipend in this industry is through a QSEHRA as the money is paid pre-tax for you and the family), 401-k, per diems when traveling, and other benefits.
Negotiating:
- Let the family make the first offer and then work from there. Consider: Is this offer within the advertised range? Is this pay within the industry’s standard rates? Will this pay rate provide me with livable pay?
- Take into consideration overtime pay. Does the position come with overtime hours? Hours worked over 40 hours in a week are legally required to be paid at a rate of 1.5 times the regular pay rate. The extra overtime pay can add up if you have consistent overtime each week. Please keep this in mind when negotiating a pay rate.
- Understand the pay range offered. Many families will set a pay range when advertising their positions. Please understand that this pay range takes into consideration expertise and experience level. You are not always going to make the highest rate in the range. So, make sure that you are looking at the range and asking for a rate commensurate with your experience and expertise within that range.
- Also, understand that if there is a single rate posted, the family is firm at that rate, and sometimes negotiable a dollar or two.
- Do not ask for a rate outside the range given unless you feel that your experience and expertise exceed what the family is looking for.
- Understand that in most professional nanny and domestic roles, an annual performance-based bonus is given during the December holiday period of about 1 – 4 weeks of pay, depending on experience and longevity, and a yearly raise of 3 – 6 % is given each year. Keep this in mind when negotiating pay, as your compensation should increase over time. If the family wants to hire you long-term, they will consider this when offering a pay rate. It is important that there is room to grow from the initial pay rate offered and room for bonuses to be paid.
- Consider how many children you will be caring for and what your responsibilities will be. Ensure that the pay rate matches the level of work you will be expected to perform.
- Make a counter offer if needed. If the family’s initial offer does not meet your expectations, do not get discouraged; you can always respectfully make a counter offer in response to the initial offer. Just be prepared for the family to agree to your counter or come back and let you know that they cannot meet your offer. Through the counter offer process, try to be understanding and flexible with the family.
Finalizing the Agreement and Transitioning into a New Position:
- Once you have accepted an offer, ensure you have a written work agreement. This agreement should outline expectations, responsibilities, hours, pay, benefits, raises, bonus structure, and other important details before you start the position.
- Do not give your notice to your current family until you have signed a work agreement with the new family. Always ensure you have signed a work agreement with the new family before giving your notice. You want to ensure everything is agreed upon in writing before making the official leap and giving your notice to your current family.
We hope these tips help you master the art of navigating compensation and benefit negotiations for your next nanny or domestic position. If you have any questions or need any guidance on mastering the art of negotiating your next nanny or domestic compensation package, feel free to reach out to our team at Charlotte’s Best Nanny Agency anytime at 980-292-1045 or email us at nannies@charlottesbestnanny.com
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