We are often asked by our clients for some guidance on bonus and incentive pay norms for nanny employment. We are happy to share our experience and offer some guidance.
Some families offer their nanny an incentive payment or bonus at year's end. The most popular bonus is cash. All bonus payments are at the discretion of the employer, and the amounts will vary tremendously depending on the nanny's length of employment, overall performance, and the means of the employer. Bonuses generally reflect the family's appreciation for continuity of care for their child(ren) and recognition for a job well done. A bonus is not a substitute for an annual pay review.
HomeWork Solutions' finds that the average year end bonus is one - two weeks of pay. Long-term staff bonuses may be as high as one month's pay. A small personal gift from your child is also appreciated. Families also sometimes give additional paid vacation in lieu of a bonus (above the agreed on annual leave). Families who pay anniversary bonuses generally do not pay additional year end bonuses (bonus upon the employment anniversary date).
Other incentives include health club membership, airfare home, and payment for all or part of health insurance premiums. Nannies also report receiving gift cards to popular restaurants or day spas, flowers, and other expressions of appreciation. Remember, most bonuses and non-cash compensation (with the exception of health insurance premiums) are taxable income to the employee and should be reported as such.
posted by Kathleen Webb at
4:32 PM
3 Comments:
You may be surprised at what impact a bonus will make to your nanny's duration with your family. A birthday, 'nanny'versary, the holidays... it makes a huge difference to a nanny to feel like she really matters to a family and is kindly rewarded with a token of appreciation. Nannying has the all tricky element of working personally, yet professionally with people.... and a little extra goes a long way.
Many nannies site bonuses and the greatly apprecited 'thank-you' as the resoons some stay with their positions for longer than originally expected.
Some site cash to be the ultimate bonus, and others talk about how wonderful it was for her employer to detail her car for her out of the blue, or present her tickets to a popular show in the area.
Something is always better than nothing in this area.
Yes, I agree! DEFINITELY treat your nanny well and you'll feel great about doing so.
I've been a nanny for 5years. MY current family has given me two raises of 50 cents/6months. They also pay for major medical insur.
NOW for the not so fortunate.
When they are on a vacation I don't get paid at all.
I received $100 last x-mas
Nothing for my birthday.
and NO anniversary bonus.
Do you think it is too assertive to be forthright and ask for either???
thnx from Madison Wisconsin
Madison,
I do not think you are being too assertive in asking for vacation pay. They pay for your availability and it is not your fault they take vacations. Chances are, they are on a paid vacation themselves. I would let them know how much you enjoy working for them and appreciate what they do for you, but that it is standard for nannies to get paid vacations and that you can't afford to go unpaid while they are gone.
And YES!! TAKE CARE OF YOUR NANNIES!!! It really does make a huge difference in how valued I feel and makes me feel appreciated.
Kristin
Nanny in WA
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