Nannies, like any other employee, are entitled to regular, scheduled salary reviews and performance appraisals. Many families link the two, others strictly review salary on an annual basis and performance appraisals may be delivered more frequently. Regular review of performance and compensation sends the nanny the message that you view her as a professional, a valuable member of your family ‘team.’
Typically an annual wage review (or raise) takes two important items into consideration: merit and cost of living.
A merit review recognizes demonstrated job performance within the year being reviewed. The merit increase will be performance based and typically will run from 0 – 3% of wages with zero being the nanny that does the bare minimum and 3% being the nanny who is an outstanding performer, often exceeding the family’s expectations. The outstanding performer may straighten out the pantry and toss out of date staples without being asked, or may come to work with a new coloring book and crayons to entertain a charge she knows is not feeling well. These ‘extras’ are not part of the nanny’s job description.
A cost of living increase is more in line with inflation – both cost of living and in some instances inflation in area nanny salaries. These can be referred to as COLA adjustments, a term commonly used in government.
Put together, these two components will become the annual salary adjustment. An example might be a very good – but not outstanding – nanny would be considered for a 2% merit increase and a 3% cost of living increase for a total increase of 5%. We typically see annual increases in the 3% – 6% range, exclusive of increases when new children arrive in the household.
Salary increases should be given every year, or more frequently if agreed to in the written work agreement.
Salary Review with Change of DutiesA nanny is entitled to and will expect a salary review, with an increase, whenever duties are added to her job. This could be additional hours, a new baby, or added housekeeping responsibilities. Failure to acknowledge the change in the job duties with an appropriate salary action will often permanently sabotage the relationship. The typical increase for a new baby is $2 – 4 per hour (10 – 20%), or no less than $75 per week. |
Typically, the performance evaluation for a nanny is on a schedule. Experts recommend a formal evaluation of the new nanny at one month, and again at three months. The next evaluation is due one year from nanny’s anniversary date, with annual nanny performance reviews thereafter. Well before the performance review date, begin to prepare for the evaluation. The preparation process ideally involves review of the Nanny Log, holding a preliminary meeting with the nanny, and nanny preparation of a self-evaluation. In two-parent households, we recommend that BOTH parents be involved in this process.
The following steps are suggested when conducting a nanny performance review:
| Timely Feedback Performance evaluation time should not be the point at which you begin to document performance discrepancies or deal with performance problems. Families and nannies need to practice good communication skills on a daily basis and provide timely, accurate and specific feedback on a real time basis, not waiting for the once a year performance appraisal process. Ordinarily, no problems should be raised with the nanny during the evaluation that you have not previously discussed with her during the review period. |
