Fair point Nick, but it is for sure more work and I want to recognise that.
I always do an annual review; only 3% last year and I expect similar this year. I usually check in with the agencies once a year and speak to colleagues/friends for benchmarking. I prefer to pay top quartile as top performer and I don't want her looking elsewhere!
But to follow that through logically, you would then presumably decrease her salary when your dd1 starts school - as then she'll be back to one child again for most of the day? Agree with Nick that you normally pay the nanny a fixed amount regardless of an increase in children (unless perhaps you'd had triplets in which case you might need two nannies anyway!)
Good point annh... while a nanny may love the idea of being paid more for caring for another child, they won't like being paid less once a child goes to school.
K75 - has your nanny actually raised the issue of wanting more pay to care for the new baby? Could a bonus at some point during the year be considered instead of a pay rise... such as a Thank you for seeing us through the first 3 months of babies life, kinda thing.
Your nanny's job will change. But I think she will just have different priorities rather than more work. For example, she might have less time for cooking because she is busy feeding a baby. She might have less time for laundry because she is tidying up baby toys. And so on. So be prepared to be a bit flexible on the standards upheld around the house. But, I wouldn't adjust the salary. There will still only be one of her. So she won't be able to do more work, assuming she doesn't spend half the day sitting around doing nothing now.
Thanks; think I might just combine with annual increase & additional responsibility. Gives me an excuse not to be so generous next year!
Good idea on the bonus Nick; I have already given her a gift for getting us through the first few months; she really went out of her way though; getting up in night to support no 1 after home birth etc.
Nick - no, she has not requested and I am sure she wouldn't but she also knows I always keep an eye on where the market is at and keep things favourable.
Athene - she does get a fair amount of down time (no 1 still has a v long nap and goes to pre school a few days a week); this will go!
Blondes - be interested to know what kind of increases you have had.