How do you find/which agencies do people recommend for finding a good nanny?
A local one. Spend time talking to the recruitment consultant making sure they fully understand your needs.
Also, how do people check up on nannies? Is it merely a question of trusting the nanny or do people have cameras/monitors in their homes?
The relationship is built on trust. You interview them well and check references even if the agency has already done so. You trust your gut feelings. Have open lines of communication so that you can both feedback any concerns quickly, so small matters don't become big issues. Use technology - very easy now to share photos, online calendars so you can keep up to date with what activities they may be attending with your child. Avoid the use of CCTV, you may watch it more than doing your work. You need to focus on working whilst at work, you need to trust your nanny to care for your child. CCTV can be useful for the nanny as a way of showing what really happened when little one gets a bump when toddling but hidden cameras is not good for building trust in my view. If you have a camera, then make sure job applicants know about that and that the camera system is very visual, not hidden.
Interview Tips thread from the Nanny board.
Anxiety about leaving a child in the care of someone else is normal but you don't mention about nursery having cameras, yet there have been several abuse cases at nurseries - there is not safety in numbers! You can't check out all the staff, you rely on the nursery. At least with a nanny you can do some reference checking.
A nanny to care for one child is a huge cost. Why is using the service of a local childminder not a consideration? They care for less children than a nursery, provide a homely environment, consistency of carer and is lower cost then a nanny as you are sharing with other families. Your local authority Family Information Service can provide you with a list of local Registered Childminders.
I agree about sickness, as a nanny I have very very very rarely had time off sick - I can't recall when it happened, not even sure it has happened during the past 13 years that I have been regularly working as a nanny. Children though do pick up illness from other children, they tend to build up their immune system fairly quickly but it can mean that the first few months involve quite a bit of time off from nursery.