Help - Nanny pay increase? Yes or No? I need your views!

[LittleOneMum]

I have a truly wonderful nanny. She's been with us ten months now and looks after our DS (17 months). I live in central London and pay her £450 a week net. She's my first ever nanny and now it's coming up to the one year stage and I need to decide whether to increase her salary at that time. I'm not currently minded to, for the following reasons:
(1) I pay her for 52 weeks a year but give her ten weeks holiday (all paid) - two of them are her choice
(2) In return for the extra holiday her contract provides that I can ask her to babysit twice a month but I've asked her literally 3 times (and have always paid her extra for this)
(3) She works 8.15 to 5.30pm despite her contracted hours being longer; and
(4) I'm thinking of having another DC at some point in the next 12 months and would obviously put her salary up then and don't want to have to put it up twice

BUT I'm very keen to treat her like gold as she is fab and i don't want to annoy her at all. What should I do? Maybe I should take the babysitting clause out of the contract and agree always to pay her extra?

What is the fair thing to do? That's really what I am asking.

I would like to direct your attention here for a perspective on how people are whethering the storm in other industries.

"weather"
I meant weather!

Guys, thanks for all your comments, much appreciated. Will think some more.

and let us know the outcome of course

I wouldn't give her a payrise, very few employers are giving any payrises and I don't think you should be any different.

Are you getting a payrise?

Ewe - what does it matter what 'everyone else' is doing? We aren't sheep. You have to do what is best for ewe you and giving her a small payrise and keeping her a happy nanny might be the best option and to not do this 'because no one else is' would be cold comfort wouldn't it, when the OP finds herself looking for a new nanny....

I'm not saying she should - just that her decision should be based on other things - not what 'everyone' is doing.

I just can't imagine that anyone would be expecting a payrise in current conditions, we're in a recession and if the nanny has any sort of vague interest in current affairs I see it as unlikely that she will be expecting a payrise.

Whilst we aren't sheep there is a lot to be said for market conditions. I don't know about anyone else but I don't make a habit of increasing my outgoings just for the fun of it! It's an employers market and the OP has asked what is fair to do, IMO it is fair to keep her on the same pay for the same conditions - like the majority of the UK workforce.

My partner is in the construction industry, and although he has a well paid job, he has had to make sacrificed, like a tranfer, in order to keep his job. So in a current recession where you're considered very fortunate to have a job, I cannot think of a single employed person who would be expecting a payrise. I doubt many employees have received a payrise in the last two years.

Speak to your Nanny, explain that given the current situation, would she be prepared to accept a cost of living increase and to be reviewed again in 6 months?

Seems fair to me. She's bloody lucky to have work at the end of the day- and no doubt she'll already know this and won't be expecting anything.

Ewe - some people are still getting payrises actually. If the nanny has been lead to believe that she will get a raise then why should she think otherwise unless the OP or her DH have had significant changes to their income/lifestyle (ie been made redundant, taken pay cuts etc).

'We are in a recession' cannot become a stock answer (excuse) for people/employers who are in a position to pay more but choose not to (OP this is not aimed at you!!).

Yes, there is a lot to be said for market conditions, however, as I pointed out before (did you read my original post??), there are many reasons to consider giving this nanny an increase in pay, some are financial and some are not.

I don't know about anyone else but I don't make a habit of increasing my outgoings just for the fun of it!

No, but do you consider increasing your outgoings when you have more to gain than lose by doing so, or are you so blind that you blankly refuse to look at the alernative option????

The OP has asked what is fair to do, but none of us can acurately answer that as we do not have a copy of the contract or know what the nanny has been led to believe do we?! There is more to it than being in a damn recession!

The OP needs to think specifically about her situation. IF the nanny has been led to believe she is getting an annual payrise and IF she has not been told otherwise and IF the OP/her DH have not been made redundant/taken significant wage cuts then the nanny would be well within her rights to expect said wage rise. If she doesn't get one, she may decide to look around for another job and IF she finds another job pays better and leaves, then the OP has to find a new nanny she is equally happy with - not an easy thing to do and something which could be avoided by a small payrise....

Once again OP half of this is now not aimed at you - sorry, and without some of this information it is hard to know what is fair

Of course some people are still getting payrises, most however, aren't. I am not blind to alternatives either

I am not even saying that she should not give her nanny a payrise but that in the current market it is fair to not increase employees salaries. Of course there are lots of variables within this but without being privvy to conversations/the interview etc it's impossible to comment specifically.

With high rates of redundancy (up to half a million predicted this quarter) and one of the highest rates of unemployment in years - approaching 6.5% - IMO it is not reasonable to expect a payrise. The OP has already said that she will be putting her salary up should she go ahead and have a second child, I just don't think it is necessary to increase her salary prior to that.

I would take my chances on the nanny not leaving if her pay stays the same, it is by far the very worst case scenario and seems unlikely. I am not suggesting that is what the OP does however, she just asked what is fair and I stand by the fact it is in my opnion fair to not increase her salary.

The OP is on a forum, asking for opinions and that is mine, she will of course as an adult and the only person in possesion of all the facts make her own decision.

The OP has said she is currently minded not to give a payrise and I agree for all of the reasons stated above. Life would be boring if we all thought the same

Yes it would, wouldn't it - and especially MN

OK I promised I'd give an update and I will... Not sure what to do now... so need your help again!
OK, so to recap, lovely nanny, £450 a week, with at least 10 weeks holiday a year.

DH and I decided that we should offer her a bonus instead of a payrise but she has said that she wants £500 a week instead. Now, I need to know if this is reasonable - central London nanny, one child to look after, 8am to 5.30pm, five days, live out, 10 weeks holiday. Oh and she isn't very experienced - she had one job before us, for 2 years.

Help!

She is being unrewasonable and could not possibly expect to get that sum of money (based on her experience) in the current economic climate. Furthermore, nanny employers will be in the 1% of the population that were hit by the tax rises yesterday. I think the financial consequences will cascade to other services that they use, such as nanny salaries.

I just spat my diet coke on the screen

she wants £500 a week and she only has a total of about 3 years experience???
is she qualified?

as a nanny myself, I think she's having a laugh, sorry.

she'd be on about £12.50 gross an hour - is that correct?
that's an awful lot of money in this current climate for such cushty hours and one bubba!!

if I worked all week (I don't - I work 3 days a week ) I'd be on about £400 a week going by my part time pay and I have 8 years experience and I'm currently studying for an NVQ3
and I live in london so I'm fully aware of how expensive it is!

not sure how helpful my comment is but there you go!

Oh dear! Whilst I appreciate your nanny will have bills and a mortgage, I do think £500 nett a week is excessive in this economic climate especially for those hours and only one child and given the fact she's not hugely experienced. I'm sure there are plenty of experienced nannies who will be just as good and very happy with £450 a week.

I almost think you should call her bluff and say no, you can't afford that or alternatively give her the pay rise but cut her holiday down to 5 weeks.

At the end of the day it boils down to whether you can afford it, whether you feel she is worth and whether you want to pay it. Is she going to expect a similar pay rise next year? I think she's being a bit cheeky tbh.

She wants an 11% payrise? In this climate? Is she giving you any substantive evidence that she is so massively unpaid and that there are hundreds of similar jobs out there on that much more money that she could apply for? Thought not...

Pure greed I'm afraid. Those are amazing hours for a nanny, lots of holiday and a very generous salary especially considering her lack of experience.

Before having DS I had nearly 14 years of childcare experience and was working 7 - 7 (live out) in a 4 day Nanny share in Sw London with 3 children under 2 1/2. I was earning £11 net per hour which I considered very generous.

I know you say she's lovely and I'm sure she is but I agree with Wicked Witch that she's definitely having a laugh!

If you want to set your mind at rest, I would see what other nannies are getting - if you got her through an agency, I would ring them, or if you used a website, look at that. It sounds to me like you are paying at the top of the market, especially for those hours with only one child.

I assume from her 3 years nanny experience that she is pretty young? I would guess that the economic reality of what is going on has not really sunk in with her at the moment - it is bad enough for people like me who remember the last recession. I think she's being a bit naive.

I was thinking about an inflation increase for my nanny, who also started 10 months ago.

Hm. Real food for thought now. She is brilliant. I love her. But I thought I'd pay when £500 net when and if I had a second child and not before. She said that she would like £550 if we have two... I really don't think she is greedy, maybe this is just a negotiation tactic.

I can't cut her holidays: we are self-employed and we tend to take 8 weeks a year and then she has 2 of her choice over and above that.

£500 net a week for 48hrs a week - mmm nice money

I am a qualified childrens nurse and have always said if whatever reason got made redudant I would look into nannying full time and would look for a salary of £500 net a week for a 50hr week.

However I am very qualified and very experienced.

She only has 3yrs childcare experience and her salary should reflect this she should be on a salary of £350-£450 for a 48hr week so she is onto a good thing.

10wks holiday yes please - i know this is a job perk but still she is benefiting form this.

I would suggest you stick to your guns with a bonus and stick with the salary, if she doesnt want to there are lots of very experienced nannies who would snap up your job at £450 a week with 10wks annual leave.

Ask why she feels she warrants such a payrise, what has she done has she developed her skills, done any further training, provided anything in addition to her normal daily acitivities, gone the extra mile?

I'm sorry but nice nanny or not I think she is being a bit of a greedy cow myself!! She sounds to me like she has a very very cushy job!! Short hours for a nanny - a ton of holiday. Ok so she might only choose 2 weeks but I know I wouldn't say no to an extra 8 weeks even if I didn't get to choose them! she is already on a great salary particularly for her experience level and to ask for an increase of £50 in the current climate is outrageous.

I think you spoil her maybe a bit too much already by not sticking to the contract and making her babysit unpaid so now she is seeing how far she can push. If you give her this raise then she will just push you further. Nannies do like to be 'kept sweet' as it were with appreciation and rewards etc but she is expecting way too much. Most average payrises are £20-£30 a week tops and no she shouldn't expect an increase for an extra child. Nannies get paid per hour/day not per child.

If I were you I would give her an increase of £25 with the understanding that you appreciate her but you are not being taken for a mug. Believe me with a job like you are offering she would be a fool to leave you!

I have never heard of a nanny asking for extra money when another child comes along!

Thanks everyone. I will think about it and keep you updated. x

BLOODY HELL she wants £100 a day nett and has less then 3 years experience

she is seriously taking the piss, yes i expect and get a pay rise each year (due to what my contract says) but its generally 5% or less

and yes i earn what she wants but i have earned my way to that over 17years of sole charge nanny experience

she is asking for a salary that is suited to a much more qualified/exp nanny that she is

you have a few choices, to pay her that and she will prob expect the same next year, let alone if no 2 arrives (tho again i feel the same way as her, and I have always got a payrise when nb comes) and by end of next year she may be wanting £600 a week nett

or 2nd choice, say you are very happy with her, but you can not afford what she wants tbh you are the employer and you should decide what her pay increase is - and maybe give her £10/20 extra a week

3rd choice say firmly no, and see what she does

you could also godown the gross road, and give her a payrise but make sure it is gross and not nett

yes a good nanny is worth her weight in gold but for that salary you can get a lot more