Things To Consider When Giving Your Nanny A Bonus

No matter what industry you work in bonuses might be something you consider a standard. It may be something you look forward to during the holiday season. This is no different for nannies! Yearly bonuses are a standard expectation in the household staffing industry—in fact, 60% of households provide a yearly bonus for their nanny.  

Why Do Nannies Need Bonuses?

Why do nannies need a bonus? Well, first we should consider why bonuses are given in the first place, letting your nanny know you appreciate them is important, and bonuses increase work morale. That means your employee will be even more productive and motivated to do their job well. They are working with the ones you love most and those you hold dearest, so why not have your nanny be as happy as can be?  

In What Case Would You Not Provide a Bonus?

Providing your nanny with a bonus is typically customary if you are pleased with their work. Although there are a few reasons why you may opt out of providing a bonus. The first being that you were unhappy with how they have performed. In this situation, though, it’s important that you communicate this with your nanny. Nannies are often motivated to please the family they work for and will make an effort to improve in the future. 

Another reason may be that you may be too financially limited to provide them with a bonus. In this case, again, it is important to explain to your nanny why you cannot provide them with a bonus and that you still appreciate the work they do for you. Your nanny will most likely understand this.

Communication is Key

Explaining this to your nanny is important because they may expect year-end bonuses, and when they don’t receive one they may be confused. Not knowing whether it’s just a financial issue or lack of satisfaction in their work may lead them to dislike you, their employer. Whether you decide to give a bonus or not, communication is key in maintaining a beneficial relationship with your nanny, as it is with any employee in any line of work. 

How Much Is a Bonus for a Nanny?

How much, exactly, is a fair bonus pay for a nanny? The typical standard for this is two weeks pay. This, of course, is dependent on the family. Some families can afford to offer more if they are especially happy with their work, and some may not be able to afford the expected bonus standard. This is understandable, but your employee should know why their bonus is lesser (or not there at all), as to assure them it’s not a reflection on their performance. Nannies should know that bonuses are taxable—even though it may be a “gift”— it is still from your employer and considered income. 

Should Nannies Ask for Bonuses?

In concordance with the previously stated information, if you are a nanny, it is frowned upon to ask for a bonus. If you end up not receiving a bonus, your employer may not be familiar with the practice of bonuses or they may not be able to afford such an endeavor. With the next family you nanny, you can address this in your contract. You can simply say “Bonus can be offered at the family’s discernment”. This will insure that they are aware of the custom but that you do not expect it nor demand it.

Are you still in need of a nanny for your home? Contact Joanna Gray Agency today at 404-797-0072.