The Difference Between Hiring a Nanny with Guaranteed Hours vs. Salary
BY ELISE SILVER AND HEATHER RUSSELL
When hiring a nanny, understanding the differences between guaranteed hours and a salaried position is crucial. Each arrangement has its benefits, and choosing the right one can make a significant difference in both the nanny’s job satisfaction and the family’s household management.
What Are Guaranteed Hours?
Guaranteed hours mean that a nanny is assured payment for a set number of hours each week, regardless of whether those hours are fully worked. For example, if a nanny is guaranteed 40 hours per week but only works 35 hours, they still receive payment for the full 40 hours. This arrangement provides nannies with a stable and predictable income, fostering job security and financial stability.
Why Guaranteed Hours Are the Standard for Most Families
Guaranteed hours have become the standard in many nanny contracts because they offer both parties several advantages:
Stability for the Nanny: Nannies can rely on a consistent paycheck, which is essential for financial planning and security. Unlike many jobs, where hours may fluctuate, guaranteed hours ensure a steady income.
Commitment and Reliability: Families benefit from a nanny who is committed and reliable. When nannies have the assurance of guaranteed hours, they are more likely to be dependable and invested in their role.
Flexibility for Families: Even when the family’s schedule varies, the nanny remains available. This flexibility is particularly beneficial during school vacations, holidays, or unexpected events when the family’s needs might change.
Professionalism: Viewing nannying as a career, it’s important to recognize that most careers offer consistent income when employees block certain hours to work. Guaranteed hours elevate the profession, acknowledging that nannies are dedicated professionals who deserve stable compensation.
Tasks a Nanny Can Do When You’re Away
When families are away, a nanny with guaranteed hours can still be incredibly productive, performing various tasks to support the household. Some of these tasks include:
Organizing the Kids’ Playroom
Tidy Up and Organize Kids’ Closets
Stock Up on Groceries
Dogsit or Housesit
Update and Maintain Household Inventories
Prepare Meals for Your Return
For more detailed ideas, check out our previous blog, What a Nanny Can Do While You’re Away.
What Is a Salary Position?
A salaried position means a nanny is paid a fixed annual amount, divided into regular pay periods, regardless of the exact number of hours worked each week. While this also provides a stable income, it often implies an expectation of fluctuating work hours, including potentially working beyond the typical workweek without additional pay.
Why Salary Doesn’t Make Sense for the Nanny Profession
While not all families who offer a salary are trying to take advantage of their nanny, it’s important for nannies to be aware of potential pitfalls. Guaranteed hours and salary are not the same thing, and accepting a salary without understanding the details can lead to being underpaid.
If a family offers a salary, it’s crucial to break it down, factoring in applicable overtime, to ensure the base hourly rate is fair. This breakdown should be written into the contract. Some parents might highlight the “high” annual salary they are offering, but when divided by the actual hours worked, the hourly rate might be quite low.
Nannies, your hourly rate should not be less simply because a family needs you to work more hours. While it might be reasonable to adjust your rate slightly for a family you really like, remember that other professionals, such as lawyers, do not reduce their hourly rate when a case demands more hours. Nannies are classified as non-exempt hourly employees to ensure they are not overworked for inadequate pay.
How Guaranteed Hours Differ from a Salary Position
While both arrangements aim to provide financial stability, guaranteed hours offer a clearer boundary between work and personal time, as the nanny is compensated specifically for the agreed-upon hours. In contrast, a salaried position may require more flexibility in hours worked, which can sometimes lead to longer working hours without extra compensation.
Why Families and Nannies Might Choose Guaranteed Hours Over Salary
Clear Expectations: Guaranteed hours set clear expectations for both the family and the nanny, avoiding misunderstandings about workload and compensation.
Fair Compensation for Extra Work: With guaranteed hours, any work beyond the set hours can be compensated separately, ensuring fairness.
Work-Life Balance: Nannies can maintain a better work-life balance with guaranteed hours, knowing their personal time is respected.
While both guaranteed hours and salary positions offer unique benefits, many families find that guaranteed hours provide a fairer and more transparent arrangement, ensuring nannies are fairly compensated and valued for their professional dedication.
