Nanny Requested Large Pay Increase
Hi everyone - looking for advice on how to approach my nanny’s request for an increased rate and additional benefits.
For background, we very much love and value our nanny. She is incredible and like family to us, but with that being said, we are in a bit of an uncertain spot with our finances, my job and how much childcare we actually *want & need* going forward (truthfully, we don’t need the 40 hours we have).
We are located in Denver and have 3 kids under 4, including a set of twins. Our nanny started part time with my oldest, and then when my twins were born, she transitioned to full time to care for my toddler. Her rate was $30/hour which is on the average/high side for my market. When my twins got older, she started caring for everyone and we increased her rate to $34/hour. That was a little over a year ago so she is definitely due for a COL raise, however, she asked for $39/hour which feels like a huge increase and goes well beyond just COL. She also requested a monthly healthcare stipend. This would mean in less than 2 years a 30% rate increase plus additional pay for healthcare.
I’ve scoured forums in my area and it seems like we are either paying in line with or above what most people watching 3 toddlers are paying hourly. Which is fine with me but we cannot afford to tack on another $5/hour ($9,600/year) in childcare.
We provide all holidays paid, unlimited sick days and unlimited PTO. If she needs a day off she gets it 100% of the time. Responsibilities include light housekeeping (after the kids, not us) and the kids laundry but not a ton of house stuff beyond that.
I was a bit caught off guard by the request so just trying to gauge if my feelings are valid, if I’m in the wrong, or what I should be considering as an appropriate response.
We recently considered asking for a reduction in her hours because the cost of childcare is so expensive but haven’t done so because we know she relies on our employment as her income. My kids also totally adore her which makes it extra difficult.
We don’t want to lose her completely but cannot justify the request. What would you do?