As families grapple with further financial straits, our annual nanny pay survey by Tracey Kneale of payroll service Nannytax reveals the value of taking a more flexible approach to working
With the coalition government proposing austerity measures in many areas of the economy, belt-tightening looks set to continue for some time yet. This time last year, the annual Nannytax Wages Survey had shown nanny salaries across the board to have a reasonably healthy increase on 2009, indicating recovery for salaries.
However, this year 60 per cent of agencies believe there was no significant change in 2011 salaries on 2010 and comments from the survey have a common theme: ‘Salaries have definitely decreased or frozen given the economic climate’ . . . ‘No massive change, however, the hours are longer and the perks are less’. . . ‘A bit of frustration from the nannies but general understanding due to the economic situation of the country’.
Despite the gloomy perceptions, it’s not all bad for the nanny industry as salary figures are actually showing reasonable increases for nannies regardless of the economic climate. Our survey has also shown that part-time nannies are on the increase and are high in demand, possibly indicating that while nanny employers may be cutting back they do not want to compromise on the bespoke childcare only a nanny can provide.
There is also demand for the nanny who can bring additional skills, such as fluency in a second language (40 per cent of agencies) and being able to coach in academic subjects such as English and Maths (30 per cent).
By far and away the most frequently requested ‘additional skill’ is being able to teach creative skills, arts, crafts and painting - over 70 per cent of agencies saying this is frequently requested. This was also the most popular answer with nanny employers, with over 20 per cent stating they request creative skills from their nanny.
48 per cent of the agencies that responded indicated that full-time daily nannies could be expected to work 40 to 50 hours per week and 44 per cent said 50 to 60 hours per week. So what are they earning for the hours they are putting in?
Live-out nannies in 2010 across Central London were earning an annual gross of £34,127 (£490 net per week). At the end of 2011 the same nannies were earning an annual gross of £34,516 (£497 net per week) showing a salary increase of 1.41 per cent on the previous year. Not huge but an increase none-the-less.
In Outer London and the Home Counties, live-out nannies haven’t fared so well: 2011’s annual gross of £28,713 (£421 net per week) shows a 0.11 per cent decrease on 2010’s £29,009 (£422 net per week).
Other Areas across the UK have shown a healthier result: In 2010 live-out nannies had been earning an annual gross of £24,877 (£360 net per week). As 2011 closed our survey showed they were earning an annual gross of £25,877 (£384 net per week) rising by 6.68 per cent on the previous year.
Outer London and Home Counties showed a similar increase. In 2010 nannies in these areas earned an annual gross of £22,523 (£336 net per week). 2011 brought them a 4.98% increase with an annual gross of £23,513 (£353 net per week).
The most dramatic change is for live-in nannies in Other Areas of the UK: In 2010 these nannies earned an annual gross of £18,527 (£283 net per week) but the end of 2011 our survey indicates they were earning an annual gross of £21,291 (£324 net per week) – up 14.60 per cent. Finally for full-time live-in nannies, 52% of agencies stated that they can be expected to work 50 to 60 hours per week.
Also high in demand are before-and-after school nannies, although agencies also say these types of requests are the most difficult positions to fill.
Elizabeth Rackow of After School Nannies in South West London believes the demand is indicative of the economic climate and the increasing financial pressure on mothers to return to work. While some before-and-after school clubs are available as well as other wrap-around care, many children find it difficult not being able to come home until much later in the day.
Elizabeth says, ‘It’s a lot to expect from a child, five days a week. They can feel like they are still at school long after the school day has finished and may not be sufficiently fed until they get home after 5 or 6pm, after not eating properly since around 12.30. Soon after that they may have to go to bed – there’s little separation.’
She adds that experienced, professional nannies are reluctant to work for so few hours a day during term-time even if it means working full days for the family during the school holidays. It’s a very tricky area of the industry and one that Elizabeth believes paints a much bigger social issue.
So why has our agency survey shown that nanny share positions are the least in demand? The answer may lie in another question: What constitutes a nanny share? The simple answer is that a nanny share is when two or more families employ the same nanny.
Louise Taylor explains that Kensington Nannies has a very clear definition: The nanny cares for all the children in one location at the same time. She adds that this type of position rarely works on a long-term basis. ‘Circumstances changing may mean that one family no longer needs the nanny, or the parents have different parenting styles from each other causing conflict. Just placing a nanny that is a suitable match for both families can be challenging.’
Louise also believes that the nannies themselves are not always so keen to enter into a share. ‘It’s always going to be harder to please two families rather than one. For example, simply trying to arrange time-off can often be very difficult. A week agreed with one family may not be suitable with the other and because of this the nanny may find she cannot take a chunk of time off in one go.’
The nanny working on separate days of the week for each family is also considered a share – but often only if the families know each other and have made the arrangement together.
Justin Jeffries at Nannyshare.co.uk believes it’s down to the arrangement and contract: ‘When two families employ a nanny, each knowing about the other, they enter into a formal employment arrangement not only with the nanny but with each other. This really defines the share.’
Hayley Rathbone, payroll consultant for nanny shares here at Nannytax says, ‘We generally consider a nanny working for two or more employers to be in a share whether they know each other or not. There are all sorts of payroll issues to consider when a nanny has more than one job that concerns all employers involved, so from a tax perspective she is being shared.’
So, nanny shares are the least in demand, but the part-time nanny is the most in demand. It’s difficult to conclude exactly what constitutes a nanny share. It really comes down to the employers, the nanny’s working arrangements and how contracts are defined. Despite any complications that can come with a share, it is still a very cost efficient way of procuring flexible childcare, particularly if the families have more than one child each.
Nanny agencies should also be reassured: many nanny employers would still employ the services of a nanny agency to help them find their nanny, ‘a nanny agency’ being the most popular answer at 44 per cent when asked how they would find a new nanny. It may only be a crumb of comfort but it does go a little way to negating some concerns that the continuing power of the Internet and the rise of sites such as Gumtree threaten our nanny agencies and the standard of nannies in the industry.
This year’s survey has shown that’s it’s all about ‘added value’ – a common theme throughout the economy and the nanny industry really is no exception. As always, flexibility is a key asset – the nanny who accepts that the dream full-time position may be slightly elusive (certainly for the time being), and is willing to take on two or even three positions to make up the working week, will be at an advantage.
And the nanny who can offer additional skills such as arts and crafts, languages, musical talents and even sports such as horse-riding and skiing will be far more valuable to her employer than the one who just does childcare. The more the nanny brings to the childcare table, the more she can expect to become part of every family she works for – and then she can really shine.
All percentages have been taken from the 95 nanny agencies and 1244 nanny employers who completed the 2011 Nannytax Wages Survey.
However, this year 60 per cent of agencies believe there was no significant change in 2011 salaries on 2010 and comments from the survey have a common theme: ‘Salaries have definitely decreased or frozen given the economic climate’ . . . ‘No massive change, however, the hours are longer and the perks are less’. . . ‘A bit of frustration from the nannies but general understanding due to the economic situation of the country’.
Despite the gloomy perceptions, it’s not all bad for the nanny industry as salary figures are actually showing reasonable increases for nannies regardless of the economic climate. Our survey has also shown that part-time nannies are on the increase and are high in demand, possibly indicating that while nanny employers may be cutting back they do not want to compromise on the bespoke childcare only a nanny can provide.
There is also demand for the nanny who can bring additional skills, such as fluency in a second language (40 per cent of agencies) and being able to coach in academic subjects such as English and Maths (30 per cent).
By far and away the most frequently requested ‘additional skill’ is being able to teach creative skills, arts, crafts and painting - over 70 per cent of agencies saying this is frequently requested. This was also the most popular answer with nanny employers, with over 20 per cent stating they request creative skills from their nanny.
Live-out/daily nannies
48 per cent of the agencies that responded indicated that full-time daily nannies could be expected to work 40 to 50 hours per week and 44 per cent said 50 to 60 hours per week. So what are they earning for the hours they are putting in?
Live-out nannies in 2010 across Central London were earning an annual gross of £34,127 (£490 net per week). At the end of 2011 the same nannies were earning an annual gross of £34,516 (£497 net per week) showing a salary increase of 1.41 per cent on the previous year. Not huge but an increase none-the-less.
In Outer London and the Home Counties, live-out nannies haven’t fared so well: 2011’s annual gross of £28,713 (£421 net per week) shows a 0.11 per cent decrease on 2010’s £29,009 (£422 net per week).
Other Areas across the UK have shown a healthier result: In 2010 live-out nannies had been earning an annual gross of £24,877 (£360 net per week). As 2011 closed our survey showed they were earning an annual gross of £25,877 (£384 net per week) rising by 6.68 per cent on the previous year.
Live-in nannies
Live-in nannies in 2011 showed a consistent picture, with Central London live-in nannies earning an annual gross of £26,870 (£397 net per week) – a 4.28 per cent increase on 2010’s £25,842 (£380 net per week).Outer London and Home Counties showed a similar increase. In 2010 nannies in these areas earned an annual gross of £22,523 (£336 net per week). 2011 brought them a 4.98% increase with an annual gross of £23,513 (£353 net per week).
The most dramatic change is for live-in nannies in Other Areas of the UK: In 2010 these nannies earned an annual gross of £18,527 (£283 net per week) but the end of 2011 our survey indicates they were earning an annual gross of £21,291 (£324 net per week) – up 14.60 per cent. Finally for full-time live-in nannies, 52% of agencies stated that they can be expected to work 50 to 60 hours per week.
Part-time nannies
As the economy remains in a state of belt-tightening and families look to save where they can while trying not to compromise on childcare, perhaps it’s no surprise that our survey showed part-time nannies to be the most in demand from nanny agencies. Nanny employers echoed this with 57 per cent stating their nanny works for them on a part-time basis.Also high in demand are before-and-after school nannies, although agencies also say these types of requests are the most difficult positions to fill.
Elizabeth Rackow of After School Nannies in South West London believes the demand is indicative of the economic climate and the increasing financial pressure on mothers to return to work. While some before-and-after school clubs are available as well as other wrap-around care, many children find it difficult not being able to come home until much later in the day.
Elizabeth says, ‘It’s a lot to expect from a child, five days a week. They can feel like they are still at school long after the school day has finished and may not be sufficiently fed until they get home after 5 or 6pm, after not eating properly since around 12.30. Soon after that they may have to go to bed – there’s little separation.’
She adds that experienced, professional nannies are reluctant to work for so few hours a day during term-time even if it means working full days for the family during the school holidays. It’s a very tricky area of the industry and one that Elizabeth believes paints a much bigger social issue.
Nanny shares
Despite our Nannytax nanny shares department becoming increasingly busier, our survey has shown very little movement in nanny shares since last year, both from agencies and nanny employers. However, Nannyshare.co.uk, a website dedicated to introducing nanny employers in the same area and helping them to find a nanny, has indicated an increase in their registrations since 2010.So why has our agency survey shown that nanny share positions are the least in demand? The answer may lie in another question: What constitutes a nanny share? The simple answer is that a nanny share is when two or more families employ the same nanny.
Louise Taylor explains that Kensington Nannies has a very clear definition: The nanny cares for all the children in one location at the same time. She adds that this type of position rarely works on a long-term basis. ‘Circumstances changing may mean that one family no longer needs the nanny, or the parents have different parenting styles from each other causing conflict. Just placing a nanny that is a suitable match for both families can be challenging.’
Louise also believes that the nannies themselves are not always so keen to enter into a share. ‘It’s always going to be harder to please two families rather than one. For example, simply trying to arrange time-off can often be very difficult. A week agreed with one family may not be suitable with the other and because of this the nanny may find she cannot take a chunk of time off in one go.’
The nanny working on separate days of the week for each family is also considered a share – but often only if the families know each other and have made the arrangement together.
Justin Jeffries at Nannyshare.co.uk believes it’s down to the arrangement and contract: ‘When two families employ a nanny, each knowing about the other, they enter into a formal employment arrangement not only with the nanny but with each other. This really defines the share.’
Hayley Rathbone, payroll consultant for nanny shares here at Nannytax says, ‘We generally consider a nanny working for two or more employers to be in a share whether they know each other or not. There are all sorts of payroll issues to consider when a nanny has more than one job that concerns all employers involved, so from a tax perspective she is being shared.’
So, nanny shares are the least in demand, but the part-time nanny is the most in demand. It’s difficult to conclude exactly what constitutes a nanny share. It really comes down to the employers, the nanny’s working arrangements and how contracts are defined. Despite any complications that can come with a share, it is still a very cost efficient way of procuring flexible childcare, particularly if the families have more than one child each.
The coming 12 months
So what can nannies expect for the rest of 2012? Despite the state of the economy, nannies should be assured that they are highly valued amongst the families who employ them. Over 69per cent of nanny employers consider their nanny to be a trusted family associate, with over 27 per cent saying they would find it very difficult to replace her. Survey comments include "can’t imagine life without her" . . . "the children love her" . . . "would be very sad to see her go and we’d try our hardest to keep her".Nanny agencies should also be reassured: many nanny employers would still employ the services of a nanny agency to help them find their nanny, ‘a nanny agency’ being the most popular answer at 44 per cent when asked how they would find a new nanny. It may only be a crumb of comfort but it does go a little way to negating some concerns that the continuing power of the Internet and the rise of sites such as Gumtree threaten our nanny agencies and the standard of nannies in the industry.
This year’s survey has shown that’s it’s all about ‘added value’ – a common theme throughout the economy and the nanny industry really is no exception. As always, flexibility is a key asset – the nanny who accepts that the dream full-time position may be slightly elusive (certainly for the time being), and is willing to take on two or even three positions to make up the working week, will be at an advantage.
And the nanny who can offer additional skills such as arts and crafts, languages, musical talents and even sports such as horse-riding and skiing will be far more valuable to her employer than the one who just does childcare. The more the nanny brings to the childcare table, the more she can expect to become part of every family she works for – and then she can really shine.
All percentages have been taken from the 95 nanny agencies and 1244 nanny employers who completed the 2011 Nannytax Wages Survey.
