How to Conduct a Yearly Performance Review and Renew Your Nanny-Family Contract
As you approach the one-year mark of employing your nanny, it’s a great time to reflect on your family’s needs and evaluate if your nanny’s role has changed and whether an update to your contract is in order! Whether this is your first time working with a nanny or you’ve been through the process before, conducting a performance review and renewing your nanny-family contract are essential steps in maintaining a good working relationship. Below are some key things to consider.
1. Conduct a Thoughtful Performance Review
A nanny’s role in your family is unique; it’s more personal and intimate than many jobs. That’s why a formal performance review, while professional, should also consider the personal nature of caregiving. Below is a list of what we suggest considering during the performance review.
Areas to Evaluate:
Childcare Responsibilities: Reflect on how well your nanny has managed the day-to-day responsibilities of caring for your child(ren). Are they following routines and schedules? Have they helped with developmental milestones?
Communication: Open and effective communication between you and your nanny is crucial. Has your nanny been proactive in discussing any issues or changes? Are they easy to get ahold of during the day if you need to check in and responsive to communication during working hours?
Flexibility and Adaptability: Life with kids can be unpredictable and ever changing. Has your nanny shown the flexibility needed to handle changes, whether it’s adjusting to a new school schedule or taking on additional responsibilities?
Punctuality and Reliability: This is one of the top qualities that families prioritize. Is your nanny punctual, reliable, and able to handle your family’s needs?
Emotional Connection with Your Child(ren): This might be the most important aspect of a nanny’s role. Has your nanny formed a strong bond with your child(ren)? Are your kids happy and comfortable with them?
Positivity Within Your Community: Your nanny is essentially representing your family within your community. Do they have a positive relationship with other family members (grandparents, aunts and uncles) and other people within your community such as teachers, coaches, tutors, etc?
Create a Safe Space for Discussion
Make sure the performance review feels like a two-way conversation for both you and your nanny. Allow your nanny to share their thoughts, discuss challenges they’ve faced, and suggest changes that could benefit both them and your family. Be open to their suggestions and ideas.
2. Review Compensation and Benefits
At the one-year mark, it's a great time to assess your nanny’s compensation. Consider the following:
Wage Adjustments: Have there been any changes in your nanny’s responsibilities? A raise or bonus may be appropriate, especially if your nanny has exceeded expectations. As a general rule of thumb, a yearly cost of living rase of 3-5% is standard. If your nanny has excelled and you’d like to recognize their hard work, the high end of this range (or beyond!) may be appropriate. An end of year bonus is another way to express gratitude for a job well done.
If you have employed your nanny for several years, there may have been a shift in nanny rates since you first hired them. You are always welcome to reach out with your placement provider with Your Happy Nest and we would be happy to advise you on current going rates.
Health and Retirement Benefits: If these weren’t part of your initial contract, it could be an added benefit for your nanny to consider. To learn more about how to offer Healthcare Benefits to a household employee such as a nanny, our partner GTM Payroll Solution has a great article with more information.
Paid Time Off (PTO): Review the vacation, sick days, and holidays offered. Are they fair and comparable to industry standards? We are happy to advise you on this at Your Happy Nest at any time!
3. Renewing or Revisiting the Nanny-Family Contract
A nanny-family contract outlines expectations, responsibilities, and boundaries. After a year, it’s important to review and potentially renew this document, especially if circumstances have changed.
Update Responsibilities
Has your child’s routine changed, or are they starting school and you are now adding more household responsibilities to your nanny’s job? Be clear about any new expectations and ensure that both parties are comfortable with the changes. There may need to be a rate adjustment based on changes in responsibilities.
Revisit Schedule
Are the hours and days your nanny works still suitable for both you and your nanny? Consider if any adjustments need to be made to accommodate changes in either of your needs.
Set New Goals
A contract renewal is an opportunity to set fresh goals for the upcoming year. This could involve specific developmental goals for your child(ren), plans for educational outings, or professional development for your nanny.
Clarify Termination Policies
While no one likes to think about it, you should review the termination clauses in your contract. Ensure both parties are clear on the notice period, severance pay (if applicable), and reasons for termination.
4. Strengthen the Nanny-Family Relationship
Beyond the formalities of reviews and contracts, nurturing the nanny-family relationship is key to long-term success. Here’s how you can strengthen the bond:
Show Appreciation: Acknowledge the hard work your nanny does. This could be as simple as a heartfelt thank you, an end-of-year bonus, or a gift. Your appreciation helps build a positive and collaborative relationship. National Nanny Appreciation Week is every year in September. At Your Happy Nest we will always post the dates of when it is and also send out an email so you can show your nanny extra appreciation that week!
Offer Professional Development: If your nanny is interested, offer opportunities for professional growth, such as a newborn care specialist course or attending a nanny conference or International Nanny Training Day event in your area. Investing in their career development benefits both your family and children and your nanny. If your nanny is interested in taking a professional development course or attend a nanny conference, we are happy to offer suggestions!
Plan Regular Check-ins: Don’t wait until the one-year mark to give feedback. Establish regular check-ins, whether monthly or quarterly, to maintain open lines of communication.
5. Deciding to Renew or Not
If your nanny has been a wonderful fit and both parties are happy, renewing the contract should feel natural. However, if you’re unsure about continuing, it’s important to have an open discussion with your nanny. Sometimes, families or nannies outgrow their roles, and ending the relationship amicably can be the best solution for everyone.
Exit Strategies
If either party chooses not to renew, it’s important to follow the contract's guidelines on termination notice and create a transition plan that works for everyone. This helps ensure a smooth and respectful conclusion to the professional relationship. If your nanny is leaving at the end of their contract and you are hiring someone new, it is a good idea to talk about a transitional time and whether you need your nanny’s help training your new employee. Also make sure to talk through dates and what needs to be returned to your family after they leave such as carseats, keys to your home or other items that belong to your family that your nanny has in their possession. It is also best practice to offer a letter of recommendation to your nanny if they are no longer going to be working for your family (and you had a positive relationship working with them of course!)
Final Thoughts
Taking the time to reflect on the past year with your nanny and discussing future goals is an essential step in fostering a strong and lasting partnership. Whether you’re renewing your nanny-family contract or preparing to say goodbye, open communication, respect, and careful planning will help you navigate this transition smoothly.
If you need assistance in renewing your nanny-family contract, don’t hesitate to reach out to us. If you hired a nanny through Your Happy Nest, we are happy to provide you with our complimentary template for conducting your performance review! We’re here to help guide you and answer any questions you may have.
