Family Guide to Annual Nanny Evaluation & Giving Raises
Hiring a great nanny is only half the job. Keeping one — and keeping the relationship healthy — depends on what happens after year one. An annual evaluation is the single most effective tool for that, yet it's the step most families skip. Not because they don't care, but because nobody ever handed them a script.
Why Annual Evaluations Aren't Optional
A nanny is a household employee, and like any employee, they deserve — and expect — a formal check-in on their performance and pay. Skipping this step doesn't avoid awkwardness. It just moves the awkwardness to the day they leave for a family who did the review, gave the raise, and kept them another five years.
An annual evaluation does three things at once:
Protects your investment. Nanny turnover is expensive and disruptive to your kids' routines. Regular reviews are one of the biggest predictors of retention.
Prevents resentment. Nannies who go years without a raise or a real conversation about their work tend to disengage — or leave — quietly.
Creates a paper trail. If a real performance issue ever surfaces, a documented review history protects you as the employer.
When to Schedule It
Don’t ambush them unexpectedly. Let your nanny know when you’d like to schedule time for the review so they can also come prepared with their thoughts.
Set the review around the anniversary of their start date, not the calendar year. This keeps the conversation tied to their actual tenure and performance, not an arbitrary date. Put it on the calendar 30 days out so it doesn't get lost in the shuffle of school schedules and sports seasons.
If your nanny is newer, a 90-day check-in is also standard practice — a lighter version of the annual review focused on fit and adjustment, not compensation.
How to Prepare
A good evaluation isn't a surprise conversation. Walk in with:
1. A written list of specifics. Vague praise ("you're doing great") and vague criticism ("things feel off") are both useless. Note actual examples: how they handled a sick day, a scheduling conflict, a discipline moment, a specific project like potty training or a reading routine.
2. Input from your kids, when age-appropriate. Not as an interrogation — just noticing what they mention. Kids are honest barometers of whether a nanny is engaged.
3. A review of the original job description. Has their role quietly expanded? Extra kids, more housework, longer hours, new responsibilities like driving or meal prep? This matters directly for the raise conversation below.
4. Your own performance as an employer. Are you paying on time? Giving accurate notice on schedule changes? Respecting their time off? A fair evaluation goes both directions.
5. A private, distraction-free time. Not during pickup, not with the kids in earshot. Schedule it like the professional meeting it is — 30 to 45 minutes, kids elsewhere.
What to Cover in the Conversation
Structure keeps the conversation from drifting into either a gripe session or an empty pleasantry exchange. Cover these in order:
Open with specifics, not generalities. Start with two or three concrete wins from the year.
Address any concerns directly but kindly. If there's a recurring issue, name it plainly and ask for their perspective before proposing a fix.
Keeping the conversation grounded in “I” statements rather than “you” statements helps the dialogue stay open and collaborative.
For example, saying: “I find it incredibly helpful when the kids’ lunch boxes are packed before you leave each evening. It makes our morning routine so much smoother, and I’d love for that to become part of our everyday rhythm. Is there anything we should adjust to make that doable each day?”
creates partnership and problem‑solving.
Compare that to: “You don’t pack the kids’ lunches before you leave every day like I’ve asked. You need to start doing that daily.”
Both versions communicate the same request, but the first invites cooperation and keeps your nanny open to helping. The second is more likely to trigger defensiveness or resentment, even when the underlying issue is small.
Set two or three concrete goals for the coming year. Something like helping with potty training, taking on more homework support, or getting the kids more involved in chores. Naming priorities now means she knows exactly what to focus on before the next review rolls around.
Ask them how it's going — genuinely. What's working, what's frustrating, what they need more of (support, supplies, flexibility, clarity). Make sure you address any concerns they may share (the last minute schedule changes are getting harder to accommodate, pay has been late a few times, etc).
Revisit the job description together. Confirm what's actually being asked of them matches what you're paying for.
Talk compensation. This is its own conversation, not an afterthought tacked onto the end — give it real time.
Put it in writing. A short follow-up email summarizing what was discussed and agreed upon (new rate, new start date for that rate, any changes to duties) protects both of you.
Industry Standards for Nanny Raises
This is the part families ask about most, and there's no need to guess. Across nanny agencies and household staffing professionals, the benchmarks are consistent:
Standard annual raise: 3–7% of current pay, reflecting a cost-of-living adjustment plus a performance component.
Cost-of-living portion: 2–4%, tracking inflation so their real earnings don't quietly shrink year over year.
Merit portion: 3–7% on top of that, for strong performance or added responsibility.
Exceptional performance or expanded duties (a new baby added to their care, additional household management, more hours) can reasonably push the total raise toward 8–10%.
A simple gut check: if your nanny earns $25/hour, a standard raise lands them between $25.75 and $26.75/hour. If their role has grown significantly, $27–$27.50/hour is defensible and fair.
A raise should happen every year, full stop — even if it's modest. A flat rate held for multiple years reads to your nanny as a message that their growing experience and expanding responsibilities aren't being noticed. If performance genuinely hasn't met expectations, that's a conversation for the evaluation itself — not a reason to skip the raise conversation entirely.
Year-End Bonuses: A Separate Line Item
Distinct from the annual raise, a year-end or holiday bonus is standard practice in this industry — typically one to two weeks of their regular pay. It's not required by law, but it is customary, and nannies talk to each other. Skipping it while peers in your area receive one is a quiet but real retention risk.
If that amount is not in the budget, it’s important to give something to recognize their dedication to your family over the year. Maybe its an extra paid day off, a bouquet of flowers and small gift card to their favorite restaurant. It’s huge for a nanny to know all their small efforts you may not even notice day to day, don’t go unnoticed overall.
Documenting the Outcome
Once you've talked through everything, finalize the review form together. Both of you sign and date it — this confirms the review happened and what was discussed, not that either of you agrees with every word on the page. Give them a copy and keep one for your own records.
This single habit does more than any other to prevent "I thought we agreed on X" disputes down the road.
Recognize the Growth, Not Just the Report Card
An annual review isn't only a compliance exercise — it's how a nanny gets credit for real professional growth, and how you spot where they might benefit from more training or support. Framed well, it's one of the clearest signals you can send that this is a real job you take seriously, not an informal arrangement that happens to involve your children.
The Bottom Line
A nanny evaluation done well is not a performance review in the corporate, dreaded sense — it's a structured way of saying I see your work, and I want to keep you here. Families who treat it as a serious annual ritual, rather than an uncomfortable box to check, are the ones who keep exceptional caregivers for years instead of one contract cycle.
Southern Coast Nannies does NOT ever charge families to redo or update Family Nanny Agreements. If you’d like SCN to provide an updated agreement reflecting any changes that all parties sign, simply email the necessary changes to info@southerncoastnannies.com and we’ll be happy to help!