How to Hire a Nanny: Agency Fees, Background Checks, and What to Include in Your Agreement

Hiring a nanny is one of the most significant staffing decisions a household makes, and most families go into it without a clear process. They post a job, collect some resumes, do a couple of interviews, and rely on gut feel. That approach works sometimes. When it doesn’t, it’s expensive and disruptive to fix.

A better approach treats the hire like the professional placement it is. That means knowing how agencies work and what they cost, understanding how to structure a trial period, running a real background check, and getting everything in writing before someone starts.

Agency vs. Independent Search

A nanny agency pre-screens candidates against its own standards before presenting them to you. The family still interviews, still makes the call, but the initial pool has been filtered for experience, references, and usually certification. That vetting has a price.

Agency placement fees typically run 10 to 20 percent of the nanny’s first-year salary, or a flat fee of $2,000 to $5,000+. You pay this in addition to the nanny’s compensation. Families who need a hire quickly or who don’t want to manage the screening process themselves often find that cost reasonable.

An independent search through platforms like Care.com or local nanny networks costs less but puts the screening entirely on you. That’s manageable if you know what to look for. If you don’t, you may spend more time than the agency fee would have cost.

The Trial Period

A nanny trial period is a paid evaluation window, typically 1 to 2 weeks, during which both the family and the nanny assess fit before committing to a long-term arrangement. It’s not legally required, but it’s standard practice for good reason.

Treat it as mutual. The nanny is also evaluating whether your household is a good fit. Approaching it as a one-sided audition tends to start the working relationship on the wrong foot. If the trial works well for both parties, move quickly to a signed work agreement. Leaving things informal after a successful trial creates ambiguity that causes problems later.

Background Checks

Do not skip this step and do not rely on what a candidate self-reports. Use a reputable third-party service and run a real check: a county criminal search for every county where the candidate has lived, a national database search, and a sex offender registry check. Social Security verification is also standard.

Reference checks are separate and equally important. Call former employers directly. Ask behavioral questions: “Tell me about a time something went wrong with a child in her care and how she handled it.” Listen for specificity. Vague, uniformly positive answers from references are worth pressing on.

The Work Agreement

A work agreement is not optional. Household employment has specific legal requirements around overtime, guaranteed hours, and tax withholding, and a written agreement is how both parties stay protected if something goes wrong. Here’s an example work agreement you can download and modify – usnannyinstitute.com/nanny-contracts/

At minimum, a nanny work agreement should include hourly rate, regular and overtime hours, overtime rate (federal law requires 1.5x for hours over 40 per week), and a clear list of job responsibilities. Paid time off, holidays, guaranteed hours, mileage reimbursement, health insurance or a health stipend, and a trial period clause should also be covered.

Families who hire certified nannies, particularly those with Nanny Institute credentials, often find that those candidates come in knowing exactly what should be in the agreement. That’s a good sign.

Looking for a certified candidate? Browse Nanny Institute programs to understand what certified training covers.

Further Reading & Resources

External Resource: What to Look for in a Nanny or Other Caregiver — American Academy of Pediatrics

Nanny Institute: Find a Nanny Institute Certification Program