Nanny Agencies – Traditional vs. Online

Jan 29, 2015 | Hiring an Employee, Household Payroll & Taxes

nanny agenciesA good agency is a helpful resource in finding a nanny or other household employee. After all, household employers hire staff to make life more convenient, easier, and fun—enabling the employer to direct his or her energies toward enjoying his or her family or home.  Online nanny agencies have become more popular in recent years, and while both traditional agencies and online ones each have benefits, there are many differences that may help an employer to decide which route to take when hiring a nanny or other employee.

Our comparison chart below shows the general differences between traditional and online agencies.

   Traditional Agencies  Online Agencies
 Time Savings
  • All searches assisted by agency staff.
  • Job postings managed by agency staff.
  • Agency staff assist in job description and work agreement development, may provide interview questions and other necessary paperwork.
  • Agency will assist in scheduling interviews.
  • Agency will generally offer a select few qualified candidates, helping employers to immediately target the best candidates.
  • Search on your own.
  • Do the selection process yourself for your preferred candidates.
  • Post jobs yourself.
  • Develop job description and work agreement yourself (some sites offer templates or articles to help).
  • Perform background checks on your own (unless included).

Note: There can be even more effort involved on your part, and therefore the process can take longer.

 Turn-around Time
  • Depending on the agency’s current pool of candidates, this could be fast, or you may need to wait for a list of qualified candidates.
  • Can help you find a large number of prospective candidates in a matter of minutes, which may lead to your selection of candidates for interview.
 Cost
  • Because you are engaging a consultant with staff, you will be paying a higher fee.
  • Membership to online sites tends to be less expensive, however there can be “additional fees” in add-on services.
 Screening
  • Pre-screened applicants.
  • Phone and face-to-face interviews conducted before family interviews
  • Reference and employment checks verified.
  • Full background checks provided.
  • You may have to conduct all pre-screening and interviews.
  • You conduct your own reference/employment checks.
  • You conduct background checks (unless included).
 Expert Assistance
  • Assistance and guidance with job offer.
  • Job description development.
  • Compensation package.
  • Experience based on agency selected.
  • No personal guidance.
  • You are responsible for job offer.
  • Limited resources for employment policies.
  • Limited guidance on fair hiring/compensation.
 Tax, Payroll, and   Insurance Advice
  • Agency provides compliance education and materials.
  • Referrals for detailed advice and free consultations.
  • You decipher compliance requirements.
  • Some sites do refer to a tax and payroll service, such as GTM.com.
  • Some sites do post articles on tax and payroll issues.
 Post-placement Support
  • Ongoing support after placement.
  • Managerial advice and job coaching.
  • Temporary babysitting services.
  • Emergency backup care for unexpected absence of primary caregiver.
  • No managerial or personalized support after hire.
 Guarantee
  • Usually an agency will guarantee a placement by providing a replacement or an extended membership so you can use its services again for free.
  • Limited or no guarantee.

 

Remember, a child care or senior care provider is the most important person you will ever hire – you are trusting the safety and well-being of a loved one to a stranger. Make sure to research your options diligently and choose the best option for your family.

For more information, please contact GTM’s Household Employment Experts at (888) 432-7972.

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