Helping Families and Candidates Balance Pay, Benefits, and Budget

This month’s article comes from GTM’s Agency Partner Manager Christa D. Nader

Running a household staffing agency means navigating one of the most delicate parts of the placement process: compensation conversations.

Workers desire wages that reflect their experience, professionalism, and rising cost of living, and families need to stay within a realistic household budget. When those priorities collide, agencies often serve as the bridge that keeps conversations productive rather than uncomfortable.

The good news? With the right framing and guidance, wage discussions don’t have to feel contentious. They can become thoughtful conversations about value, sustainability, and long-term success for everyone involved.

Shifting the Focus from Hourly Number to Total Compensation Package

One of the most important roles an agency can play is helping both families and nannies look beyond a single hourly wage number, and instead think holistically at all the benefits a position can bring.

It’s natural for candidates to focus on pay rates and for families to focus on weekly cost, but successful placements often happen when both sides understand the full hiring package, not just the headline wage.

Total compensation may include:

• Guaranteed hours
• Paid time off and paid holidays
• Year-end or annual bonuses
• Overtime payments
• Full health benefits or funds toward healthcare
• Transportation reimbursements
• Retirement contributions and matching
• Schedule consistency and job longevity

When agencies introduce this broader perspective early, it sets expectations and reduces friction later in the process.

Helping Applicants Evaluate Roles with Slightly Lower Wages but Strong Benefits

Many job seekers hesitate to pursue positions with hourly rates below their ideal number. Agencies can provide valuable coaching here by helping applicants assess what they may gain beyond just pay, while not inadvertently creating a wage-ceiling for the candidate.

Rather than asking a nanny to “settle” for a wage that is below their target, agencies can help them see the bigger picture.

For example:

• A role with health benefits may significantly reduce the candidate’s monthly out-of-pocket expenses.
• Health reimbursement arrangements (HRAs) reduce taxable income, so both families and nannies save on taxes while gaining health benefits.
• Guaranteed hours offer income stability that a higher-paying yet inconsistent role may not.
• Paid time off and predictable scheduling contribute to work-life balance and long-term job satisfaction.

Agencies can also help determine whether a role offers growth. These conversations empower applicants to make informed decisions based on their financial realities and long-term career goals, rather than focusing solely on hourly pay.

Educating Clients on the Power of Benefits

Families often assume that offering a higher hourly wage is the only way to attract top-tier candidates. Agencies can help expand that mindset by educating on what benefits play a major role in strengthening recruitment in today’s market.

Some form of health benefits and paid time off are increasingly viewed as standard by professional domestic employees. When families include them in an offer, they often see:

• Stronger candidate interest
• Increased retention
• Less pressure to offer top-of-market wages from the start

Agencies can also reassure families that offering benefits doesn’t have to mean navigating complex insurance plans. There are flexible, predictable options that make it easier for household employers to support their employee while maintaining budget control.

Framing benefits as an investment in stability, not as an added burden, helps families see the bigger picture and get comfortable allocating part of their budget to these additional ways with the intention of attracting the best.

Acting as a Neutral Guide During Negotiations

When compensation negotiations stall, agencies are often called in to mediate. The key is staying neutral, factual, and focused on shared goals.

Successful agencies rely on a few core arbitration tactics:

• Use market data to ground conversations in reality rather than opinion.
• Clarify priorities by translating what each side truly values, whether that’s pay, benefits, stability, flexibility, or the true readiness to wrap up the search in a hire.
• Propose structured compromises, such as a mid-range wage paired with benefits or a clear timeline and guidelines for raises.
• Keep discussions professional, steering conversations away from emotion and toward long-term fit.

Sometimes, the most professional guidance is helping both sides recognize when a match may not be right, protecting trust and setting the stage for better placements down the line.

Setting Expectations Early Leads to Better Matches

The strongest placements happen when agencies take a proactive role in compensation education. By addressing budgets, benefits, and wage expectations early, agencies make recruiting easier and reduce last-minute tension.

When household agencies act as educators and not just matchmakers, they strengthen their reputation, improve retention, and reinforce their role as trusted experts.

Remember that GTM is here for you and your families as a resource for all things concerning household payroll. Please don’t hesitate to contact us with questions or to request information.