Online Nanny Job Site Settles Claims of Deception for $8.5M

In light of Care.com’s settlement with the FTC over alleged “unlawful practices,” here’s why your family may have a better experience hiring through an agency rather than an online nanny job site.

In a statement released earlier this week, the Federal Trade Commission (FTC) said that Care.com has agreed to a proposed $8.5 million settlement for alleged “unlawful practices,” including “deceptive advertising” enticing caregivers to buy subscriptions to apply for jobs and “a number of unlawful tactics” to prevent families from being able to cancel their subscriptions.

In 2020, Care.com paid $1 million to settle allegations brought by two district attorneys in California over misrepresented background checks and unlawfully enrolling customers in auto-renewal subscriptions.

That settlement came on the heels of a Wall Street Journal report that found the platform didn’t conduct complete background checks of its caregivers, placing that burden on families. The report also found that unvetted, and even unlicensed, daycare centers were also listed on the site and that some of those providers were responsible for the deaths of children in their care.

Hiring a nanny through an agency or online job site

You have choices when seeking an in-home caregiver for your children. Families use referrals from friends and family, social media, online job sites, and placement agencies, to name a few of the most popular ways to find household help.

There is no question that websites and mobile apps have helped automate many tasks, saving us time and making our lives easier. However, for families that hire household help, online and mobile platforms haven’t produced significant efficiencies in hiring and vetting safe and qualified candidates or in quality of care.

Based on a GTM survey of household employers, when a family hires a nanny through an agency rather than a website, they’ll find a better-quality nanny, one they’ll keep for longer and spend less time finding the right match.

Sixty percent of families that hired a nanny through an agency have had only one nanny in the past five years, while only 39 percent of families that hire through a website can make that claim.

Also, 58 percent of families that used an agency spent less than 20 hours on the hiring process. Of those hiring through a website, 59 percent spent more than 20 hours on hiring.

In the same survey of household employers, 74 percent of those who hired through an agency said the hassle-free process and time savings were the top reasons they decided to work with placement professionals.

Agencies also aim to find the best matches for their clients, as 91 percent of families said security and screening candidates were the top reasons for going with an agency.

Only the top applicants are presented to families for potential interviews, which helps cut down on hiring time and may result in a higher-quality nanny the family will want to retain for a longer period.

The supposed benefit of using an online job site is a broader selection of candidates. However, 83 percent of respondents who used an online job site said the “number of responses from unqualified candidates” was one of the most significant drawbacks of going online to find a nanny. Sifting through applicants that don’t match a family’s criteria can add time and frustration to the hiring process.

How to find a nanny agency

If you’d like to hire through an agency, here are some tips for finding one that will fit your needs.

• Talk to friends and colleagues who have gone through an agency; personal recommendations can provide insight into the quality and reliability of a service.
• Utilize neighborhood groups, such as local parenting groups or community organizations, where other parents may have recommendations.
• Search for agencies online or on popular social media platforms. Agency websites and social media profiles can give you a sense of their professionalism and client interactions.
• Select an agency that is a member of an industry association, such as the Association of Premier Nanny Agencies or the International Nanny Association. Membership in these organizations typically shows a greater commitment to the household employment industry.

Questions to ask a nanny agency

When selecting a nanny agency to help find candidates for your family, it’s essential to ask the right questions to ensure you choose an agency that aligns with your needs and expectations. Here are some key questions to consider:

• How long has your agency been actively placing household employees?
• Can you provide references or testimonials from families you’ve worked with?
• Is your agency licensed (if required by its state) and insured?
• What is your process for vetting nannies before recommending them?
• What are the minimum qualifications and experience levels of the nannies you place?
• How do you conduct background checks, including criminal, driving, and reference checks?
• Do you require your nannies to have specific certifications, such as CPR and first aid?
• How do you match nannies with families? What factors do you consider in the matching process?
• What are your fees, and what do they cover?
• What is your credit or replacement policy if the nanny placement doesn’t work out?
• What kind of contract will we sign with your agency?
• Do you assist with drafting the employment agreement between the family and the nanny?
• Are you familiar with local employment laws, and do you provide guidance on legal responsibilities such as payroll, taxes, and benefits?
• What kind of support do you offer after a nanny is placed? For example, do you provide ongoing support or mediation if issues arise?
• How do you handle situations where the family needs a temporary replacement, such as when the nanny is sick or on vacation?
• Can you accommodate special requests, such as finding nannies with specific skills (e.g., language skills, special needs experience)?
• Do you provide nannies with training or resources on health and safety?

What to share with an agency

When working with a nanny agency to find the right caregiver for your family, providing detailed and accurate information is essential. This helps the agency better understand your needs and preferences, ensuring they can find a nanny who is a good match for your family.

Here is some essential information about your family and desired candidate to share with the agency.

• Number of children
• Household setup (other household members such as pets, grandparents, or extended family living with you)
• Special needs or medical conditions
• Expected work schedule
• Flexibility requirements
• Holiday and weekend work expectations
• Childcare duties
• Transportation needs
• Child(ren)’s daily schedules and activities
• Parenting philosophy
• Communication style
• Candidate qualifications (experience level, certifications and training, language skills, etc.)
• Candidate personality traits
• Pay range
• Benefits to be offered
• Desired start date
• Length of employment
• Deal-breakers

By providing this information to the agency, you’ll help them find a nanny who meets your logistical needs and fits well with your family’s lifestyle and values.

GTM can help

GTM works with hundreds of agencies across the country. We can help connect you with partners that serve your area. Just call us (800) 929-9213 and speak with a household employment expert. Also, ask how our comprehensive payroll and tax services will make it easy to pay a nanny and handle all wage, tax, and labor requirements.

Hiring a nanny?

Download Your Guide to Hiring a Nanny. In this guide, we lay out the steps on how to hire a nanny the right way and maintain a strong relationship with your employee.