Why do nanny placement agencies charge a placement fee?

When you choose to work with a placement agency, you’re relying on the agency to find the best candidate by understanding your family and who you’re looking for, and applying expertise and experience to present only candidates that will be a good fit for your family. The benefits our families have said we provide are the significant time savings, pre-interview prep, pre- and post-placement support.

Flat fee vs percentage of nanny’s salary

Many agencies charge a percentage of the nanny’s salary, often between 10% and 20%. For an average salary of $22/hr (approximately $44,000 annually), this fee can be anywhere from $4,500 - $9,000. 

When placement fees are based on a nanny’s salary, some may be incentivized by placing a nanny with a high hourly rate, which translates into a higher placement fee. 

The First Milestones charges a flat fee per placement (see our pricing here). We believe this is important, as it keeps us focused on finding the right candidate at a reasonable budget.

What’s covered by our nanny placement fee?

We also think it’s important for you to know what your placement fees are paying for. We’ll use a recent client’s stats to show you a typical breakdown of where the dollars go:

• 2 comprehensive background checks: retail $600 ($300x2)

• 1 basic background check: retail $90

• Infant care basics refresher course: retail $99

• Reggio-Emilia intro course: retail $29

• Shaken Baby Alliance donation: $75

• Yogi Squad donation: $50

• Total client-specific monetary retail cost: $943 + administrative and operating costs

What we provided this family:

• 30+ applicants

• 15 screening interviews 

• 3 final candidates 

• Key employment documents, including: 

  • Offer letter

  • Working guidelines

  • Nanny contract

  • Daily responsibilities

  • First day + important info 

• Ongoing support about performance conversations, check-ins, and general employee management advice

Most importantly, we provided this family with considerable time-savings and a reliable, vetted nanny who has become an extension of the family.

Learn more about our placement fees and placement process.

Ready to find a nanny for your family?