2021 saw millions of people quit their jobs in the aftermath of the pandemic. But did you know that 2022 broke the record of how many resignations were handed in, with over 50 million people leaving their jobs for something new? This ‘Great Resignation’ as it is widely known, has had a huge impact across the labor market, including in the household staffing industry. In this blog we will discuss exactly how the ‘Great Resignation of 2022’ affected domestic employment and what that means for the household labor market in 2023.

Why has there been a Great Resignation?

During the pandemic, those in the domestic service industry that kept their jobs were expected to take on additional tasks and adjust to accommodate the family’s needs. It became clear just how valuable household staff are. This was especially true when families were left without housekeepers, and when schools closed and parents were still having to work from home with children enrolled in online learning. Once the pandemic ended and families began hiring again, the job market was extremely buoyant and household employees were able to have their choice of job opportunities. Not only were they able to be more selective, but also domestic staff were able to ask for higher wages due to a long overdue pay increase in the market. This meant more staff began to look for new opportunities.

How has the household staffing industry been affected?

Now in 2023, and with more job opportunities available to household employees that offer higher pay, job-seekers are able to be more selective in their search to find that ideal long-term fit. High-net-worth individuals have generally been less affected by the financial crisis and have continued to offer appealing opportunities. In fact, the most qualified household staff are clamoring to achieve these kinds of top ranking positions. In these roles, household employees must make sure that their resume, cover letter, and letters of recommendation are representing them to the best of their ability, to avoid their efforts being wasted when applying for these top jobs.

Traditional households that have felt the effects of inflation have either held back on hiring new employees for fear of increasing their budget, or they are seeking more hybrid roles, like nannies that can assist with house manager duties, or house managers that are willing to assist with light cooking.

Many house managers are looking to break into the space of working as a personal assistant, to allow more flexibility and the option for remote work.

Domestic staff that once held very firm boundaries on what their job title did and did not include now have to make the decision of whether or not to re-frame their thinking about what tasks they are willing to help with, especially if they find a role that is offering their desired pay rate.

As the labor market likely cools later this year, it will be interesting to see what happens next. In the meantime, it is paramount that if you want to hire the best household staff, you are offering competitive pay and benefits to anyone that you hire. Otherwise you will simply lose out on the best candidate to another family or individual.

How much should I expect to pay my household employee to remain competitive in the labor market?

In addition to competitive base pay (starting at $25 per hour for qualified nannies in Chicago), more families are offering competitive benefits like a health insurance stipend, guaranteed bonuses, and generous paid vacation packages.

With more jobs available in the market offering generous pay and benefits, now more than ever employers need to think about how to retain high quality employees through things like appealing job offers, proper training, and performance reviews.

Not sure where to start with hiring a new nanny, housekeeper or house manager?

My Household Managed takes a consultative and personalized approach to household staffing.

We help you hire the domestic staff qualified to fit your unique needs, saving you time and providing peace of mind.

Let us help you find the best nanny, house manager, housekeeper or any other domestic employee you may be searching for and submit an application with My Household Managed.