Best Practices for Employers: Attracting and Retaining Top Talent in Luxury Home Staffing

When it comes to employing staff for your home, understanding what potential employees will be looking for in a compensation package is crucial if you want to attract and retain top talent. Whether you're hiring a nanny, house manager, or housekeeper, offering a comprehensive benefits package that aligns with industry standards can make your household more appealing to skilled professionals. As experts in recruitment for private service professionals, our guide will help you understand what benefits are considered best practice in the household staffing industry and how to position your offer to be competitive.

Standard Benefits for Full-Time Household Employees

Here are the benefits that are considered as standard practice if you are looking to hire a nanny, house manager or other household employee on a full-time basis:

Guaranteed Hours: Ensure your employees have stable and predictable income by offering guaranteed hours. This creates a sense of security and demonstrates your commitment to their financial well-being.
Healthcare Plans: Provide a healthcare plan or stipend to cover health insurance costs. Industry standards range from full coverage to an 80/20 split, with stipends typically between $500 and $1,000 per month. This is especially attractive to employees who value health security. Read more on the reasons to offer a healthcare plan or stipend here.
Paid Time Off:
- Vacation Days: Offering at least 10 paid vacation days per year is standard.
- Sick Days: Provide around six paid sick days annually.
- Federal Holidays: Most employers offer 12 paid federal holidays. Flexibility to allow time off in lieu (TOIL) for working on holidays or providing additional pay is appreciated.
Financial Benefits:
- Yearly Raise: A minimum of 3% annually to adjust for inflation is expected.
- Year-End Discretionary Bonus: Often equivalent to one month’s salary.
- Mileage Reimbursement: For work-related travel, reimburse at the IRS rate (67 cents per mile for 2024).
- Per-Diem and Expenses: Cover work-related travel expenses, excluding commuting.
Performance Reviews: Regular performance reviews with opportunities for raises and promotion keep employees motivated. Offering letters of reference can help support their career advancement and we recommend giving your employee a letter of reference annually as part of their review.

Standard Benefits for Part-Time Household Employees

Even if you are hiring someone to work in your home part-time, there are still some benefits that are considered standard and best practice in the household recruitment industry. They include:

Guaranteed Hours: Even part-time employees should be offered guaranteed hours to ensure stable earnings.
Paid Time Off:
- Vacation Days: Standard is five paid vacation days per year.
- Sick Days: Offer at least three paid sick days.
- Federal Holidays: Providing paid holidays similar to full-time staff is appreciated.
Financial Benefits:
- Yearly Raise: Ensure a 3% annual raise.
- Year-End Discretionary Bonus: Equivalent to one month’s salary.
- Mileage Reimbursement & Per-Diem: As with full-time staff.
Performance Reviews: Annual reviews with opportunities for feedback and future advancement are essential, along with a letter of reference.

Additional Benefits (Optional)

Offering enhanced benefits can set your household apart from others, making your positions highly desirable. These are not considered standard, but may help you attract top-tier candidates:

Sign-On Bonus: Consider offering a sign-on bonus, typically between $5,000 and $10,000, to attract highly sought-after professionals in the household staffing industry.
Comprehensive Healthcare: Extend healthcare coverage to employees’ families, including dental, vision, and life insurance.
Additional Paid Time Off:
- Holidays: Up to 16 paid holidays.
- Vacation Days: Increase vacation days based on experience, such as 15 days for up to 10 years of experience, and up to 30 days for those with 20+ years.
Guaranteed Year-End Bonus: Offering a guaranteed year-end bonus, ranging from 10% to 25% of base pay, can provide significant motivation.
Vehicle Benefits: Provide a vehicle for work and personal use, or a stipend for fuel, insurance, and maintenance costs.
Transportation Costs: Cover the cost of public transportation, such as train and bus tickets.
Relocation Packages: If the job requires relocation, offer to cover moving expenses.
Retirement Plans: Offer retirement plans with an employer match or even stock options to support long-term financial planning.
Housing: Providing housing or a housing allowance can be a substantial benefit for many employees.
Educational Assistance: Tuition assistance for the employee and their family can be a highly valued perk.
Clothing Allowance: Especially important if the job requires a uniform.
Long-Term Benefits:
- Anniversary Bonus: Offer significant bonuses for long-term service.
- Meal Allowances & Gym Memberships: Promote health and wellness.
- Structured Bonus Plans & Gifts: To reward performance and show appreciation.

Offering competitive and comprehensive benefits not only attracts high-caliber employees but also fosters loyalty and satisfaction among your staff. As the demand for skilled household employees in luxury homes continues to grow, aligning your compensation packages with industry best practices will ensure you attract and retain the very best talent. If you’re looking to fill a role in your household, considering these benefits can make a significant difference in the quality of candidates you attract.

At My Household Managed, we appreciate that you lead a busy life and want to hire someone you can trust to work in your home — let us make your life easier by handling your unique household staffing needs.

If you are a family looking for a nanny, house manager, housekeeper or any other staff for your private household, inquire with My Household Managed.