One of the questions I've been asked more than almost any other over the last eight years is, "Is a nanny agency really worth it?"

It's a fair question. Most people don't think about nanny agencies until one day they realize they're going to need childcare. Suddenly they're introduced to a world they know very little about: agencies, job boards, Facebook groups, background checks, contracts, payroll, taxes, references, interviews. It is a lot.

Hiring a nanny isn't something most people do every day. Many families will only go through the process once or twice. That means they're making one of the biggest decisions for their family while having very little context for what the process should actually look like.

After spending the last eight years in this profession, I've come to realize that "is a nanny agency worth it?" may not be the best place to begin. The better question is, "what does a great nanny agency actually do?" Once families understand that answer, the value of working with a nanny agency becomes much easier to see.

I started my career as a professional nanny. After seeing how little guidance was available for caregivers who wanted to become truly excellent at their work, I wrote Nanny ABCs: The Sitter's Handbook. I later opened my own nanny agency, and today I have the privilege of working alongside nanny agencies from around the world through my role at Enginehire. I currently serve on the Board of Directors for the International Nanny Association, and I'm also a parent.

I mention this because I've had the opportunity to see this profession from every side, and each one has taught me something different. If there's one thing I've come to appreciate, it's the people behind great nanny agencies.

A nanny agency is more than a placement service

A nanny agency's real product is judgment about hiring in-home childcare, not a stack of forwarded resumes. From the outside, it might seem like agencies are only for wealthy families, or that they spend their days matching resumes with job descriptions. Having been on the inside, I can tell you that isn't accurate.

At the very least, a nanny agency is a fantastic resource for understanding your next steps. These are professionals who specialize in hiring in-home childcare. They understand the local market, what experienced nannies are looking for, what families should expect, and what tends to make a placement successful over time.

If you need a nanny and don't speak with an agency, you're missing an opportunity to receive guidance from people who work in this field every day.

I love building things, and my parents keep wanting me to add a deck to their lovely home. I may decide to build that deck myself, but I'm not going to start buying lumber and digging holes without speaking to the best deck builders in the area. I'm going to ask how they would approach the project, what they would consider, and what mistakes I should avoid. After speaking with them, I might realize that hiring the right people is the best decision.

That is how I think families should approach working with a nanny agency. Even before the search begins, the conversation itself has value.

There is a lot of heart in this industry

One of my favorite parts of my work today is getting to know nanny agency owners. Some started as nannies themselves and grew into agency ownership after realizing how much they enjoyed helping families and caregivers find each other.

Others followed a less direct path. I've met agency owners who built successful careers in finance and corporate leadership before finding their way back to childcare. They remembered how meaningful it was to work with children and families, and they decided to build their next chapter around that feeling.

At first glance, those career paths might seem unrelated. After getting to know these people, I've realized they usually have something in common. They enjoy helping people, solving problems, and building relationships.

Nanny agencies are often viewed as placement companies. I've come to see them as relationship builders. The goal isn't simply to help a family hire a nanny. The goal is to create a relationship where the family thrives, the nanny thrives, and everyone still feels good about the match years later. That is a much bigger responsibility than most people realize.

When I owned my nanny agency in Illinois, there was one part of the licensing process that always stayed with me. Each year I had to renew my license, and part of that renewal required affidavits from people who had known me personally. They had to confirm, before a notary, that they knew me and believed I was a person of good character.

I remember thinking about how interesting that was. The state wasn't only asking whether I had read all of the laws or knew anything about contracts, hiring practices, or the industry. It was asking people who knew me to vouch for my character.

In many ways, that represents what this profession is built on. Parents are trusting someone with the people they love most. Nannies are trusting families with their careers and livelihoods. Agencies are trusted to bring those two together.

"Trust isn't simply part of the job. It is the job."

Danny Rosenthal, Board of Directors, International Nanny Association

Great agencies help families understand what they need

One of the biggest lessons I learned as a nanny agency owner was that families are often very good at describing the solution they think they need. The challenge is that the solution isn't always the underlying need.

I remember working with one family whose number one requirement was that their nanny spoke Russian. Before we talked about infant experience, personality, communication, or how they wanted to raise their child, they wanted someone who spoke Russian. I understood why. Their culture was incredibly important to them, and they wanted their child to grow up connected to it.

We were fortunate enough to find them a Russian-speaking nanny, but the experience taught me something I've never forgotten. Families can clearly explain what they believe they want, while experienced nanny agencies become skilled at uncovering the deeper need behind those requests.

That doesn't mean an agency knows your family better than you do. It means they've had similar conversations hundreds of times. They've seen which qualities contribute to strong, long-term relationships, and which requirements sometimes become less important once a family meets the right person. That type of perspective is very difficult to replace.

What are you really paying a nanny agency for?

Families are paying for judgment, screening, experience, guidance, negotiation, and perspective. When people ask me what the fee buys, I don't begin with resumes or interviews.

An agency may recognize that the hours you need will make the search more challenging. They may explain that your budget is reasonable, but that the list of responsibilities needs to be adjusted. They may help you see that one qualification you viewed as essential is less important than finding someone who communicates well and fits naturally into your home.

Sometimes the most valuable thing an agency does is ask one question that changes the entire search.

This is also where negotiation becomes important. A good agency should be working toward an agreement that supports both the family and the nanny. The family deserves clear expectations, professionalism, and dependable care. The nanny deserves fair compensation, respect, and a position that accurately reflects the work they're being asked to do.

Those interests are not in conflict. A successful placement depends on both sides feeling supported. The best agencies understand that they aren't negotiating against either person. They're negotiating for the strength and longevity of the relationship.

One practical note on that negotiation: talk in gross wages rather than take-home pay. "We'll pay $25 an hour" means different things to each side if nobody says whether taxes come out of it, and it is the most common source of a first-payday disagreement. A nanny tax calculator makes that conversation concrete in about a minute, and it is worth having before the offer goes out rather than after.

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How much does a nanny agency cost?

Nanny agencies charge in one of two ways: a flat placement fee, or a percentage of the nanny's expected annual compensation. The actual amount varies considerably depending on the agency, local market, type of placement, and services included.

Pricing model	How the fee is set	Tends to suit
Flat placement fee	One agreed amount, quoted before the search begins	Families who want the total cost known up front, and lower-compensation or part-time roles
Percentage of annual compensation	Scales with the nanny's salary, so it moves with the scope of the role	Senior or specialized placements, where the work of finding the right candidate scales too

There isn't one model that is automatically better than the other. It often comes down to how the agency operates and what its clients prefer. Some families like knowing the complete cost up front. Other agencies prefer a percentage-based model because it allows the fee to reflect the scope and compensation of the position.

The most important thing is transparency. A reputable nanny agency should be comfortable explaining its fees, what is included, when payment is due, and what happens if a placement does not work out.

Many agencies also offer a placement guarantee. Depending on the agency, this may mean they will restart the search or provide a replacement within a specific period, such as 30, 60, or 90 days.

When I owned my agency, I offered a 30-day guarantee. My belief was that if something clearly wasn't working during the first month, I didn't want a family or nanny waiting until day 89 to say something. I wanted them to call me immediately so we could understand the problem and decide what needed to happen. I made sure that was clear, and it was always well received.

A longer guarantee may be valuable to some families, but it should not replace communication. Whatever guarantee an agency offers, ask how it works and what it includes. A great agency should welcome those questions.

Worth separating from the agency fee: the cost of employing the nanny once they start. The placement fee is one-time. Wages, your share of Social Security and Medicare, and unemployment tax are ongoing, and they are the number that actually shapes your budget.

Communication will matter more than you expect

If I could leave every family with one piece of advice, it would have very little to do with resumes, certifications, or years of experience. It would be about communication.

One day, while I was working as a nanny, I parked the family's car and went inside to pick up one of the children from school. When we came back outside, another vehicle had hit their car.

My stomach dropped. I hadn't caused the accident, but I still knew I was about to have a conversation I wasn't looking forward to. Would the family think it was my fault? Would they be upset? Would they think I was lying?

That phone call has stayed with me because it reminded me that great nanny-family relationships aren't built because nothing ever goes wrong. They're built because everyone feels comfortable talking when something does.

Having a nanny is difficult. Being a nanny is also difficult. Families are opening their homes and becoming employers, often for the first time. Nannies are entering an incredibly personal workplace where routines, expectations, and emotions can overlap.

That relationship requires both sides to be able to talk openly and talk often. The strongest placements I've seen over the last eight years haven't been perfect. They've been honest.

Hiring the right nanny is only the beginning

Families can spend weeks preparing interview questions, checking references, and thinking through the search. Then the nanny arrives for the first day, and everyone realizes they never discussed the Wi-Fi password.

Hiring is important, but onboarding is where the daily relationship begins.

Does your nanny know how to enter the house? Do they know the garage code, where the first-aid kit is located, and how deliveries work? Do they know who is allowed to pick up the children? Do they understand your routines, what food is available, and what should happen if someone is running late?

Every home has its own language. I once worked in a home where the lights were controlled by voice commands. The system would respond when someone said, "Family room lights on." I naturally called it the living room, and nothing happened. We simply had different names for the same room. It sounds silly, but these small details can create confusion when they aren't explained. A nanny needs to learn not only how your house works, but how your family works.

This is another place where a strong agency can make a difference. Great agencies help families think beyond the offer and prepare for the relationship that follows. They can provide contracts, onboarding guidance, communication support, payroll resources, and advice based on situations they've already helped other families navigate.

The paperwork side of that handoff is worth sorting out before the first day rather than after. A written nanny contract settles schedule, duties, overtime, and time off while everyone is still agreeing with each other. Payroll rules then vary by where the nanny actually works, so the state-by-state guides are the place to check what your state expects of you as a household employer, and there is an honest comparison of the best nanny payroll services if you would rather not handle the calculations yourself.

What makes a great nanny?

A great nanny is someone who wants the entire family to succeed.

That usually begins with providing exceptional care for the children, but it doesn't stop there. Great nannies pay attention. They notice patterns, communicate what they see, and work with parents to decide what may help a child thrive. They understand that they're part of a larger family ecosystem.

Experience, education, and certifications can all matter, but families should also pay attention to how a candidate communicates, how they speak about former employers, and how they make people feel during the interview.

Kindness matters. One interaction shouldn't necessarily define someone, but patterns deserve attention. Experienced agencies are especially good at recognizing those patterns because they know what professionalism looks like from both sides.

So, is a nanny agency worth it?

In my experience, working with a great nanny agency can bring tremendous value to one of the most important decisions a family will make.

An agency brings market knowledge, screening experience, hiring guidance, negotiation support, and years of perspective to the process. More importantly, they help families slow down, ask better questions, and build a position that has the best possible chance of succeeding.

Over the last eight years, I've had the privilege of being a nanny, owning a nanny agency, serving on the Board of Directors for the International Nanny Association, becoming a parent, and working alongside nanny agencies from around the world.

If there is one thing all of those experiences have taught me, it is that great nanny agencies don't simply help families hire nannies. They help families build relationships that can shape a child's life. That is a responsibility I have enormous respect for, and one I believe deserves far more appreciation than it often receives.

Questions to ask a nanny agency

Before selecting an agency, ask questions that help you understand its experience and process:

How do you learn about our family and what we need?
How do you recruit and evaluate nanny candidates?
How are references verified?
What background screening is included?
How do you help determine appropriate compensation?
What is included in the placement fee?
Do you provide a placement guarantee?
What support is available after the nanny begins?
Do you assist with contracts, payroll, taxes, or onboarding?
What makes your agency's approach different?

The answers should leave you feeling informed, respected, and confident. A great nanny agency should not only be willing to explain its process. It should be proud to.

See what you'll owe

Use our free calculator to estimate your nanny tax costs for 2026.

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Frequently asked questions about nanny agencies

What does a nanny agency do?

A nanny agency helps families define their childcare needs, recruits and evaluates candidates, conducts interviews and reference checks, coordinates background screening, assists with offers and negotiations, and often provides support after the placement begins.

How much does a nanny agency charge?

Nanny agency fees vary. Agencies commonly charge either a flat placement fee or a percentage of the nanny's expected annual compensation. Families should ask what the fee includes, when it is due, and whether a replacement guarantee is provided.

Do nanny agencies conduct background checks?

Most professional nanny agencies coordinate background screening, although the specific searches and services included may vary. Ask the agency what is checked, which provider it uses, and how it determines the appropriate scope of the screening.

Do nanny agencies check references?

Reference checking is generally an important part of an agency's screening process. Strong agencies do more than confirm dates of employment. They speak directly with references, ask thoughtful follow-up questions, and use those conversations to better understand the candidate's experience and working style.

Will a nanny agency help negotiate the offer?

Many nanny agencies help families and nannies reach an agreement regarding compensation, schedule, responsibilities, benefits, and other employment terms. A good agency works toward an arrangement that is fair, clear, and sustainable for both sides.

What happens if the placement does not work out?

Many nanny agencies offer a replacement guarantee for a specific period. The terms vary, so families should review the agency agreement carefully and ask what situations are covered.

Does using an agency mean the agency employs the nanny?

Usually not. In a standard permanent placement the agency introduces the nanny and the family becomes the household employer, so payroll, tax withholding, and the year-end W-2 stay with the family. The IRS treats a nanny as a household employee rather than an independent contractor when the family controls what work is done and how, which is set out in IRS Publication 926.

For 2026, that means Social Security and Medicare taxes apply once a family pays a nanny $3,000 or more in cash wages during the year, and federal unemployment tax applies once they pay $1,000 or more in any calendar quarter. A full-time placement crosses both within the first couple of months.

Some agencies do employ caregivers directly for temporary or on-call work, in which case the agency handles payroll instead. It is worth asking which arrangement you are signing up for, because it decides who owes the taxes.

Is a Nanny Agency Worth It? An Insider's Guide