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What Benefits Should I Offer?

Individuals or families looking to hire the best household employee possible need to find ways to offer not just a competitive wage, but an attractive benefits package, too. Outside of healthcare benefits, here are a few additional ideas on what type of benefits are the most popular for household employees.

#1: Retirement.

Providing your nanny or other household employee a 401K plan will give you a one-of-a-kind recruiting advantage over other people that are looking to hire without that option. Not to mention, it is a great way to retain your employee once you hire them. Further, it shows that you care about your employee and their future, and that you’re willing to do your part in helping them build a source of retirement income. Contact a financial planning professional to learn more about your options, which might include 401K plans, Individual Retirement Accounts, and more.

#2: Student loan repayment.

Many household employees attend school, training courses, or take time for continuing education in their career field. Because of this, they accumulate debt. One benefit that families may wish to offer current or new employees is a student loan reimbursement. You could offer a monthly amount or one lump sum. Keep in mind that there is not currently an option to write-off this benefit when you file your taxes.

#3: Education reimbursement.

If there are trainings, seminars, conferences, or other educational courses that your employee could benefit from to promote their professional growth, consider reimbursing them for these. This could be a great motivator for them to get additional training that could make them provide even more valuable contributions to your family and home.

#4: Bonuses.

Providing bonuses throughout the year is a great way to encourage your employee and let them know you appreciate them doing a good job. Consider giving them a lump sum payment, or if you want to do something a little different, give them a gift card to their favorite restaurant, salon, or retail store. Or give them an airline gift card with a note encouraging them to use their paid time off and go visit family, friends, or to take a relaxing solo trip.

Spend some time thinking about what benefits work best for your financial situation and for your household employees. Meaningful benefits, in addition to in-person ‘thankyous’ from time to time will go a long way in creating loyalty with your household employee.

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