Three Ways to Hire a Nanny: Agency, Marketplace, Direct
Three Real Paths
When a family sits down to hire a nanny for the first time, the options can feel overwhelming. They aren't. There are essentially three paths, each with a different cost structure, time investment, and fit. This article walks through all three so you can pick the one that works for your situation.
Option 1: Placement Agency
How it works. You hire a regional or national placement agency. They interview candidates, do background checks, present you a short list, sometimes broker the offer letter, and stay engaged for a defined period after the placement (often 30-90 days) in case the match doesn't work out.
Typical cost. $3,500 to $15,000 in one-time placement fees, often calculated as 10% to 20% of the nanny's first-year gross salary. Some agencies also charge an ongoing retainer.
When it makes sense:
- You have a higher household income and value the time savings
- You want a vetted, professional, full-time nanny and don't want to do the screening yourself
- You have specific requirements (Mandarin-speaking, special-needs experience, household-manager role) and want a search professional doing the work
- You want a backup if the placement doesn't work out
When it doesn't: Your budget can't absorb the placement fee on top of nanny salary + employer taxes. Or you want a more direct, lower-touch experience.
Option 2: Marketplace
How it works. Platforms let families and nannies find each other directly. You post a job or browse profiles, message candidates, schedule interviews, write your own offer letter (often with help from a tool).
Typical cost. Varies significantly by platform.
- Kindred is free for both families and nannies. There are no membership fees, no paywalls, and no per-message charges. We make money over time on optional services like payroll and background checks.
- Care.com charges fees on both sides. Families typically pay a Premium subscription to message caregivers; nannies typically pay for background checks and may pay for premium subscriptions to boost their visibility.
- Sittercity, UrbanSitter, and other platforms have their own pricing models, usually involving a subscription on at least one side.
If cost is part of the decision, it's worth comparing total out-of-pocket across the platform you're considering, especially because some platforms layer multiple fees on top of each other.
When it makes sense:
- You want to control the hiring process and timeline
- You're hiring part-time, seasonal, or for a lower-priced market where placement fees would dominate the budget
- You want to see what nannies in your area actually earn (Kindred's Pay Index) before deciding what to offer
- You're hiring a second time, or you have a strong instinct for what you want
When it doesn't: You're new to household employment, want someone else to do the heavy lifting, and a higher-end placement fee fits your budget.
Option 3: Direct (Word of Mouth)
How it works. A neighbor's nanny becomes available. A friend recommends someone. A mom-group Facebook post lands a candidate. You bypass any platform.
Typical cost. Free. But the search is unpredictable and the candidate pool is small.
When it makes sense:
- You're already plugged into a parenting network with active referrals
- You're flexible on timing and can wait for the right person
- You want a nanny who comes with a personal endorsement
When it doesn't: You need someone soon, you don't have a strong network, or you want to compare candidates rather than just take what's offered.
How to Choose
There isn't a universally right answer. The practical way to choose is to write down three numbers:
- Your annual childcare budget, including employer taxes (Kindred's tax calculator does this in 30 seconds)
- How much time you have to spend on the search (hours)
- How comfortable you are managing a household employee yourself
If budget is large and time is short, an agency makes sense. If budget is medium and time is medium, a marketplace makes sense. If budget is small and your network is strong, direct can work.
The Pay Index is useful in all three cases: it tells you what to budget. The path you pick to get there is up to you.