A Closer Look at Nanny Agency Fees: Flat vs. Percentage-Based

When you’re hiring a nanny, it’s easy to get overwhelmed by the number of choices—not just in candidates, but also in the agencies that help connect you with them. One of the most overlooked but important details in choosing a nanny agency is how they charge you. Many agencies take a percentage of the nanny’s salary, while others offer a flat placement fee. At first glance, this might seem like a small difference, but it can have a meaningful impact on both your wallet and your confidence in the process.

Here’s why families may want to consider working with an agency that offers a flat placement fee instead of a percentage-based pricing model:

Transparency From the Start

With a flat fee, you know exactly what you’re paying from the beginning. There’s no need to do mental math or worry about fluctuating costs if the nanny negotiates a higher rate. This allows you to make decisions based on what’s best for your family—not based on what will affect your agency’s commission.

No Incentive to Upsell the Nanny’s Rate

When an agency charges a percentage of the nanny’s annual salary—sometimes as high as 15% to 20%—they earn more if the nanny earns more. That can create a misalignment. You might feel pressure to agree to a higher rate or be encouraged toward candidates outside your original budget. With a flat-fee model, the agency’s income doesn’t change based on your nanny’s salary, which reduces the chance of biased recommendations.

Encourages Fair Pay for the Nanny

Some families worry that percentage-based agencies might inflate the nanny’s rate to increase their commission. A flat fee removes this concern. It supports a more objective discussion about appropriate compensation based on experience, responsibilities, and market rates—not agency margins.

Easier Budgeting

If you’re planning for the cost of childcare over the long term, knowing your exact up-front placement cost makes budgeting simpler. A percentage-based model can vary widely, especially in areas where nanny salaries span a broad range.

You’re Not Penalized for Being a Competitive Employer

Families who want to offer strong compensation shouldn’t be penalized for it. In a percentage-based model, a family offering $35/hour may pay significantly more in placement fees than their neighbor offering $25/hour—despite receiving the same level of service. With a flat fee, every family pays the same, regardless of what they choose to pay their nanny. That means you can lead with your values and offer competitive pay without it costing you more just for doing the right thing.

It Keeps the Focus on the Match

The heart of a good placement should be finding the right fit—not negotiating salary for someone else’s benefit. Flat-fee agencies are often focused on long-term success, making thoughtful matches based on compatibility, values, and expectations, rather than the economics of the highest possible salary.

While both fee models exist in the industry, a flat-fee agency like Kensington Nanny Service can offer families peace of mind, clarity, and confidence that their investment goes toward service—not commission. It’s one more way to ensure the hiring experience stays focused on what really matters: your family’s care and the well-being of the nanny you welcome into your home.