Employers: Recruiters Don't Set the Prices; the Market Does

Would you walk into a Mercedes dealer and tell them you want to buy a car but not tell them your budget? I could ask the same question about house shopping. How could the real estate agent know what to show you if they don't know your budget? Well, recruiting and hiring is no different.

Some household employers have a disconnect when it comes to shopping for domestic staff. Whether you want to hire a personal assistant, house manager, gardener, nanny, or governess, there are some misconceptions about how it works.

Misconception 1: Domestic staffing agents drive up the price

At a top-tier staffing agency like The Celebrity Personal Assistant Network, we represent the "Michael Jordans of Household Staffing."

Professional athletes have agents, and those agents don't set the prices -- the talent and market conditions do. Sports agents don't try to drive the price to squeeze the buyer deliberately; the same is true for domestic staffing agents.

When high-net-worth individuals contact a household staffing agency, they first need to have a realistic expectation for what they expect to get for the price they are willing to pay.

When households withhold budget when talking to headhunters, it serves no purpose because, in the end, weeks of time will be wasted calling every agency in town -- only to end up at square one again.

Misconception 2: National averages are a gauge for pricing household staff

When celebrities or UHNW families use generic websites to check for hourly rates, it's not comparing apples to apples. The internet might say the rate for a personal assistant is $15.01 an hour, but that methodology is fundamentally flawed.

If a PA is a part-timer in high school and runs basic errands like grocery shopping (and they live in Oklahoma), you could get an assistant for $15.01 per hour.

However, if you are in New York City and want a full-time PA who has ten years of experience planning events for diplomats and possesses a master's degree, then those roles are $150,000 to $250,000 a year, plus perks.

Misconception 3: The number of applications on Craigslist doesn't mean the job is "desirable"

It's not about how many apply; it's who applies.

Recruiter: "We received your email. We understand that you want to hire a top-tier nanny with a BA degree in Childhood Development, and the candidate should have ten years of experience with celebrities and be able to pass a background check. Your 20,000-square-foot estate is located in Los Angeles, and you want to pay $20 an hour. Is that right?

Celebrity: "Yes, that's right."

Recruiter: "I'm really sorry, Mr. Celebrity, but those roles start at $50 an hour and could climb much higher based on many factors, which include but aren't limited to the number of children to supervise, number of hours to be working each week, and whether the candidate will be on call nights and weekends. In fact, we have several candidates making $100 an hour in the Los Angeles area."

Celebrity: (Sounding frustrated) "We took out a 'Confidential Employer' ad on Craigslist, and we've received many applications, so we know the demand is there at the $20 an hour rate."

Recruiter: "Um... Ok... Urr... Hmmm. Well, I have to ask then, Mr. Celebrity. Why are you reaching out to us then?"

Celebrity: "We didn't like any of the candidates' resumes. Also, we don't know how to verify their employment, run background checks, or know if they would suit our family."

Recruiter: (long pause, maintaining composure) "I'd like to thank you again for contacting us. As I said, the rates are between $50 and $100 an hour, and our candidates have worked with celebrities, billionaires, and royal families. They can pass background checks and come with many strong letters of recommendation."

The takeaways

Domestic staffing agencies serve many purposes:

• They save you time
• Employers get turnkey candidates
• They help households be compliant with the law
• HNW families get consulted by subject-matter experts
• You get access to the best of the best candidates that $50 "Confidential Employer" ads on Craigslist won't attract

There is, absolutely, a reason why Mercedes and BMW charge what they do. The old adage is still true: You get what you pay for.

High-net-worth families who want to hire domestic staff for their homes should consider investing in quality candidates who are trustworthy, dependable, and who will stay for years to come so you don't have a revolving door of employees.

For the families that are doing it right, we appreciate you. For the ones who have to learn a few hard lessons first, we will be here for you when you're ready.

Post Script: At least once a year, I hear stories of employers who hired staff online at bargain basement prices, and the staff member they hired stole all of their jewelry and disappeared less than a month after they were hired. 'Nuff said.