How to Find a Great Nanny

Decide if you want your nanny to live with you or not--there are potential benefits and drawbacks to both choices.

Contact local nanny agencies. Discuss your requirements and find out what's involved in the placement process. Ask how background checks are done and how applicants are screened. Find out what the fee schedule is and what the cancellation fees are.

Read up on prospective candidates. Ask for re'sume's, references and evidence of background checks.

Schedule in-person interviews. Go over your job description, air any concerns you have, and ask each applicant to do the same. Discuss potential behavioral and discipline issues to get a feel for how various situations would be handled and how each potential nanny would respond to your child's disposition. Watch how each candidate interacts with your child, and how your child responds to him or her. Discuss a few hypothetical situations that require good judgment and see how each applicant responds.

Call the references provided and have an honest conversation about the prospective nanny. Most parents have similar concerns for their children and are happy to discuss their experiences.

If you've met your match, call the agency to arrange for a contract and pay your final fee. Most agencies have a trial period of five days or so before finalizing the contract.

Alternatively, advertise for a nanny yourself to avoid agency fees. You'll save money, but you'll have to deal with the phone calls, background checks, interviews and contract issues yourself, which requires considerable time and effort. Agencies have procedures in place in the event a nanny doesn't work out; find out what they are.

Consider a nanny-share if footing the costs alone is too difficult and you don't require a live-in nanny. See How to Find Fabulous Childcare.