1. References - It is imperative that you speak with the candidate’s previous employers. Do it in person, if possible, as people are far more likely to give you candid feedback if they can see you. Take the time to properly inform yourself about the candidate or you will surely spend twice as much resolving the inevitable problems that arise from a poor choice.
2. Pay - Dealing with this issue is actually quite easy. Just be sure to clearly delineate, beforehand, all aspects of the nanny’s compensation package. Some items that should be addressed are pay rate, O/T determination, and who pays the taxes on the compensation.
3. Schedule - Do not expect your nanny to suspend her life to accommodate yours. Do expect to give the nanny every other weekend off. Establish a base number of working hours per week and set a rotating schedule that accommodates both parties. Also, determine what happens when the family and/or the nanny goes on vacation.
4. Responsibilities & Expectations - The primary responsibility of a nanny is to care for your children, not to clean your house. Certainly, you can expect that she clean up after herself and the children after lunch but do not expect that she will wash the dinner dishes after the children have been put to bed. Again, clearly defined expectations and responsibilities should be delineated beforehand.
5. Parenting Style & Discipline - Children require consistency. Discuss various situations, both good and bad, with the nanny to determine if the two of you are of the same mind regarding such things as bed times, disciplinary actions and rewards. This issue is the single most important point in determining whether the nanny is right for your family. Be sure to thoroughly discuss this issue.
6. Visitors/Room & Food Privileges - It is your home, but the nanny’s room is inviolate. Most employers are extremely uncomfortable allowing strangers into their home. This concern is understandable. Establish when visitors are allowed and the extent of their access to the rest of the house. In addition, it is your responsibility to feed your nanny. Be sure to accommodate her tastes in food as well as your own.
7. Alcohol/Smoking - This issue is a deal breaker for many employers. They insist that the nanny abstain completely even while they do not. Be sure to deal with this issue beforehand as it is not illegal to smoke tobacco or consume alcohol and you will have a difficult time resolving the issue later.
8. Training - Count on spending two or three days acclimatizing the nanny and your children to each other. It is important that you spend the time acting as a buffer between them until the nanny has established her authority.
9. Trial Period - Plan on paying for a two week trial period. Either party can terminate the contract for any reason during this time period. If the employer terminates the contract, the full two weeks salary is paid as compensation. If successful, then establish a 90 day probationary period. If the nanny is terminated, the severance pay will be one week’s pay. If she quits, there is no pay.
10. Written Contract - There are standard nanny contracts on the Internet. Download one. Determine a mutually agreeable set of conditions between you and the nanny. Then, and this is important, sign it and have the nanny sign it. If there are disagreements, and there will be, the two of you can reference this document to resolve the issue.

The key to a successful relationship with a nanny is determining beforehand the obligations and responsibilities of both parties. Then, memorialize these conditions in a contract. Finally, act professionally and in good faith and all should be well.