Wednesday, June 17, 2009

You Deserve A Raise Today


You deserve a raise.

Right now, after reading that first sentence, you are doing two things; 1. You are nodding your head, and, 2. You are now very interested in this article. Good, I'm glad I have piqued your interest. Because, seriously, you DO deserve a raise.

Daycare is serious business. We work long hours, accept mountains of responsibility, pay overhead, wipe poop, swab up puke, dodge balls of snot sneezed across the room, manage parents, run the business side and often have periods of little income. Such is the life of the self-employed daycare provider. On those points alone we do deserve a raise.

I was recently researching average Canadian annual salary and wage increases when preparing for this article. I already suspected that as home daycare providers we were well below the standard for annual increases but I was astonished to know by how much we are behind. Most daycare providers do not increase their fees each year. At best, we meekly send out a new contract once every two years with an piddly increase of one dollar per care day and hope to high heaven we don't ruffle any feathers. All the while the parents have been enjoying an annual increase each and every year.

Did you know that in Canada in 2008 the average annual increase for a non-unionized employee was 3.9 per cent? Or that in Ontario, minimum wage will increase from 2009 to March 2010 by 8 per cent? How much did your annual increase amount to last year? My guess is not much.

It's high time we started to ask for and demand what we deserve. It's bad enough that the job of childcare has always been one of demeaning compensation and little respect. There is no glory in being viewed as a home daycare provider. I could announce at a party that I am a politician and gain more instant respect then I would admitting that I am helping to shape tomorrow's leaders. We deserve more and dammit - it's time to get it.

I know in my area the average daily rate is around $35 a day. At a minimum of the national average of 3.9 per cent that would be a fee increase of $1.37 per day. And of course, one must not forget that the national average of increases is for those workers who go in, punch the clock, get a pay cheque on Friday and never look back at the doors that spit them out Friday at five o'clock until next Monday at nine. We don't have that luxury. We don't get to use the company toilet paper at no cost, or wash our hands in the company sink with the "free" company water. No, instead we pay for someone else to use those things. We also pay for someone else to eat our food, which invariably increases in price each year. My heat bill, hydro bill, phone bill, property tax, and cost of daycare supplies go up and up year after year. That guy working for his pay cheque does not have to factor any of those expenses into his annual increase. And I won't even get into what our fee increase should be if we took into account the eight per cent minimum wage inflation.

So, $1.37 a day? How many of you increased you fees by at least this amount each and every year? I'm going to guess that there are not a lot of us reading this post raising our hands right now. Most daycare providers I know are hesitant to raise their rates a dollar every two years let alone $1.37 or more every year. Why are we not doing this?

Why do we not feel worthy of a raise? Can you imagine a school teacher (who by the way earns an average of $75,000 a year in Ontario!!!) not getting an annual increase at contract renewal? Wow, we wouldn't have teachers sitting in classrooms if that happened. They would be outside every school waving signs to and fro if that were to occur. But we humble home daycare providers just sit back and bitch and complain that we make too little and pay out too much. It's our own fault. We have only ourselves to blame.

I've heard all the excuses......"the parents will leave", "I don't like confrontation", "I'm too afraid", yadda, yadda, yadda, blah, blah, blah.......

As a general rule I abhor unions. I view them as legal blackmailers who hold the social framework hostage when they don't get their way. But, they do work. Perhaps daycare providers need to take a lesson from them. Unions get what they want because they are united. They collectively agree to stand their ground and not give in. We should be doing this too. It would certainly be a lesson to the $20 a day provider down the street who learns you are filling up your daycare for double her fees.

I was once at a conference of non-daycare professionals and listening to a speaker whose topic was 'value and your self-worth'. What I took away from that hour was that there is perceived value in everything. And that, when you have markedly higher fees than existing similar businesses the general population perceives that your product or service must be superior. The same logic goes for those who mistakenly set fees too low. Most people, smart people, will assume there must be something wrong with the product or service. This philosophy is well known in marketing. If you don't believe me just google "perceived value" and investigate the matter for yourself.

As is my personality, my mind is always going mach speed. I am always thinking many months into the future. For weeks I have already planned out my new 2010 contracts and the fee increase that will accompany them when handed out to parents in December. My fees will increase by two dollars a day. And, because all of my families are part-time that will equate to an annual increase of $300 per child. And if one single parent complains about that pittance of a raise they can find themselves a new provider. If I am not worth an additional $300 over a two year time period (as I did not raise fees in 2009)then I have vastly over valued myself or the parents truly do not understand what it is I do all day.

I challenge you, today, to think about this. How much will your annual increase be next year? If it's anything more than zero I applaud you. And if it's zero you need to re-read this article.




For concerns, advice or suggestions I welcome your email at judytrickett@yahoo.ca

11 comments:

  1. I raised my rate in January. 5 dollars for my long time cliebnt...(I later let the parent go over other issues)
    I now have new clients. 2 sets of boys and in january the rate is going up again.

    I'd like make at least minium wage :)

    catsdogslizards.
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  2. I just stared doing home daycare in Feb. and had already made my mind up that I would be doing $1 increase every year. Why not? Daycares do it at least once a year, if not more often. So why shouldn't a home care provider.

    I don't think I will have a problem with the families that I have, but if they don't like it, well, they can look elsewhere....
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  3. I completely agree with you on this one. I feel I need to set my rates as everyone else in my neighbourhood to get clients, otherwise someone who doesn't know me from Adam has no qualms going to the cheaper provider around the corner kwim. I would love if we all worked together to get what we deserve...but it hasn't happened yet :(
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  4. Thanks for posting this!!! I've been running my daycare for a year, and it was a learning experience! I learned that I was giving away WAY TOO MANY free days (eg. Teacher's kids who are gone all summer also get 1 free sick day each month, and don't pay for any stat holidays. Same with part-timers...some months I was losing 400-500 dollars!!!). I'm revamping all my policies and increasing my fees by $2 per day (found out I'm charging a little under average and I definitely offer high quality daycare), and have been nervous about sending these letters out! Thanks for this b/c now I'm completely confident! Don't like it? Go somewhere else!!!
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  5. I am finally giving myself a raise come the fall. I gave my letter to the three families that this will affect. Family A has been with me for six years come the fall. Family B has been with me for two years this summer and Family C who I have mentioned in my comments many times I have known for about 6 years when they bought the house across the street rom us. I have watched their children for a few years off and on between mat leaves and quite part time.

    This family C who have the most children, I was dreading telling them about my changes. I knew that they would be the ones to complain if anyone would.

    Since I only see them very part time and in my home, people pay when they are here, not for a 'spot' (this is just the way things are done in my city) I gave them my letter and a week went by before they needed care. When the mom called the night before to make sure I had them on my calendar which of course I did, it's not rocket science you know, she mentioned my letter and asked if anyone had any issues with it. And I said no, none that I know of. Surprisingly, she went on to comment not on the pay increase but the days I am taking off come the new school year. Pay was not even mentioned so apparently life will go on, I will get a few extra dollars to cover all the insanely rising costs of everything in our rich oil town. Our average rate here is about $30 a day for one child which I will be raising my rates to. I've been at $25 for six years now, how many people at their jobs have not gotten a raise in six years?

    At one point in time I did raise my rate for two children in one family. It used to be $35 a day, then I upped it to $40. This fall it will be $45 for two, $60 for three which is still reasonable here and competitive too.

    I am simply thrilled since once again, it was mentioned by the mom of my gang across the street that gramma is indeed moving here this fall. Please please please let this be true, since my life will be a lot easier without these part timers. They are just too 'what about me' for their own good! Ooooh, now I'm off to change a poopy diaper, I don't get paid enough for this!
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  6. I need a raise, too... *sigh* I'm not earning beans.
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  7. I just recently raised my rates to $40.00 from $35.00, I have come to the conclusion, that I deserve a $5.00 raise every 2yrs. First I try it out on a set of new parents when they come to interview, and then I hit my long term parents with it. So far so good.
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  8. I agree as a previous HDCP. A group centre I know raised their monthly all day rate from 700 to 725 in January and will get another $25 rate increase in September to $750 a month (Toronto, non-profit, quality run daycare IMO). To translate, that works out to $34.09 a day for kids aged 2.5 to 6 years of age. Ratios range from 1:5 to 1:8 to 1:12 currently, depending on the age grouping. No unpaid days allowed at all for parents.

    Really $35 is quite reasonable for parents to pay. As a parent of 3 kids, I could not afford $105 a day for child care. All depends what view you are looking from as to if it's fair.

    I diagree that the average jow doesn't take into account those increases (tp, water, etc.) into his annual raise. Of course, their home exspenses also go up. And if EVERYTHING went up at the same rate, we'd be further in the hole as that's pre-tax income. And as we all know, most exspenses do go up each year (food, gas, maintence, hydro) for everyone, whether working in the home or not.

    LMM

    Bottom line is, give yourself an increase but I disagree with some of the comments made. Obviously if you can't get clients for what you are charging, you'll change those rates. Always worth trying!
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  9. Ah, but LMM...the average Joe may have to pay his own hydro, heat etc but I am paying for MORE water operating a business out of my home. I turn on the dishwasher more for the dckids dishes, I wash my own hands more after diaper changes, snot wipes, I wash their hands more. I use water to clean up after paint crafts. I use hydro to vaccum the glitter from their craft off the carpet. I crank up the heat in the winter so the basement is warmer for them where as I would tell my own kids to 'put on a sweater'. I have to buy supplies like toys, crafts, wipes, sunscreen and the list goes on. The average Joe does NOT have to factor those expenses into his raise. My hydro/water bill went up $35 a month when I started home daycare and with inflation I can imagine it's more like $50 now. My gas bill went up $10 a month! And, we won't even talk about my food bill - Ugh!I easily spend an extra $100 a week on food. So, I think you are wrong to say that the average Joe is the same as any business person who is self-employed. As the owner of my own business and being married to another self-employed individual I can tell you that it's not, not, not the same.

    AND, let's not forget that when average Joe gets a raise that company budgets that into thier plan. And how do you think they pay for that increase?? Yep, they raise the cost of their product or service. Why should we as home daycare providers have to bear the burden of Joe's raise when we buy a loaf of bread to support our own business when that loaf has gone up 25 cents??? Who is going to pay that extra 25 cents a day times the myriad of things we supply for each child? We should not have to bear that burden. If costs go up that are associated with our business then we should not feel bad to raise the cost of service to cover them.

    BTW.....did you know......that the inflation rate in Canada was nearly ZERO last month? Sounds good, eh? BUT the cost of food still rose 6.4%?????? So, if I have to feed my clients and that food increases by 6.4% why should I have to pay for that increase????? Did the grocery store see fit to cut me some slack and not charge me for the increase they incurred??? NOT!
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  10. We all have increases and not every employer gives raises annual. Whether it be "cost of living" or "merit" raises.

    The average costs as a HCCP can go up more than the "average joe" due to the nature of the job. As I said, ask for a raise and hey, if the parents pay it, WAHOO! If they can't afford it, they'll look elsewhere (maybe find your old rates or cheaper) and you (general you) will look for new clients. Also part of the business.

    IMO most people need raises whether they deserve it or not.

    LMM
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  11. I am hoping I can raise in January. The economy and housing market is so bad here that it is so hard to get new clients(we have so many illegal providers advertising on craigslist in my town. I have seen them advertising for ft care for 10 dollars a day)that I actually had to lower my rates.
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