A family in Chicago called us last month excited about a house manager candidate. Perfect experience, great references, good cultural fit. They made an offer. She turned it down.
Why? The benefits package was terrible. Base salary was competitive, but no health insurance, one week PTO, no retirement contribution. She took another job that paid $5,000 less annually but offered comprehensive benefits.
At Seaside Staffing Company, we watch families lose great candidates over benefits all the time. They focus on salary and forget that professional household staff evaluate total compensation, not just base pay. An estate manager making $120,000 with no benefits is worse off than one making $110,000 with full health insurance, three weeks PTO, and a retirement match.
Benefits matter. Not just for attracting good people, but for keeping them. The difference between one year of turnover and five years of stability often comes down to whether someone has health insurance and decent time off.
Why Benefits Matter More Than You Think
Professional household staff in Chicago and other major markets have options. The good ones especially. An experienced house manager or private chef can choose between multiple positions. What makes them pick one over another when salaries are similar? Benefits.
Health insurance is huge. If you’re not offering it, someone else is. And for household staff who often work as W-2 employees without access to group corporate plans, individual health insurance is expensive and complicated. Offering coverage isn’t just nice, it’s a competitive necessity.
Time off matters too. People need breaks. They need vacation. They need to see their own families, handle their own lives, rest. One week of PTO isn’t enough for a professional working full-time. That’s saying “we don’t value your life outside work.”
Retirement contributions signal that you see this as a real career, not just a job. Even a small match says “we’re invested in your future.”
At Seaside Staffing Company, we track why candidates turn down offers. Benefits are in the top three reasons, along with salary and culture fit. Families who think they can skip benefits and still attract top talent are wrong.
We placed an estate manager in Chicago’s Lincoln Park last year. Two families made offers the same week. Family A offered $125,000, no health insurance, two weeks PTO. Family B offered $115,000, full health insurance, three weeks PTO, 3% retirement match. She took Family B without hesitation. The total compensation value was higher even though the base salary was lower.
Health Insurance: What It Actually Costs to Provide
Let’s talk real numbers. Providing health insurance for a household employee costs families roughly $8,000 to $15,000 annually, depending on the plan and whether it’s employee-only or includes family coverage.
That sounds like a lot. And it is. But consider what it’s worth to the employee.
Individual health insurance on the marketplace for a healthy 40-year-old might run $400-600 monthly for decent coverage. That’s $4,800-7,200 annually. For someone with a family or pre-existing conditions, it could be double that. And marketplace plans often have high deductibles and limited networks.
When you provide health insurance, you’re giving your employee something worth $5,000 to $15,000+ in real value. That’s significant compensation that doesn’t show up in their paycheck but absolutely factors into their decision to stay or leave.
Families in Chicago sometimes balk at the cost. “Why should I pay $12,000 a year for their health insurance when I’m already paying them $100,000?”
Because their $100,000 salary has to cover rent (expensive in Chicago), food, transportation, taxes, and everything else. If they’re also buying their own health insurance, that $100,000 becomes $88,000 in practical buying power. Suddenly your competitive salary isn’t so competitive.
The other reality is that people without health insurance put off medical care. They let small problems become big problems. Then they’re suddenly out for weeks dealing with something that could have been caught early with regular doctor visits. You end up paying for it in lost productivity and emergency coverage.
At Seaside Staffing Company, we help families understand the math. Yes, health insurance costs money. But so does turnover. Replacing a house manager costs at least $10,000-15,000 in agency fees, lost productivity, and training time. If offering health insurance keeps someone for five years instead of one year, you’re way ahead financially.
What Health Insurance Is Worth to Staff
From the employee perspective, health insurance is often the deciding factor in taking or leaving a job.
A private chef we worked with turned down a $90,000 position in Chicago’s Gold Coast because there was no health insurance. She was diabetic and needed regular care and medication. Without insurance, her medical costs would have eaten up $15,000+ annually. The job wasn’t actually worth $90,000 to her, it was worth $75,000. She took a different position at $85,000 with full insurance. Better deal.
For household staff, especially those supporting families or dealing with any health issues, insurance isn’t a luxury. It’s a necessity. They’re doing the math just like employers should be. Total compensation matters more than base salary.
Some families try to split the difference by offering a “health insurance stipend” instead of actual coverage. They’ll add $500 or $800 monthly to salary and tell employees to buy their own insurance. This doesn’t work as well as you’d think.
First, buying individual coverage is a pain. It’s complicated, the plans are confusing, and it takes time. Second, $500 monthly doesn’t always cover a decent plan, especially with family coverage. Third, it’s taxable income, so the employee nets less than $500 after taxes. They’d rather have employer-provided insurance.
If you absolutely can’t provide health insurance due to budget constraints, at minimum offer a realistic stipend, be transparent about it, and understand you’ll have a harder time competing for top candidates.
PTO Expectations by Role and Experience
How much time off should you offer household staff? It varies by role and experience, but here are the standards.
For entry-level or less experienced staff, two weeks PTO is minimum. Less than that and you’ll struggle to hire anyone professional. Some families offer one week and act surprised when nobody wants the job. One week is insulting.
For experienced professionals like estate managers, house managers, and private chefs, three weeks is standard. Four weeks is competitive. Five weeks is generous but not unheard of for very senior staff.
Nannies typically get two to three weeks depending on experience. Family assistants usually get three weeks. Personal assistants and housekeepers usually get two to three weeks.
Live-in staff sometimes get slightly more PTO than live-out staff because they need more separation from work. If someone lives where they work, they need real breaks.
At Seaside Staffing Company, we’ve noticed that families who offer generous PTO actually get more out of their staff. People come back from vacation refreshed and productive. People who never get a break burn out and either quit or start phoning it in.
A family in Chicago’s Lakeview offered their house manager four weeks of PTO. The house manager took one week every quarter. She came back each time energized and caught up on her own life. She’s been with the family five years. That’s rare. The PTO is part of why.
Compare that to a family in Evanston who offered their estate manager two weeks and begrudged even that. He took his two weeks, came back stressed because he’d spent it catching up on personal tasks he couldn’t do otherwise, and quit six months later for a job with better time off. The family lost a great employee over PTO policy.
How PTO Varies by Experience and Seniority
The more experienced and senior your household staff member, the more PTO they should get.
Someone who’s been in private service for 15 years and is managing a complex estate deserves more time off than someone in their first house manager role. Seniority should be rewarded.
Some families structure it as increasing PTO with tenure. Start at three weeks, increase to four after two years, increase to five after five years. This rewards loyalty and gives people something to work toward.
This is especially important for roles like estate managers who handle significant responsibility. These people are on call mentally even when they’re not physically working. They need real time to disconnect.
We placed a chief of staff with a family in Chicago who negotiated four weeks PTO plus the week between Christmas and New Year’s as additional paid time off. The family hesitated, worried it was too much. We explained that this was someone managing their entire household operations, multiple properties, and staff. That level of responsibility requires real recovery time. They agreed. Three years later, that chief of staff has never burned out and the family’s household runs flawlessly.
Retirement Contributions: Small Investment, Big Loyalty Impact
A lot of families skip retirement contributions for household staff. This is short-sighted.
Even a small match, like 3% of salary, makes a meaningful difference to employees. It signals that you see their work as a real career, not just a job. It shows you’re invested in their long-term wellbeing.
For a house manager making $100,000, a 3% match is $3,000 annually. That’s meaningful to the employee but not budget-breaking for most families who can afford a $100,000 house manager.
Some families offer Simple IRAs or 401(k)s with a match. Others just contribute to the employee’s IRA directly. The method matters less than the fact that you’re doing it.
At Seaside Staffing Company, we’ve seen retirement benefits make the difference in retention. A private chef in Naperville was considering leaving after three years for a position that paid $10,000 more. The family he worked for offered to add a 5% retirement contribution (about $5,000 annually) if he stayed. He stayed. The family kept an excellent chef who knew their preferences and kitchen. The chef got meaningful retirement savings. Everyone won.
Household staff often don’t have the corporate retirement benefits that executives take for granted. Many have gaps in their retirement savings. Helping them save for the future builds tremendous loyalty.
The Hidden Cost of Poor Benefits
What happens when you don’t offer competitive benefits? Turnover.
Replacing household staff is expensive. If you use an agency like Seaside Staffing Company, there’s a placement fee. If you try to hire on your own, there’s the time cost of posting jobs, reviewing applications, conducting interviews, checking references. Then there’s the productivity loss while the position is vacant. Then there’s training time for the new person.
All told, replacing a household staff member costs somewhere between $10,000 and $25,000 depending on the role and how you hire. For senior positions like estate managers or chiefs of staff, it can cost more.
If poor benefits cause you to replace someone every year or two instead of keeping them for five or ten years, you’re spending way more in turnover costs than you would have spent on better benefits.
A family in Wilmette went through three housekeepers in two years. Each time, they offered minimal PTO and no benefits. Each time, the housekeeper left for a position with better benefits. The family spent thousands in recruitment time and agency fees. They finally listened to us, offered competitive benefits to the fourth housekeeper, and she’s still there four years later.
The math is simple: invest in retention or pay for turnover. Retention is cheaper.
What Competitive Benefits Actually Means in Major Markets
In expensive markets like Chicago, competitive benefits are non-negotiable for professional household staff.
Minimum competitive package: Health insurance (employee coverage at least), two to three weeks PTO, paid major holidays, some sick leave separate from vacation.
Strong competitive package: Health insurance (with option for family coverage or stipend), three to four weeks PTO, paid holidays, sick leave, small retirement contribution.
Excellent package: Health insurance (family coverage), four weeks PTO, paid holidays, sick leave, 3-5% retirement match, professional development budget, annual bonuses.
What you offer should reflect the role and your budget, but it also needs to reflect market reality. In Chicago, experienced estate managers expect health insurance and three weeks PTO minimum. If you’re not offering that, you’re competing with one hand tied behind your back.
At Seaside Staffing Company, we educate families about market standards constantly. They want to hire the best but offer below-market benefits. It doesn’t work. The best people have options. They take jobs with competitive total compensation.
Benefits for Live-In vs. Live-Out Staff
Live-in and live-out staff should both receive benefits, but the structure might differ slightly.
Live-in staff are receiving housing as part of compensation, but that doesn’t mean they shouldn’t get health insurance and PTO. Some families think “we’re providing housing, that’s enough.” It’s not.
Housing is valuable, yes. But it doesn’t cover medical care or give someone a break from work. Live-in staff still need health insurance, time off, and ideally retirement contributions.
The one area where live-in and live-out might differ is housing-related benefits. Some families offer live-out staff a housing stipend. That’s a benefit that live-in staff don’t need.
But core benefits like health insurance, PTO, and retirement should be similar regardless of living arrangement.
We worked with a family in Oak Park who had a live-in estate manager. They provided a beautiful suite, covered utilities, provided meals. But they offered no health insurance and minimal PTO. The estate manager left after 18 months for a live-out position with lower base salary but full benefits. She valued her health and time off more than free housing.
Required Benefits vs. Optional Benefits
Some things you legally have to provide. Others are optional but wise.
Required by law: Compliance with employment law (W-2 status if applicable, proper tax withholding), workers’ compensation insurance in most states, overtime for non-exempt employees, compliance with any relevant Chicago or Illinois employment regulations.
Standard/expected benefits: Paid time off (amount varies), paid major holidays, sick leave (sometimes legally required depending on state/city).
Competitive benefits: Health insurance, retirement contributions, professional development, bonuses, additional perks.
At minimum, comply with the law. Beyond that, offer enough to be competitive in your market for the level of talent you want. The better the benefits, the better the candidates you’ll attract and retain.
When to Offer More Benefits to Retain Someone Exceptional
Sometimes you have someone so good that you should proactively increase benefits to keep them.
Your house manager has been with you three years. She’s incredible. You don’t want to risk losing her. Consider adding benefits before she even asks. An extra week of PTO. A retirement contribution if you weren’t offering one. A raise that includes a health insurance upgrade.
Proactive retention beats reactive scrambling. Don’t wait until someone tells you they’re looking at other opportunities. If you have exceptional household staff, invest in keeping them.
A family in Chicago’s Lincoln Square had an amazing private chef for four years. They heard through the grapevine that another family was trying to recruit him. Instead of waiting to see what happened, they increased his PTO from three weeks to four, added a 4% retirement match, and gave him a $5,000 bonus. The chef stayed. He’s now been with them seven years. The family avoided losing someone irreplaceable.
At Seaside Staffing Company, we remind families that investing in retention is always cheaper than replacement. If you have great people, take care of them. Benefits are one of the easiest ways to show you value them.
Benefits aren’t optional extras. They’re fundamental to professional household employment. Health insurance, adequate PTO, retirement contributions, these things keep good people working for you long-term.
Families who try to save money on benefits end up spending it on turnover. Families who invest in competitive benefits build stable, loyal household teams that stay for years.
Think about total compensation, not just salary. Think about what benefits are worth to employees, not just what they cost you. Think about retention, not just hiring. That’s how you build a household staff situation that actually works long-term.
