We had a nanny (two different ones, actually) from 1997 through 2008.
The first one, who was born in the US, was good about proactively taking the kids out and about on outings, but also did a lot of lugging them along on her own personal errands. Admittedly this is what a stay-at-home mom would do, so we didn’t worry too much about that.
She also had a lot of medical problems and was highly unreliable, and we found reasons to question her judgment. All of this contributes to why we only employed her for a bit over a year.
The second one was not as proactive about outings, though anything we suggested she do with them, she was happy to go along with. Reliability was less of an issue with her (she was often a little late getting to our house, but she usually at least showed UP). She did light housework (as in, kids’ laundry and later ours, some meal prep). Not a lot of child-enrichment activities, though we did start both kids in preschool by age 3.
She was an immigrant (though naturalized). Around here it’s very rare to find a US-born nanny. My own prejudice and bad experience, but around here, if someone is US-born, there’s a small part of my mind asking “what’s wrong with you? why are you willing to work this job which doesn’t pay much? can’t you get anything better???”.
One very hard part about having a nanny is that you’re at her mercy, schedule-wise. If she’s a few minutes late… so are you. If she gets up and is sick as a dog and can’t come to work, you have to cover at the last minute. If she has to leave early, you have to dash home. It’s not always terribly convenient!
Her daily schedule was something like 8:30 to 6 PM. We did our level best to be home promptly, recognizing that she had her own life (and probably wanted to get away from our hellspawn). We did pay overtime if we were stuck or had to work late or whatever (which was fairly rare). She also occasionally babysat the kids on the weekends when we wanted to go out - we paid that separately, in cash, and well over her regular hourly rate.
We did always give her at least 2 weeks off with pay (in addition to 10 holidays). And as another poster mentioned, we gave her extra cash at Christmas.
When the kids started school, we had a dilemma: let her go and put them in daycare, cut her pay because of the reduced hours, or keep paying her fulltime. We did the latter. This of course gave her rather a LOT of free time on our nickel, but we rationalized that 1) her expenses didn’t go down just because our need did, and 2) she was basically “on call” if one of the kids was sick and needed to stay home. Ultimately, we kept her on until we just couldn’t afford it any longer.