The Cost of Hiring…Virtually

One of my clients recently decided to jump into the world of going “Virtual”. This is a big leap for this particular client as they are accustomed to working out of an office all the time for the last 25 years. Although they had me, their trusty Virtual Assistant, they still had a desk to call home, a filing cabinet to stuff papers and a comfie place to meet with clients.

But as more and more of the workforce is going virtual and technology making it capable of meetings being held anywhere, this client has realized the HUGE cost savings of ditching the physical office for a virtual one.

An office lease, contents insurance, computer hardware upgrades, an IT person, a physical phone system and office help (on top of my services) adds up super quickly! The amount he will be saving per year is a small fortune. Add to that point that the thought of traveling more and not being chained to the desk 8 hours a day sounds enticing to most people.

So let’s take a look at the breakdown of a big portion of many entrepreneur’s costs: people. Without support people in place, you business will never grow. So how can virtual help be cheaper? I’ll show you.

Here is a cost comparison courtesy of my friends at the Virtual Assistant Networking Association.

Full-time Employee vs a Virtual Assistant Cost Comparison

Want to SAVE over $60,000 in business expenses this year? If you answered yes, read on …

A cost comparison for a full-time employee versus a Virtual Assistant

COST COMPARISON
Full-time
Employee
Virtual Assistant
Hourly Rate of Pay
$20.00
$35.00
Fringe Benefits @ 35%
(Health/Dental/Life Insurance, Retirement Plans)
7.00
None
Overhead Rate @ 50%
(Office Space, Equipment & Office Supply expense, UI Insurance, Worker’s Compensation, Overtime Pay, Administration Costs)
$10.00
None
Total Effective Rate of Pay
$37.00
$35.00
**Hours Per Year
2,080 hrs.
480 hrs.
TOTAL Annual Labour Cost
$76,960.00
$16,800.00

Difference = $60,160.00 per year

By hiring a Virtual Assistant…
You SAVE over $60,000.00 per year!

Although the Virtual Assistant’s hourly rate is more than the employee’s rate in the first place, you save the cost of benefits and overhead that would have to be applied to the new employee’s wage. And, because Virtual Assistant’s are usually more experienced, more efficient, and better connected than the employee, you’ll need to devote far less time to the project to get the same results, only 480 hours a year versus 2,080 for the new employee.

**Remember, with a Virtual Assistant, you only pay for the time on task by the minute! No more paying for socializing, hour long lunches or frequent trips to the washroom.

Your employee’s 8 hour day can be crunched into 3-4 hours with a Virtual Assistant.

Simply put, you should contract with a Virtual Assistant because it’s more cost-effective and Virtual Assistants go above and beyond the normal assistant’s duties to impact your own productivity. No task is too big or small for a Virtual Assistant to handle. Even if you only have 1 hour of work a month for a Virtual Assistant to do, a VA can (and will) do it.

*Souce: Virtual Assistant Networking Association Cost Comparison
The Largest Global Network Online for Successful and Aspiring Virtual Assistants

 

Leave a Reply

Your email address will not be published. Required fields are marked *