Have you ever really thought of why a virtual assistant is the better option than hiring an employee? Take a look at this cost comparison…
| COST COMPARISON |
Full-time
Employee |
Virtual Assistant
|
| Hourly Rate of Pay |
$20.00
|
$35.00
|
| Employee 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 Labot Cost |
$76,960.00
|
$16,800.00
|
Difference = $60,160.00 per year
By hiring a virtual assistant you save over 60,000 per year!
Although the Virtual Assistant’s hourly rate is more than the employee’s rate in the first place, you save the cost of benefits and overhead that would have to be applied to the new employee’s wage. And, because Virtual Assistant’s are usually more experienced, more efficient, and better connected than the employee, you’ll need to devote far less time to the project to get the same results, only 480 hours a year versus 2,080 for the new employee.
Simply put, you should contract with Task Guardian because it’s more cost-effective and we go above and beyond the normal employee’s duties to impact your own productivity. No task is too big or small. Even if you only have 1 hour of work a month for a Virtual Assistant to do, a VA can (and will) do it.
*Souce: Virtual Assistant Networking Association Cost Comparison
The Largest Global Network Online for Successful and Aspiring Virtual Assistants
I agree with your comparison as we’ve refocused on hiring virtual assistants lately. Before, when we didn’t mix up a little bit of outsourcing in our business we’ve spent around 500k for the salary alone and it was really a big amount of money to invest. Just this year when we tried freelancing, we saved around 150k for the salary as most of our virtual assistants were priced at 2-4$/hour. We all got them from Staff.com, our major outsourcing partner.
Thanks for your input, Jim! I’m always so excited when I’m able to save clients money from simply eliminating overhead and benefit costs! I hope one day you consider me for your next VA project!