Cost Comparison of VA vs Temp vs Employee

Why should I hire a Virtual Assistant?

Virtual Assistants provide flexible, professional, reliable and affordable help to businesses.  We perform the key administration duties which make your business profitable, thus freeing your time to work ON the business, rather than IN it.  What is the cost comparison of using a VA vs using a temp or on site employee?

Think about the hourly rate you charge your clients – is it really worth you spending two frustrating hours working on a presenting a professional-looking document, stuffing envelopes or typing a report?

If you find yourself working long hours, feeling stressed and missing deadlines, you need help!

Employment – a cost comparison

  • Legislation: In the past 7 or 8 years the UK government has introduced over 100 new laws regarding employment legislation. These include new minimum wages; new holiday and sick leave allowances; parental, maternity and paternity leave; disciplinary procedures; health and safety and pension provision – to name a few.  The burden of keeping up to date with these lies firmly on the shoulders of the small business owner.
  • Hidden costs: On top of that you’ll need to supply equipment, workspace, HR admin (like payslips, PAYE etc.) and cover for when that employee is taking annual leave, off sick, on lunch, having a personal problem etc. A recent study also suggests that the average amount of time an employee wastes a day (not including lunch breaks etc.) is 2.09 hours a day!
  • Hiring costs: All of this depends on you being able to find someone reliable in the first place – in the UK the average cost per hire is £1,700 and it usually takes 1.5 months.

The cost of doing the work yourself – a cost comparison

As small business owners we often start from the perspective of “doing it ourselves” as a business concept.  We highly recommend reading “The E Myth” by Michael Gerber.

  • Play to your strengths – Your time is valuable to your business, think of your hourly rate you charge clients, now is it really worth spending two hours mailing out 300 sales letters? Whilst you may be an expert in your field, let the professionals do the admin.
  • Improve cashflow – Because your marketing and credit control is being done regularly you’ll get money in faster and improve your cashflow. These functions should be as important to your business as doing the actual work itself.
  • Assess the value – Assess the value of your time doing a task over what it would cost to outsource. We recently had a client call us up to ask for some help with a PowerPoint presentation after she had spent two hours battling with it.  We made the changes and sent it back 10 minutes later at a cost of under £10 – her hourly rate is somewhere in the region of £75 and yet she had wasted two hours (and £150) instead of outsourcing it to “save” £10!
  • What else could you be doing? – A lot of our clients use us to free their time for other projects. One of our clients recently took a 3 month holiday in New York, without any of his clients realising, as we were filtering his emails and answering his phone during that time.  Another of our clients went on a business development trip to Paris safe in the knowledge that the leads she was generating would be processed by us while she was away.

Is my Virtual Assistant a temp?

Traditional on-site temps have minimum daily charges and often aren’t available on an on-going basis.  You also need to provide equipment, premises, insurance and training for them each and every time they work for you.

Virtual Assistants work off site, have a high level of professionalism and common sense, and are used to working with a variety of small businesses.  Although we can be used as a temp service, we offer greater flexibility and expertise than you would normally get from a temp.

Cost Comparison

Your Virtually Sorted Assistant can complete any task a normal PA or secretary would complete including arranging travel, sending letters, formatting documents, spellchecking, arranging personal tasks and helping with marketing.  The only thing we haven’t quite mastered is virtual coffee…We put together a quick cost comparison of all the different options:

Cost comparison - VA vs employee

I want a VA – how do I hire one?

Email and we’ll get you started!