The hot topic debate on whether it is beneficial to hire a freelance virtual assistant vs. hiring an employee is a worthwhile discussion.
It can impact major aspects of your business; your budget, productivity, and growth. Here is what you need to know to make a wise decision for your business.
Virtual assistants are different from employees. How?
Let's explore these differences together! Freelance virtual assistants and traditional employees can offer many benefits and may have some drawbacks. There are differences in cost, flexibility, and availability. Which option will help your business thrive?
What are some differences?
First, the most significant difference between hiring a VA (virtual assistant) and a traditional employee; is cost. A VA is much more cost-effective than a full-time employee.
Next is flexibility. A VA can have flexibility with their schedule. They could work evenings, be available for holidays, and require less time off.
On the other hand, a traditional employee will usually have a set schedule within business hours, typically 9-5.
Lastly, location! You have the exciting advantage of choosing a VA from around the world! Many are in other time zones or maybe in your hometown. These opportunities could help increase your productivity.
A traditional employee would need to have a functioning office for them to perform their job.
Advantages and Disadvantages: Virtual Assistant & Employee
Advantages of a VA
VAs have a variety of skills that can be helpful to any size of business.
Administrative tasks:
scheduling appointments
managing emails
creating reports
handling customer service requests
research
data entry
Creative Tasks:
creative and innovative ideas
help with content creation
provide social media support
They are a great resource for small businesses looking for additional help without having to hire full-time staff. Flexible payment options give a small business owner greater access and the ability to stay on budget.
Disadvantages of a VA
Keeping track of hours could be unreliable. I recommend researching time trackers to use with your virtual assistant. They are a reliable and easy way to see how many hours your VA is working.
A VA may have technical difficulties. These are out of your control. However, they are also not your responsibility. These technical difficulties could cause lost productivity.
In contrast to face-to-face employees, your VA is a remote worker. A time zone difference could present difficulties with immediate communication.
Advantages of a Traditional Employee
Having a traditional employee allows you to see their work and productivity in person. You can keep track of areas that need improvement and address them promptly.
Some employers enjoy the workplace experience. It can build loyalty with employees, but this is more difficult to do remotely.
Disadvantages of a Traditional Employee
It is a substantial investment.
Building
Training
Benefits
An employee may expect to have a fixed set of tasks. They may not be available to easily accommodate last-minute changes if the business operations depend on an established schedule. As a result, work quality may suffer.
Hiring a traditional employee can take time and be costly. Promoting ads, recruiting fees, and training costs add up quickly!
I'm going to break down the biggest difference a little more... cost.
Cost: Virtual Assistant Vs. Employee
Virtual Assistant
The cost difference between contracting a virtual assistant and hiring a full-time employee can be significant.
A VA is typically a more
cost-efficient option for businesses that need to outsource specific tasks or projects that do not require a full-time employee.
They are often paid at an hourly rate, so businesses only need to pay for the time they use, rather than the salary of a full-time employee. Another option is project-based pay, where you pay only for the project. Not for the hours worked on the project.
This can be a great cost-saving option for businesses that need to outsource specific tasks.
Traditional Employee
Employee costs are broken down into three main categories: compensation, benefits, and payroll taxes.
Compensation includes wages, bonuses, commissions, and other types of remuneration.
Benefits may include health insurance, retirement contributions, disability insurance, and other employee welfare programs.
Payroll taxes are taxes and contributions that are deducted from an employee’s wages and remitted to the government.
Some employers may need greater access to their employees; they may prefer the face-to-face experience. In those cases, the cost may not be a concern.
Bottom Line?
I need my calculator...
For a full-time, in-house employee at a rate of $15.00 per hour, working 2,080 hours a year:
Annual salary: $31,200
Payroll taxes at 12%: $3,744
Benefits at 30%: $9,360
Paid leave at 13%: $4,056
Admin costs at 7%: $2,184
Annual Total: $50,544
For a freelance virtual assistant at a rate of $19.00 per hour, working 2,080 hours a year:
Annual salary: $39,520
Payroll Taxes at 12%: $0
Benefits at 30%: $0
Paid Leaves at 13%: $0
Admin Costs at 7%: $0
Annual Total: $39,520
*These are examples. Rates and percentages may differ.
Conclusion
Before deciding which is best for your business, determine what specific projects you need to complete. Consider your budget, resources, and timeline to determine which option is best for you.
Review the pros and cons of each option. Virtual assistants are usually more
cost-effective and typically can manage a range of tasks and projects. Employees may provide a more reliable and long-term solution, but they can be more expensive and require more time and energy to manage.
Ultimately, which option is best for your business will depend on your specific needs and goals. I hope this information helps you in making that decision.
"You might think you can't afford a VA if you have a start-up, or don't need one if your company is already established, but VAs can be game changers for almost any business. After all, there is truth in the saying, "Time is money." If you spend more time supporting your business instead of building it, you are not maximizing your efforts."