In the two years that I've been in business as a virtual assistant (VA) I've spent a lot of time explaining what a virtual assistant is - what they do and don't do and the benefits of using a virtual assistant as opposed to an employee. I decided to devote the month of July to getting into the habit of blogging regularly so I'm going to do a series on VA vs Employee. Since money is the bottom line for most people, Part 1 is about the cost effectiveness of using a VA.
Most people who are considering a VA may look at their hourly rate or monthly retainer fee and think the cost is too high, but actually you're saving over $60,000 a year by using a VA. Check this out before you dismiss the idea!!
A cost comparison for a full-time employee versus a Virtual Assistant
Most people who are considering a VA may look at their hourly rate or monthly retainer fee and think the cost is too high, but actually you're saving over $60,000 a year by using a VA. Check this out before you dismiss the idea!!
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
|
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