Tuesday, July 1, 2014

VA vs Employee-Part 1-Saving $60,000 a Year!

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
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

*Souce: Virtual Assistant Networking Association



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