Cost Comparison: Full-time Employee versus Virtual Assistant
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
By hiring a Virtual Assistant…
You SAVE over $60,000.00 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.
**Remember, with a Virtual Assistant, you only pay for the time on task by the minute! No more paying for socializing, hour long lunches or frequent trips to the washroom.
Your employee’s 8 hour day can be crunched into 3-4 hours with a Virtual Assistant.
Simply put, you should contract with a Virtual Assistant because it’s more cost-effective, and Virtual Assistants go above and beyond the normal assistant’s duties to impact your own productivity. No task is too big or small for a Virtual Assistant to handle. Even if you only have 1 hour of work a month for a Virtual Assistant to do, a VA can (and will) do it.
