Virtual assistants: cost advantages

May 24, 2023
Author
broadstone.io

Why a virtual assistant is cheaper compared to an employee

Working with virtual assistants instead of hiring one or more full-time employees can be cheaper due to several reasons. Here are a few considerations.

  1. Lower labour costs: Virtual assistants are typically hired on a contract basis or paid hourly, which means you only pay for the actual time they spend working on your tasks. In contrast, full-time employees require salaries or wages, benefits (such as healthcare, paid time off, and retirement plans), and potentially other costs like training, office space, and equipment.
  2. No overhead costs: When you hire a virtual assistant, you do not have to provide them with a physical workspace, office supplies, or equipment. They work remotely using their own resources, saving you expenses related to office rent, utilities, furniture, computers, and other infrastructure.
  3. No recruitment or training expenses: Hiring an employee involves a recruitment process that often includes advertising, interviewing, background checks, and other administrative tasks. Training a new employee also requires time and resources. With a virtual assistant, you can typically find qualified individuals through specialized platforms or agencies, eliminating recruitment efforts and reducing the need for extensive training.
  4. Flexibility and scalability: Virtual assistants offer flexibility in terms of working hours and workload. You can hire them for specific projects, on an as-needed basis, or for a fixed number of hours per week. This flexibility allows you to scale up or down according to your business requirements without the financial commitment of a full-time employee.
  5. Reduced management responsibilities: Managing a full-time employee requires supervision, performance reviews, and ongoing communication. Virtual assistants are often self-managed professionals who are skilled at working independently. This reduces the time and effort needed to oversee their work, freeing up your resources for other tasks.
  6. Access to specialized skills: Virtual assistants often have expertise in specific areas, such as social media management, graphic design, copywriting, or customer support. Instead of hiring a full-time employee who may have a broader skill set but limited depth in certain areas, you can engage virtual assistants with specialized skills when you need them, avoiding the cost of hiring multiple employees to cover different tasks.

While hiring a virtual assistant can be cost-effective, it is important to consider your specific business needs and the level of expertise required for the tasks at hand. There may be cases where hiring a full-time employee is more suitable, such as for long-term projects or roles that require a physical presence.

A numeric example: costs of our virtual assistant vs. those of a full-time employee

As the table shows, working with Broadstone.io offers at least 20% better direct costs. Working with us offers the opportunity to avoid overtime costs, overcome challenges related to sick leave, mitigate delays caused by capacity constraints, leverage a broader range of expertise, and minimize the potential financial burden and risks associated with terminating employment.

Cost component Broadstone.io virtual assistant Full-time employee
Hours allocated 50 hours 50 hours
Average paid leave - 50 hours * 10% = 5 hours
Breaks clocked but not worked - 50 hours * 5% = 2.5 hours
Hours compensated 50 hours 50 - 5 - 2.5 = 42.5 hours
Range of expertise As required ✓ As available
Gross salary - 50 hours * €15 / hour = €750
Direct overhead of employment - €750 * 10% = €75
Equipment and office space - €200
Cost of overtime - Additional hourly costs
Cost of weekend hours - Additional hourly costs
Total expense €950 €1,025 + overtime and weekends
Sick leave and other major interruptions - Insufficient capacities
Potential termination As required ✓ Termination risks and liabilities
Total hourly cost €950 / 50 = €19 €1,025 / 42.5 = €24

Data sources: Talent.com salary data; Teamstage.io time data; Boundless EOR employment cost calculation; Mitrefinch sick leave data.

Access to a diverse skill set

When you work with a company that offers a wide range of virtual assistants, you gain access to a diverse skill set that can cater to different tasks and projects. Each virtual assistant brings their own expertise and specialized knowledge in specific areas, such as copywriting, finance, social media management, customer support, graphic design, and more.

Task-specific expertise: With a company that has a diverse pool of virtual assistants, you can be matched with a VA who has proven experience and skills in the specific task or area you need assistance with. For example, if you require copywriting services for your website, you can work with a virtual assistant who excels in creating compelling website content.

Flexibility and scalability: By having access to multiple virtual assistants, you can easily scale up or down based on your workload and requirements. If you have a temporary surge in a specific task, such as a marketing campaign, you can utilize a virtual assistant who specializes in marketing and then adjust the team as needed once the campaign concludes.

Reduced reliance on a single individual: Relying on a single virtual assistant or a full-time employee for various tasks can put your business at risk if that person becomes unavailable due to illness, vacations, or other circumstances. By working with a company that provides a team of virtual assistants, you have a backup plan in place, ensuring that your tasks continue seamlessly even if one individual is unavailable.

Collaborative expertise: Working with a company that offers multiple virtual assistants enables collaboration among the team members. They can share their knowledge, exchange ideas, and provide valuable insights to enhance the quality of work. This collaborative approach can lead to improved outcomes and innovative solutions for your business.

Continuity and long-term support: As your business evolves, your needs may change. Working with a company that offers a diverse pool of virtual assistants ensures that you have access to ongoing support and can adapt to your changing requirements over time. You can easily transition between different virtual assistants or engage additional specialists when new projects or tasks arise.

Overall, partnering with a company that offers a wide range of virtual assistants with diverse skills and expertise allows you to tap into a talent pool tailored to your specific needs, ensuring high-quality and efficient support for your business.

By leveraging this approach, you can enjoy the benefits of specialized expertise, flexibility, continuity, and a collaborative environment that surpasses the limitations of relying on a single individual or hiring a full-time employee.

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