Why Are VAs So Expensive? December 16, 2008
Posted by Laura in Business Services, Company, Costs and Fees, Virtual Assistants.Tags: Laura A. Lee, VAS, VAs Compared to Employees, VASupports, Virtual Administrative Supports, Virtual Assistant, Virtual Assistant Costs
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When you take a few moments and consider what the actual cost of having an employee, you will see that having a VA is the way to go (see chart below).
You only pay for the time on your projects, not chatting with co-workers, bathroom breaks, or personal emails.
You don’t have to worry about taxes, insurance, benefits, etc as the VA takes care of all those costs themselves since they are a contractor.
According to VANetworking.com, a regular employee’s 8-hour day can be reduced to 3-4 hours with a VA.
How much work could you get done if you hired a VA for a full 40 hours a week instead of a regular employee? That’s easy – DOUBLE WHAT YOU’RE GETTING NOW!
VAs are often also more experienced in a variety of areas and have more flexibilities in the job duties you’d like accomplished.
Cost Comparison Employee Assistants
Hourly Rate $20.00 $30.00
Fringe Benefits @ 35% $7.00 $0.00
Overhead Rate @ 50% $10.00 $0.00
Total Effective Rate of Pay $37.00 $30.00
*Hours Per Year 2,080 hrs 480 hrs
TOTAL Annual Labor Cost $76,960.00 $14,400.00
That’s a savings of $62,560! What can you do with that kind of savings?
*Now, you may be asking why there is only 480 hours for the VA listed. Virtual Assistants are generally more experienced and more efficient than employees are; plus, you do not pay for breaks, co-worker chatting, or even bathroom breaks. You can devote far less time to the project to get the same results, only approximately 480 hours a year versus 2,080 for the employee.
