Has your business grown to the point where you are looking to employ someone to help? Perhaps you are looking for a virtual assistant?
Either way, the cost is an important factor when making your decision to employ or outsource.
Employment is a traditional business practice but since the age of technology it’s no longer the most cost effective practice.
One of my clients, Sally, recently employed a lady to help her in the office. For this role,employment was the better option. Employment came with some issues she was not prepared for:
- Sick leave: Sally still had to pay her even though she wasn’t there doing the work. (She had to try to fit their workload into her already busy days.)
- Having enough work: Sally had to keep finding work for her to perform during the quiet periods. This had a big impact had on her own workload.
Looking at this from the budget point of view, employment impacted Sally’s bottom line…hard. Comparing Sally’s costs to my business, my contractors work out to be more affordable and productivity consistently higher.
Why would you hire a VA at $65 per hour over an employee at $25 per hour? Let’s take a look at the numbers:
Business owner, Veronica, needs to employ an office manager for her office. She has heard about outsourcing from her online networking group. She doesn’t understand how this would work for her business or how hiring a virtual assistant will save her money.
Here is an example: Veronica is looking to employ an office manager on $40k per annum plus Kiwisaver, ACC, annual leave, sick leave, bereavement leave, stationery, copy paper, laptop, software, desk, chair, power (let’s say the real annual cost was conservatively $45k).
Instead, Veronica hires Betty the VA for 10 hours per week at $65 per hour. Betty is able to complete all of the 40-hour role in the 10 hours as she has streamlined some of the processes.
Because Veronica has full-time access to Betty, it feels like she still has a full-time person but now only paying for the hours worked on her tasks. Betty’s time is 100% productive.
Veronica hired a virtual assistant company with a team of VA’s which means she not only gets Betty but access to the whole team. As Project Manager, it’s Betty’s role to manage the team and ensure the work is done to Veronica’s requirements.
That’s a great benefit for Veronica as she gets access to other skill sets without the need of employing more staff.
But what do the numbers look like?
Veronica’s annual cost is now 10 hours x $65 x 12 months = $33,800 – that’s an annual saving of $11,200!!!
How can a remote VA do the work remotely?
- Switch your landline to divert to a mobile phone that you can provide to your VA.
- Move your files into cloud storage such as Dropbox, One Drive, G Drive.
- Video meetings using apps such as Zoom, Skype allow remote members to attend staff meetings.
If you still have questions about outsourcing, please read our FAQ’s or get in touch with us.