888.827.9129
How You Save Money by Hiring a Virtual Assistant - Breaking Down the Costs
By Amber Frank
Being in the virtual staffing business, we at Team Double-Click® are often asked, “why should I hire a virtual assistant and how would it benefit me?” The answer is simple: you will save money (nearly 50 percent) and time.
I don’t think it’s any secret that when an employee is in the office 40 hours a week, that they are not actually working all of those hours. They have numerous distractions a day from children and spouses calling to chatting with their coworkers. A study by Basex, a New York research firm, found that office distractions total 2.1 hours a day for the average employee – more than 10 hours and 25 percent of a regular workweek. That doesn’t even take into account the amount of time an employee spends on personal tasks at work. That is time that the employer is paying them for. With virtual staffing, you only pay for the exact amount of time your virtual employee works.
In addition, you don’t pay for office expenses such as utilities, desk, chair, computer, and the office space itself.
Then there are benefits expenses including, vacation time, sick time, and insurance coverage. With virtual staffing, the virtual employee (who is an independent contractor) is responsible for those costs. With a virtual employee, you pay for their hourly rate and reimburse for any costs incurred for the job (mailing costs, etc.)
As you can see from the charts below, hiring a virtual employee is extremely economical for your company.
| Wage | $15/hour x 40 hr/week | = $31,200/year |
| Social Security | (.062 x 31,200) | = $1,934/year |
| Medicare | (.0145 x 31,200) | = $452/year |
| Workers comp | (.15 x 31,200) | = $4,680/year |
| Sick time | 1 week/year | = $600/year |
| Vacation time | 2 weeks/year | = $1,200/year |
| Health Insurance | Average | = $7,800/year |
| FUTA | (.008 x 7,000) | = $56/year |
| Cost of hiring | According to Business Week | = $3,270/year |
| Office distractions* | = $8,190 per year | |
| Office utilities | $300 per month | = $3,600/year |
| Computer | Computer for the assistant | = $1,000 |
| Desk and chair | Modest desk and chair | = $700 |
| Add’l phone line | Phone line install & monthly charges | = $1,300 |
| Office space | Moderate office $900/month | = $10,800/year |
| Total | = $73,782 per year | |
| Or | = $35.47 per hour |
*A study by Basex, a New York research firm.
| Wage | $24.86/hour x 30 hr/week | = $38,782/year |
| Social Security | N/A Independent Contractor | = $0 |
| Medicare | N/A Independent Contractor | = $0 |
| Workers comp | N/A Independent Contractor | = $0 |
| Sick time | N/A Only Pay for Time Worked | = $0 |
| Vacation time | N/A Only Pay for Time Worked | = $0 |
| Health Insurance | N/A Independent Contractor | = $0 |
| FUTA | N/A Independent Contractor | = $0 |
| Cost of hiring | Team Double-Click® requires no start up payment | = $0 |
| Office distractions* | Working from home there are no office distractions | = $0 |
| Office utilities | N/A Independent Contractor – they pay their own utilities | = $0 |
| Computer | N/A Independent Contractor – they buy their own computer | = $0 |
| Desk and chair | N/A Independent Contractor – they buy their own desk and chair | = $0 |
| Add’l phone line | N/A Independent Contractor – they pay for their own phone | = $0 |
| Office space | N/A working from home | = $0 |
| Total | = $38,782/year | |
| Or | $18.65/hour |
*Workweek is listed as 30 hours because Team Double-Click® only charges for time worked; the Virtual Assistant would still be on call 40 hours.
When all is said and done, you spend nearly double the amount for an in-house employee than for a virtual one.
Time is money. Hire a virtual employee and save on both.
Team Double-Click® provides virtual administrative assistance businesses. Visit Team Double Click’s Web site at www.teamdoubleclick.com or phone 888.827.9129. Click to receive your free report, 101 Ways To Work With A Virtual Assistant.
