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Virtual Assistant vs. Employee Comparison Chart
Comparing the cost differences between a Virtual Assistant working as an independent contractor part-time and an Executive Assistant, a permanent full-time employee, will lead to very surprising bottom line for many business owners.
Sampling of
Estimated Annual Costs |
Independent Contractor
Virtual Assistant
$50.00 per hour
$50x40*x12=
$24,000 per year |
Permanent Employee
Executive Assistant
$20.00 per hour
$20x40x4.33x12=
$41,568 per year |
Annual Salary/Retainer |
$24,000 |
$41,568 |
401k |
$0 |
$4,157 |
Absence/sick time (x10 days/yr) |
$0 |
$1,600 |
Annual bonus (x2wks salary) |
$0 |
$1,800 |
FICA |
$0 |
$3,242 |
Health Insurance (based on employer's contribution) |
$0 |
$1,800 |
Office Equip/Furniture |
$0 |
$3,500 |
Overtime |
$0 |
$3,597 |
Training/tuition |
$0 |
$500 |
Unemployment (State/Fed) |
$0 |
$357 |
Vacation (1wk) |
$0 |
$800 |
Worker's comp (x.69%) |
$0 |
$287 |
|
|
|
TOTAL ANNUAL SALARY |
$24,000 |
$63,208 |
|
Contracting with a professional VA for *40 hours per month (one quarter the hours of a full-time employee) saves you almost $40,000 per year! You may be asking yourself, "Is this for real?" Yes, this is for real. VAs only charge for the time it takes them to work on your project. You no longer pay for idle time, such as talking with co-workers at the water cooler or copy machine, or even personal phone calls. Further, you don't have to hire additional people to manage your payroll, 401k, human resource issues or any of these types of administrative duties.
Fully equipped offices and the most current software are standard with the most professional VAs. Keeping up with the latest trends, current events and technology is what we do best. Through continuous education and training, VAs are able to bring this knowledge back to their clients. It also distinctly separates VAs from employees, as many of us are business owners and have quite a different approach to business in general.
Power slacking on the job
If you still aren't convinced that a Virtual Assistant can save you money, a recent survey and article (July 11, 2005) might convince you.
Survey: Workers waste more time than employers expect, costing companies $759 billion a year.
July 11, 2005: 9:08 AM EDT
By Jeanne Sahadi, CNN/Money senior writer
NEW YORK (CNN/Money) – It probably will take you a few minutes to read this article, which won't put too much of a dent in your workday, right?
But add to that the time you spend trolling (elsewhere on) the Internet, chatting with colleagues about your life or Lhasa Apsos, booking your next vacation, and making all those – admit it -- aimless phone calls to your spouse or friends.
Before you know it, you've killed a couple of hours, not including lunch.
Apparently, that's typical for the American worker, according to a survey released Monday by Salary.com and AOL, a unit of Time Warner, CNN/Money.com's parent company. (click here read full article)
Would you want to come to work in this environment?
This is one of the many reasons why people are leaving their corporate jobs and working for themselves. Some of the top reasons people enjoy working for themeselves:
- Less stress
- Increased ability for self-care
- Increased ability for care of immediate and extended family
- Less worry over whether or not to take a sick day
Employees continue to work even while sick – The current work environment causes a majority of employees to believe that even though sick, they cannot take off work. A survey conducted by ComPsych of more than 1,000 employees revealed that 34 percent of employees work while sick because their workload makes it too difficult to take time off. Another 26 percent work while sick because it feels “risky” to take off in the current work environment, and yet another 17 percent work because they reserve their sick days for possible family situations (e.g., kids are sick). Only 23 percent of respondents claim to put their health first and not work while sick. "The percentage of employees who work while sick–and the reasons they do so–is virtually unchanged since 2004," said Dr. Richard A. Chaifetz, chairman and CEO of ComPsych. "Employees' health continues to take a backseat as they succumb to the demands of work and caregiving." Human Resources Management Daily Document Update ¶21,589 .
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