Market Boost for Virtual Assistants over Regular Employees

With an economy which is growing worse day by day; most employers around the world are looking for various alternatives to save money and cut down unnecessary costs. An important component considered during this process is cutting down the labor costs, which is a major chunk in the costs incurred by an organization.

How?

By the use advanced technology and communication techniques, it has become very easy and more effective to cut down and save the costs incurred on the regular full time based employees.

The solution is to hire and engage a Virtual Assistant!

Changes are always hard to implement and maintain but if you gain more by adapting to it, then Why Not Try It?

Advantages

There some significant advantages as to why employers increasingly opt for Virtual Assistants.

When considering the cost, it is always comparatively expensive to hire a regular full time employee, than engaging a Virtual Assistant. According to the Virtual Assistant Networking forum VA Networking, a full time employee is paid $20 per hour with 35% of that is incurred in the form of fringe benefits while an extra 50% incurred as additional factory overheads, adding up to a total cost of $37 per hour, whereas a Virtual Assistant is only paid an average of $35 per hour.

As a contradiction to the traditional belief “cheap things are not good“, Virtual Assistants are cheap but that does not affect their work efficiency. Comparing the number of hours worked per annum, full time employees consume around 2080 hours, while Virtual Assistants take only 480 hours which is less than 25% an employee consume to work on the same task. in point of fact, with both high cost and poor efficiency, the full time employees are still paid $76 960/annum while Virtual Assistants are only paid $16 800, which is 78% less costly to perform the same task and the importance is, it helps you greatly for COST CUTTING.

Apart from the above, various other expenditures are also involved in employing a full time employee which could be saved by hiring a VA. For instance, employers are liable to pay various forms of taxes such as unemployment tax and incur expenses. As examples, consider the EPF (Employees’ Provident Fund) and the ETF (Employees’ Trust Fund). In the case of Virtual Assistants, as their services are tax deductible, it enables you to save costs in two easy ways.

Another issue regarding full time employees is the training processes which are required for employees to perform tasks whenever they have to perform work which is out of their usual scope and this incurs an additional cost for the employer. When it comes to Virtual Assistants, you could hire the expertise in the field you are looking for and just pay for the hours they work on your task and not a cent more.

The cost is also saved by a lot of other ways. For example, regular breaks are provided to the full time onsite employees during their work hours for tea/coffee, lunch, roaming around and surfing on the internet. Nnone of these are claimed by the Virtual Assistants who are 100% focussed on your tasks during the hours you hire them. Certain usual habits of full time employees such as regular socialising, responding to personal phone calls and emails and prolonged internet surfing make it unproductive to the company they work for. As an employer, you don’t want to waste money. To get rid of these worries, the best option available is to hire a Virtual Assistant.

Simply put, you’ll pay only for the hours worked and not for any wasted time. You could also save on the additional benefits provided to your full time employees such as paid vacations, annual bonuses and allowances, as none of these are incurred in the case of a Virtual Assistant where you don’t even have to pay for the resources used.

After getting to know all the benefits, intelligent employers would soon be switching to Virtual Assistants to boost their businesses through cost cutting and time saving they are offered.

	Full Time Employees		Virtual Assistant
Cost /Hour	Average Hourly Rate	$ 20.00	Pay at the rate of $ 35.00 per hour Save up to $ 2.00 every hour
	Fringe Benefits of 35% (Health, Insurance, Retirement Plans etc.)	Up to $ 7.00
	Overheads of 50%	Up to $ 10.00
	TOTAL	$ 37.00/hour
Effectiveness	Maximum of 2 080 hours/annum		480 hours/annum Completing tasks more effectively, within less than 25% of the time consumed
Total Labour Cost	$ 76 960/annum		$ 16 800/annum Save up to 78% spent on Labours
Tax & Other Expenses	Liable to pay all related taxes including EPF, ETF and Unemployment taxes		Tax Deductible Cost Savings
Training	Extra cost incurred for training process while salary being paid regularly		Talented and know-how professionals equipped with experience, education and up to date technology No Training Required
Breaks	Coffee breaks, Lunch breaks, Spacing out, Surfing during work and lot more during the hours being paid		100% focussed on the business and related tasks Only Pay for the no. Of hours worked
Unproductive & Costly Habits of employees	v  Frequent socializingv  Running personal errands v  Prolonged Internet Surfing v  Late to arrive/early to leave v  Personal phone calls and emails		None Focussed on your tasks & paid for the work done, nothing in addition
Additional Benefits	Annual bonuses, Allowances, Office Space, Furniture, Equipments, Paid Vacations and lot more		None Only Paid for the time consumed and not for resources