“Cost Comparison: Hiring Virtual Assistants VS. Full-Time Employees”
As the workplace evolves, businesses are exploring new, cost-effective ways of operating. One of these avenues is leveraging virtual assistants over traditional full-time employees. At Agency VA, we have become a leading expert in understanding this trend, most acutely in the Independent Insurance Agent industry. So today, we’ll delve into a comprehensive cost comparison between hiring full-time employees and virtual assistants.
The Bureau of Labor Statistics reveals that the average annual wage for insurance sales agents is approximately $67,780 in the United States. However, this doesn’t completely consider the related costs, including employee benefits, training expenses, hardware, and other overheads. According to the U.S. Department for Work and Pensions, these additional costs can add 20-30% to the base salary!
The possibility of containing these overhead costs points us towards the growth of Virtual Assistants (VA). A VA is a professional who provides services to businesses from a remote location. They offer a range of services such as administrative tasks, customer service, marketing, and even accounting.
As an expert in Global Workforce Staffing, I can confidently say VAs have been a game-changer. Why? Because they can significantly reduce overhead costs. With a VA, you don’t incur costs for office space, hardware, or employee benefits, limiting expenditure to “pay per use” services.
Now, let’s dive into a direct cost comparison.
Firstly, in hiring a full-time employee, you need to factor in recruitment costs, a time-consuming process that often involves various procedures and protocols which could lead to potential legal risks. However, when hiring a VA through a powerful source like Agency VA, you’ll bypass many of these processes and expenses, breaking away from the classical burdens of hiring full-time workforce.
Secondly, workspace and tools that are a requisite for full-time employees increase your fixed costs. In contrast, VAs typically have their own dedicated workspace and use their own hardware. They usually have expertise in using efficient remote-worker management software, like our AVA, a tool that simplifies managing and monitoring your VAs increasing productivity.
Thirdly, employee benefits—health insurance, retirement plans, paid holidays—add significantly to the cost of an employee. For VA’s, the service is contract-based, you are not required to offer such benefits. Instead, you negotiate pay rate and tasks to be carried out.
Last, but not least, is the cost of training. A full-time employee needs to ramp up with company policies, systems, and role-specific skills. A VA, on the other hand, typically comes already skilled in their service area and requires much less time-consuming training. This means a quicker start to productive work.
By now, you likely see the financial benefits of a VA over a full-time employee are profound. At the same time, it’s vital to recognize that a full-time employee brings certain benefits, inclding a deeper relationship with your team and usually a higher degree of commitment.
Indeed, it’s a balance, guided by your unique business needs, industry norms and regulations, and ultimately your financial capability. However, in the current move towards digitalisation and remote work, the balance is shifting in favor of VAs, especially in the Insurance industry.
Are you considering hiring a VA? Do you have questions or reservations about incorporating VAs into your business model? Set up a meeting with our team at Agency VA to learn more about how a virtual assistant can help leverage your business operations and drive cost efficiency. As an expert in global workforce staffing, we can offer the guidance you need.
In the future of business, flexibility and adaptability are key. Consider your options and explore the potential of virtual assistants today. We’re here to help you make the best decision for your business and to support you every step of the way.
Sources:
1. Bureau of Labor Statistics – Insurance Sales Agents
2. Department for Work and Pensions – The Employers Guide