**Calculating the ROI of Hiring Virtual Assistants: A Game Changer for the Independent Insurance Agent Industry**
For those in the Independent Insurance Agent industry, the ever-increasing fierce market competition and expense pressures have forced agency leaders to seek innovative ways of improving their business efficiencies. One promising solution lies in acquiring quality remote assistance via Agency VA, specializing in global workforce staffing and virtual assistant services. The benefits and potential ROI of acquiring virtual assitants are immense, but how do you measure that precisely?
Before we delve into the nuances of this topic, it is essential to equip our readers with the clear understanding of a ‘virtual assistant’. According to *Investopedia*, a virtual assistant (VA) is an independent contractor who provides administrative services from a remote location, typically at home or a place outside the traditional office.
Now, let’s unveil the ROI calculation of hiring virtual assistants through an illustrated step-by-step guide.
**1. Identifying the Costs**
First, identify the full cost of your employee. This includes the salary, associated benefits, taxes, and other expenses. Take note here, an employee’s salary is just a segment of their total cost to the company. In the United Sates, the *Bureau of Labor Statistics* reported in March 2021 that civilian employers spent an average of $37.73 per hour worked for employee compensation. Wages and salaries cost employers $25.22 while benefits cost $12.51.
**2. Identifying Value Generation**
Calculate the total value that an employee brings to your business in a set period. This can be an uphill task especially in quantifying some forms of value such as improved customer service or business reputation. However, the most common metrics to evaluate include: sales revenue generation, client satisfaction, project completion, among others.
**3. The Actual Calculation**
The ROI formula simply is: (Gain from Investment – Cost of Investment) / Cost of Investment. In this context, the gain represents the value your business garners from the work done by the VA.
But this calculation is only a part, it’s time we explore even deeper dimensions.
**Value Addition through Off-time Productivity**
Virtual assistants, particularly those managed through Agency VA’s proprietary remote worker management software, AVA, can work outside of traditional business hours. This is of extreme importance as it helps your firm stay productive even during non-operational hours, considerably amplifying your overall productivity.
**Value Addition through a More Focused Workforce**
Once routine tasks are outsourced to a virtual assistant through Agency VA, your key team can focus on what really matters – shaping your strategic vision and growing your business. The *Harvard Business Review* points out that assigning higher-value work to your in-house team can lead to substantial increases in productivity and morale.
**Value Addition through Scalability**
Virtual assistants provide businesses an opportunity to scale operations with significantly less financial risk. Hiring full-time employees could mean long-term financial commitments, but with a virtual assistant, you can tweak your staffing as per business requirements.
**Conclusively, An Advicable Way Forward**
Making a shift towards the use of virtual assistants can indeed be a game-changer for your business’ ROI. Agency VA’s aptly-tailored global workforce staffing solutions along with AVA, aims to enhance operational efficiencies, providing high value at lower costs. Coupled with the potential to scale up or down quickly in response to market fluctuations, virtual assistants can dramatically enhance your business dynamics.
To understand the value addition of our virtual assistant services and AVA better, schedule a meeting with our team to discuss the specifics. The step you take today might very well define the prosperous future of your independent insurance agency.
Let’s change the game together, one VA at a time.
**Sources**
1. [Definition of ‘Virtual Assistant’](https://www.investopedia.com/terms/v/virtual-assistant.asp) – (Investopedia)
2. [Employer Costs for Employee Compensation – March 2021](https://www.bls.gov/news.release/pdf/ecec.pdf) – (Bureau of Labor Statistics)
3. [Make Your Employees More Productive](https://hbr.org/2019/03/9-ways-to-make-your-employees-more-productive) – (Harvard Business Review)