VA Myth #1: Hiring a VA is expensive
(News Update: 09/02/2018)
I wrote this blog recently for a post on Linkedin. Time to share it here too.
Often when discussing what I do and my hourly rate I hear this kind of remark:
"Crickey! I could employ someone a lot cheaper than that!"
Erm - well that's not really true!
VAs generally charge by the hour and that's the way I generally chose to charge for my services. For that you get a highly experienced expert administrator and business owner supporting your business, when you need the help.
So for example, AdminAnywhere's standard rate is £24 per hour (2017/18 rate)
Let's look at a few of the other costs associated with employing someone and compare:
- The Job: Have you written the job description/person specification? How many hours do you need to cover? The role will need a specified number of hours and days/times.
- The Location: Have you got business premises? An office with a desk, computer and all the equipment needed for your new starter? No? All this will cost to set up, expect anything up to at least £1000.#
- Recruitment costs: How much to advertise the role? How much time will it take to find someone? Factor in the cost of your time to sift through the applications, interviews etc. Agency fees if you outsource this task will probably be over £500.
- Training: So you've recruited someone on a low wage. How skilled are they? How much training will be required? Have you got the time and skills to train your new recruit? Outside training costs? Costs and time unknown.
- All those other on-costs: National Insurance, Pension, Insurance, holiday pay, sick pay, etc. These all add onto that £8 per hour wage.
- Now let's look at the productivity of those hours you're paying for. Even if you just needed someone part time, you decided on 4 hours a day to make it worth while employing someone. Do you get 4 hours of solid work done each day? How much time are you paying for your employee to twiddle their thumbs when it's quiet? How much time is spent chatting and keeping up with their social media?
If your business is ready for someone to officially take the helm in your office then go for it, recruit and look after your investment, but realise that they really deserve to be paid much higher than minimum wage.
Here is a very handy employee cost estimator that I've found on the web courtesy of Gravity Credit Control (You can probably find other similar ones via other searches too).
If your admin needs fluctuate or you need someone now, then a VA is the solution. VAs have the experience and expertise to jump in and get the task done with the minimum of your time. I, for example, have over 30 years experience as well as 5 years as a VA and running AdminAnywhere. You just pay for the time I spend on your work and not the downtime - so if it only takes an hour and a quarter this week it will only be £30. All the above on-costs are covered by me.