Our job as Virtual Assistants is to carry out the business administration tasks that suck the time and resources out of the owners and management teams who are trying to build and grow their business. There is a perception out there that a Virtual Assistant Service is way too expensive.
Now why, you ask, would you pay a Virtual Assistant an hourly rate, which, within the UK is on average £25.00 per hour, when you could pay for an employee between £9.00 and £12.00 per hour.
We understand and agree however, that the true cost of an employee is so much more than that of the hourly rate of a Virtual Assistant Service. The VA Team can actually save you thousands a year, yes thousands, even at £25.00 per hour.
Obviously, the first big cost you have to consider is the salary. While it very much depends on what sort of experience you’re looking for, what level you’re hiring at and the contract specifics, most recent government figures show the average UK salary is about £28,600 per annum. That is £2,383.33 per month, which works out to around £14.00 per hour.
Let’s have a deeper look at this and see if a VA works out cheaper.
Every employer has to pay towards their full-time employees’ PAYE (tax rate of 20%) and National Insurance (NI) which the standard rate of an employer’s Class 1 NI is 13.8% of their total pay. Estimated monthly cost: £597.07
Right, let’s talk Pension. The auto-enrolment scheme, employees are automatically signed up to, is a basic company pension scheme at 3%. Estimated monthly cost: £69.00
The on-boarding and in-house training everybody will need to provide, will either way you look at it, come at a cost. It is a vital cost as training to improve your new employee’s knowledge of your business is a must. Estimated monthly cost: £489.00
Don’t forget now, that you have to provide office space and equipment for this employee, this does not come cheap, and with the current state of affairs with most working from home, there are other costs which need to be factored in. (HR and accounts costs, Holiday, Maternity, Sick leave, etc.) Estimated monthly cost: £692.67
Let us now add all of these amounts and see what we get. (Total cost to company)
Now for the fun bit….
An employee will now cost your business: £201.48 per day and that works out to an hourly rate of…. drum roll please, £31.00 per hour for a 5-day working week.
Now the question is, is a Virtual Assistant more expensive, considering you only pay for the time that you use.
Even at the £25.00 per hour virtual assistants charge, our rate seems to be £6.00 per hour cheaper. That gives you a saving of not only your time, but a massive saving of £1,007.47 per month. (£12,089.60 per annum) including less headaches with regards to HR and staff requirements.
But hold on now! What would you say if The VA Team offered you, for 100-hours of one of our UK-office based VA’s with more than 10+ years’ experience at the rate of £13.00 per hour, fixed expense?
If you are interested in creating your list of business freedom, why not book a FREE Discovery call with our team and let us see how much time and money we could save you today.