Jasmine Birtles
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How to Calculate the Financial Benefits of Hiring a Virtual Admin Assistant
Moneymagpie Team
21st Aug 2024
Hiring a Virtual Admin Assistant might seem like a luxury reserved for businesses swimming in cash. But here’s the thing: it’s not just for large corporations. In fact, even small business owners and solo entrepreneurs can benefit from hiring a Virtual Admin Assistant. The kicker? It can save you money, big time.
Let’s talk about why this makes sense financially and how you can actually calculate those savings. After all, running a business isn’t just about growing your profits—it’s about making sure you’re spending your money wisely.
- What Exactly is a Virtual Admin Assistant?
- How Much Does a Traditional Admin Assistant Cost?
- Comparing the Cost of a Virtual Admin Assistant
- Calculating the Financial Benefits
- Other Financial Perks to Consider
- Making the Decision
What Exactly is a Virtual Admin Assistant?
Essentially, this is someone who works remotely (typically from home) to help manage your administrative tasks. Think of it as having your very own assistant without the overhead of hiring an in-office employee. They handle all the stuff that clogs up your day-to-day schedule—emails, calendar management, data entry, research, customer service, and more.
Okay, now that we’re on the same page, let’s talk about the numbers.
How Much Does a Traditional Admin Assistant Cost?
When you hire an in-house administrative assistant, you’re looking at more than just their base salary. Let’s break it down:
- Salary – A full-time administrative assistant typically costs anywhere from $40,000 to $60,000 annually, depending on your location.
- Benefits – Add about 20-30% of their salary for benefits like health insurance, paid time off, and retirement contributions.
- Office space and equipment – Don’t forget that you need to provide a desk, computer, phone, and other essentials. This adds to your overhead costs.
- Training and onboarding – Hiring someone in-house usually means spending time and resources on training and onboarding them, which can be both costly and time-consuming.
All in all, the total cost of hiring an in-house admin assistant can climb upwards of $80,000 annually, once you factor in all of the associated costs.
Comparing the Cost of a Virtual Admin Assistant
Now, let’s talk about hiring a Virtual Admin Assistant. Since they work remotely, the cost structure is very different. This can save you a huge amount of money while you get all of the benefits at the same time. It’s a win-win.
Here’s a quick breakdown:
- Hourly or project-based rates – Many Virtual Admin Assistants charge an hourly rate, typically ranging from $20 to $50 per hour, depending on their experience and skill set. Some might charge flat rates for specific tasks or projects.
- No benefits needed – Because they’re usually independent contractors, you don’t have to worry about benefits like health insurance, retirement contributions, or paid time off.
- No office space or equipment costs – Since they work remotely, you’re not responsible for providing a workspace, computer, or other office supplies.
- Flexible hours – Virtual Admin Assistants typically work as needed, so you only pay for the hours they actually work. If you only need 10 hours of help per week, that’s all you pay for.
Depending on how much help you need, you could be looking at costs anywhere from $10,000 to $30,000 annually. That’s a significant saving compared to hiring an in-house assistant, especially when you consider the extra overhead costs of traditional employment.
Calculating the Financial Benefits
So, how do you calculate the actual financial benefits of hiring a Virtual Admin Assistant? It’s all about comparing costs and measuring the value of your time. Here’s a simple formula to get started:
1. Determine How Much Your Time is Worth
First, figure out how much your time is worth per hour. If you own a business, this might be the value you bring by focusing on high-impact activities—like closing deals or working on product development.
Let’s say you estimate your hourly worth at $100.
2. Identify Tasks That Could be Outsourced
Now, make a list of tasks that a Virtual Admin Assistant could handle for you. Think about tasks like managing your calendar, answering emails, data entry, or handling customer inquiries.
For this example, let’s say you spend 10 hours per week on these tasks.
3. Calculate the Cost of Doing it Yourself
Multiply the number of hours you spend on these tasks by your hourly rate. Using our example:
- 10 hours/week x $100/hour = $1,000/week
- $1,000/week x 52 weeks = $52,000/year
So, if you continue doing these tasks yourself, it costs you $52,000 annually in lost opportunity value. Yikes, right?
4. Compare to the Cost of Hiring a Virtual Admin Assistant
Now, compare that $52,000 to what you would pay a Virtual Admin Assistant. If you hire someone at $30/hour for 10 hours a week, that looks like this:
- 10 hours/week x $30/hour = $300/week
- $300/week x 52 weeks = $15,600/year
In this scenario, hiring a Virtual Admin Assistant costs you $15,600 annually, versus $52,000 worth of your own time. The difference? A whopping $36,400 in savings.
Other Financial Perks to Consider
Beyond the immediate savings, hiring a Virtual Admin Assistant can lead to other financial benefits. Here’s what else to consider:
Increased productivity
With routine tasks off your plate, you can focus on higher-value work that directly grows your business.
Flexibility
Because you’re only paying for the hours worked, there’s no wasted payroll on downtime. You can adjust their hours as your needs change, keeping costs lean.
Scalability
As your business grows, you can scale up their hours or bring on additional virtual assistants without the hassle of hiring more full-time staff.
Making the Decision
So, is hiring a Virtual Admin Assistant worth it? For many business owners, the answer is a resounding yes. When you do the math, the savings can be significant, and the value of freeing up your own time is priceless. By outsourcing the day-to-day admin work, you can focus on what truly matters—growing your business and maximizing your potential.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
Great share here! Fully detailed. We at Remote Ops Solutions just want to emphasize more that Administrative Assistance Costs can be further reduced by hiring Virtual Assistants remotely.
Read our related blog here:
https://remoteops.solutions/how-to-reduce-your-administrative-assistance-costs/