Many people won’t use a VA as they believe the hourly rate is too high “compared” to that of an employee. But they literally compare the hourly rate, rather than all the employee add ons. If you break it down you can see there are more costs which soon bump up the employee’s hourly rate, which then makes it more comparable to using a VA in certain circumstances.
So, lets break this down.
If we base this on an advertised hourly rate for a PA of £12.50 per hour, the annual costs work out like this:
Full time salary £26703
Bonus (discretionary) £1602
Employers NI £3685
HR costs £8800
Office overheads £4800
Recruitment costs £300
This gives the PA an average hourly rate of £24.51. The average hourly rate for a VA is £24.34 (all figures are from 2018). That’s a difference of 83p per hour. (thank you to Anna Iveson for the original figures)
When you look at it like this, you can see the 2 true hourly rates are very similar. With a VA you get additional skills, flexibility, productivity and the option to only use them when you need them.
Lots of positives from where I am sitting, but then again, I may be a little biased?
If you want totally flexible, high quality support within your business, without all the add ons, contact us us today