Virtual Assistant vs traditional employee

For many small business owners, managing day-to-day operations means making a crucial decision: hire an in-house administrative employee or work with a Virtual Assistant (VA)? While a full-time employee may seem like the traditional choice, the financial implications go far beyond just their salary. When factoring in overheads like leave entitlements, office space, and recruitment fees, the numbers tell a different story. Let’s break down the real costs of each option and why hiring a VA could be the smarter financial decision for your business.

Employee Overheads: More Than Just a Salary

Beyond their base pay, employees are entitled to additional benefits that significantly increase business expenses.

• Superannuation: As of 2024, Australian employers must contribute 11% of an employee’s salary to superannuation. For a $60,000 salary, this equates to $6,600 annually.
• Annual Leave: Full-time employees receive four weeks of paid leave, which costs businesses $4,615 per year (based on 1/13th of the salary).
• Sick Leave: On average, employees take 10 days of sick leave per year, costing employers around $2,308 annually (approximately 1/26th of the salary).
• Workers' Compensation Insurance: The cost varies by industry but typically falls between 2–5% of salary, adding $1,800–$3,000 annually.

Total Employee Overheads: $15,323–$16,523 per employee (Compared to $0 for a VA).

Note: Some Virtual Assistants may require super contributions depending on their employment structure. Speak with your accountant, or check with the ATO for specific guidelines.

Workplace Costs: Office Expenses Add Up 

Having an in-house employee means more than just paying a salary—it also requires providing them with a workspace and necessary tools.

• Office Space: Renting or maintaining office space for an employee can cost $5,000 per year.
• Equipment & Tech: Providing a computer, monitors, phone, and other office essentials typically costs around $3,000 every 3–5 years.
• Training & Development: Many businesses allocate $1,500 per year per employee for professional development and training.

​Total Workplace Costs: $7,500 per employee (Compared to $0 for a VA)

Hiring Costs: The Recruitment Expense

Hiring a full-time employee comes with upfront costs that businesses often overlook.

• Recruitment Costs: Job advertisements, HR processing, interviews, and onboarding add up to an average of $5,300 per hire.
• Office Furniture: A desk, chair, ergonomic assessment, and office setup costs approximately $2,500 per employee.

​​Total One-Off Costs: $7,800 per employee (Compared to $0 for a VA)

Why Partnering with A VA, SAVES You Money

A Virtual Assistant eliminates many of the costs associated with a full-time employee, providing a cost-effective, flexible alternativePricing.  When you compare the total cost of hiring a full-time admin employee versus working with a Virtual Assistant, the numbers speak for themselves:

1. Pay Only for What You Need – VAs charge per hour or per project, meaning you’re not paying for idle time.
2. No Leave Costs – Since VAs are independent contractors, you don’t need to cover entitlements.
3. No Office or Equipment Costs – VAs work remotely with their own tech and tools.
4. No Recruitment Costs – Skip the hiring process and get immediate assistance from a skilled professional.
5. Scalable Support – Need extra help during peak seasons? Scale up or down without long-term commitments.

​By hiring a Virtual Assistant, businesses can cut operational costs, increase efficiency, and stay flexible without the financial burden of a full-time employee. If cost-saving and streamlined support are priorities, partnering with a VA could be the best investment for your business.

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Cutting costs while boosting efficiency is easier than you think. Whether you need admin support, research assistance, or help tackling your to-do list, a Virtual Assistant can be the game-changer your business needs. Let's chat about how I can help lighten your workload!

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