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Benefits
Why a Virtual Assistant?
Hiring a Virtual Assistant is a Win-Win business
decision.
Did you know that the real cost of an
employee is
2 to 2-1/2 times their salary?
Surprisingly, a
$12.00/hour assistant really costs you $27.60!
| Pay Rate |
$12.00 |
| Benefits |
$4.75 |
| Overhead |
$6.25 |
| 20% Inefficiency |
$4.60 |
| Total Hourly |
$27.60 |
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|
| Hours per year |
x2080 |
| Yearly Expense |
$57,408 |
| True Hourly |
$27,60 |
In the case of hiring an employee,
this new employee is paid a wage of $12 an hour. However, this wage
is not a true cost to the company.
The cost of benefits for the employee
(health insurance, life insurance, 401k, and so on) weighs in at
approximately 35-40 percent of the hourly wage, or $4.75.
Overhead: electricity, offices,
computers, etc. - costs the organization another 50-60% of the
employee's wage or $6.25 for each hour worked and paid.
Then you must figure in the
"Inefficiency Factor"; time spent at the water cooler, personal
calls, smoking breaks, etc.
This brings the employee's total cost
to the organization to $27.60 an hour--more than double the wage
paid to the employee for each hour worked!
When you multiply the hourly rate by
the standard number of hours in a work year, the grand total for the
new employee comes to a very costly $57,408!
One More Thing
The costs described above are
those you will incur to comply with state and federal laws. They are
not all the "extra" costs of having
employees. Employee benefits such as paid vacations, insurance,
retirement plans, and maternity leave (just to name a few) all
contribute to your costs. Though most of these are optional in that
you are not required to provide them, they
are often necessary to attract and keep good, qualified workers.
Beyond that, to make those workers as competent and effective as
they can be, you may have to incur training costs. In short, when
considering what your employees really cost you, don't forget to
consider the whole picture, and plan and budget accordingly.
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