Benefits and Concerns: Virtual Assistant vs Permanent Employement
Are there more benefits and concerns in hiring virtual assistants than hiring permanent employment?
Well, every situation is different and need to be judged on its own merits.
Below is an objective overview of some benefits and concerns of the following options: hiring a permanent employee vs a temporary employee vs contracting a virtual assistant.
The lists are by no means all-inclusive, but will give you a fair idea of what each option requires from you.
Permanent Employees
Pro's
- On-site "face-to-face" working relationship - if you require that your assistant should be available at the office.
- Long term relationship.
- Initial training, but once employee is competent on the job, can perform it quick and accurate
- Supervision possible.
Con's
- Expensive. Need to pay employee benefits such as healthcare, life insurance, unemployment insurance, social security and taxes. Benefits package usually makes up 30 to 40% of base income.
- Pay for unproductive time including breaks, vacation leave, sick leave and maternity leave.
- Legally responsible for employee.
- Need additional equipment and office space.
- Administrative issues such as payroll, records of sick leave and vacation leave.
- Offers low flexibility opportunities
Temporary Employees
Pro's
- On-site "face-to-face" working relationship
- No need to pay employee benefits.
- No legal responsibility. If a work relationship isn't working out, a business can let go of a temp without consequences and hire a new one
- Less administrative issues. It's not necessary to be concerned with the details of payroll and employee benefits - staffing company takes care of the temporary employees' payroll processing and benefits administration
- Offers higher flexibility - enables businesses to adjust easily and quickly to workload fluctuations.
Con's
- High turn-over rate and short term relationship. Temporary employees frequently move from company to company - not staying long enough to become an integral part of the business.
- Pay for unproductive time including breaks and any downtime when there is no active work.
- Need additional equipment and office space.
- Varying levels of experience, technical ability and business insight often require a certain amount of on-the-job-training.
- Morale and employee relations issues can arise when temps work together with permanent employees for extended periods of time, doing the same work, but not receiving the same benefits.
- Sometimes additional agency fees need to be paid.
Virtual Assistant
Pro's
- A VA is not your employee but can form a partnership relationship with business owners.
- No on-site employees means no liability.
- No need to pay for employee benefits, overheads and taxes.
- No administrative responsibilities associated with employee policies, payroll, performance reviews and training.
- Only pay for hours worked.
- No legal responsibility.
- No additional equipment and office space needed - VA?s are often far more advanced when it comes to technology and using internet process to support business owners.
- Freedom to work from any location.
- Services are tailored to fit your needs - relationship can be long term or short term
- Trained already - have specialized skills, experience and knowledge of administrative and corporate fields.
- Allows you to have more freedom in how you spend a day during low peak times.
- As an entrepreneur, they understand the challenges of running a business
- As a partner, they know your business and brings that knowledge to each and every assignment
- Genuine interest in helping you achieve your goals.
Con's
- Face-to-face working relationship (not really a concern, but I had to mention one.)
We believe that the term "benefits and concerns" are in the eyes of the beholder.
Every situation needs to be judged on its own merits and what works for one person does not necessarily works for the next.
Do not rush into making a decision - evaluate your needs and make an informed decision that will bring the most benefits to your business.
For more information also read
What is a VA
How to Hire a VA
Hiring a VA - What is in it for me
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