Virtual Assistant vs Employee: How to Choose Which is Right for Your Business
Learn how to decide between hiring a virtual assistant or an employee.
Well, it's official. Business is booming, and you're ready to hire someone.
First of all, congrats. You've made it past survival… and into expansion.
However, I bet you're slammed. SO slammed that you can't keep your head above water.
So slammed that you don't have time to figure out who to hire, how to hire them, and how to get them up and running as soon as possible.
I see you! 👀
I’m Gabriella, and I run a virtual assistant business designed for busy business owners, entrepreneurs, and people who just — need a hand.
That's why I've written this article. It explains how to choose between a virtual assistant and an employee, helping you pick the best one for you — quickly and efficiently.
On that note, I know you're busy, so let's dive right in.
Virtual Assistant vs Employee: What's the Difference?
There are some key differences when it comes to the role of a virtual assistant vs the role of an employee.
From taking time off to paying taxes, there are many ways in which the two roles stack up against each other. Let’s take a look at four of the main ones:
1. How They Work
With an employee, you decide both the tasks an employee will do and how and when they do them.
A virtual assistant is an independent contractor, so while you still assign duties and tasks, the contractor has more control over how and when the work gets done.
2. How You Pay
When you hire an employee, you set a regular wage or salary that’s independent of how profitable your business is. With a virtual assistant, you're more likely to pay a flat fee for only the services you need. You also pay at various times throughout the year based on timeframe or project, rather than an annual salary that is deducted every two weeks from your payroll.
3. The Benefits You Provide
When you hire an employee, you may need to provide benefits such as paid time off and health insurance. Since virtual assistants are independent contractors, they don’t require or expect you to provide benefits.
Independent contractors are responsible for handling their own health insurance and don’t usually expect any paid time off.
4. How You’re Taxed
If you hire an employee, you'll withhold state income tax, Social Security, and Medicare from their wages.
Virtual assistants are responsible for paying their own taxes. You'll likely pay them a flat fee and perhaps issue them a 1099 at the beginning of each year.
Now that you know the main differences, let’s look into the advantages and disadvantages of each role.
The Advantages of a Virtual Assistant vs Employee
Whether you hire a virtual assistant or bring on an employee, the advantages of having more help are clear.
Maybe you want someone to take things off your plate so you can focus on the next phase of business growth, create new products and services, or have time to launch a course.
An employee may be better suited to help you with your business, where as a virtual assistant is also trained in helping you with your life.
Let’s dig into six advantages of hiring a virtual assistant instead of an employee.
1. You Save Time
Virtual assistants have a specific set of skills, which may better suit your needs than hiring an employee and training them to do the same kinds of tasks. The skills of a virtual assistant include:
Managing your calendar
Responding to your emails
Doing web research and creating documents
Providing customer service
Booking your travel
Virtual assistants are highly trained in their field of, ya know, assisting you! Training a virtual assistant will likely take less time than training an employee.
This saves you a ton of time with the onboarding process. In fact, a virtual assistant essential onboards themselves!
2. You Save Money
Hiring a virtual assistant can save you money. Since your virtual assistant usually works from home, you won’t have to pay for cubicle space, utilities, parking fees, or office furniture.
Virtual assistants usually work from home and provide their own needs, potentially saving you thousands of dollars.
Additionally, virtual assistants are usually only paid only for their productive time, or the time they spend actively working on tasks, rather than a fixed salary like a traditional employee.
3. You Have More Options
Hiring a virtual assistant means you aren't limited by geography.
Your search for the perfect fit isn’t limited to your town or city — or even your state or country! A virtual assistant works remotely. They can be anywhere in the world. This gives you a bigger talent pool to find the right one to meet your needs and solve your problems.
Because your virtual assistant can work from anywhere in the world, you can, too. Even if you go on vacation or stay abroad for a while, your assistant will still be ready to help you. They won't need in-person oversight, as in an office.
4. Increased Productivity
Hiring a virtual assistant can increase both your productivity and theirs! A virtual assistant's role is to take things off your plate, allowing you to focus on the higher-income parts of your business. You can delegate tasks that take up time and have a low return on your investment.
By hiring a virtual assistant to do the tasks you like the least, you free up your mind (and your life) from admin headaches and to-do lists. This will push you toward new horizons of business growth.
It also gives you more time. Time for things like family, hobbies, sleep, and exercise!
5. Longer-Lasting Partnerships
Forbes did a recent study that found "workers who work from home 100% of the time were 20% happier on average.” This was compared to those who couldn't work from home. A happier worker means less turnover, which helps you keep a longer relationship with the person you need to run your business well.
Plus, what's worse than a grumpy employee who resents you? Nothing. Nothing, I say! I created my virtual assistant business to help people. Psst... I like being happy, too.
6. Paying Only for What You Need
When you hire a virtual assistant, you choose the timeframe and projects they work on. This means you won't have to worry about:
Committing to a long-term hire
Wondering how you'll keep them busy when business is slow
Making payroll every other week when times are tight
Virtual assistants usually offer packages for a specific period of time, after which you can reassess your needs and decide if your working relationship is working out. It’s a lower commitment, but it may come at a slightly higher price depending on which virtual assistant you go with and what their rates are.
Now you know the advantages of hiring a virtual assistant, let's talk about onboarding one.
How to Hire Virtual Assistant Services
Hiring a virtual assistant is different than hiring an employee. Rather than conducting an interview, making an offer, and putting the employee on your payroll, you usually hire a virtual assistant by:
Having a discovery phone call or Zoom to see if you’re a good fit
Starting with an agreed-upon project or length of time
Making an initial deposit or payment before work begins
Deciding if you want to continue your working relationship after the initial project
Finding the right virtual assistant can seem complicated. But there are many to conduct your search.
One of the most popular ways is to hire a virtual assistant through an online booking service. Many companies on the internet advertise virtual assistant services. Those usually work like this:
You call the company and tell them what you need.
They match you with a virtual assistant who they think will meet your needs.
You pay the company directly.
The advantage of using virtual assistant companies is that you don't have to do the leg work of finding a virtual assistant who matches your needs. However, these companies often have high turnover rates, so you may wind up losing an assistant that you love before you’re ready to lose them.
In my virtual assistant business, you work directly with me. Only you and I decide the terms of our working relationship. Plus, you can rest in the comfort of knowing that once I make a commitment to you, I'm in.
Are You Ready to Go Virtual?
Hiring a virtual assistant can change your business, productivity, and life! It can be a game-changer!
Once you’ve decided on hiring a virtual assistant vs employee, a great way to start preparing to hire is to list the tasks you'd like to outsource and how much time each takes.
This way, you go into your search knowing exactly what you need. It can help you find the perfect match.
Could it be me?
I'm Gabriella Rinehart, a Virtual Assistant and Online Travel Agent. I'd love to find out if we're a good fit.
My passion is to help individuals with their personal lives, and help business owners achieve their dreams. I do this with my virtual support.
To learn more, book a free discovery call on my calendar, and let’s chat about it! I can't wait to help you go virtual.
Source: Forbes Magazine
