Delegate, Focus, and GROW Your Business

I’ll Do It Myself: How Much Is That Going to Cost You?

We’ve all heard it said that some things just can’t be outsourced and need to be done yourself. Some of those things might be confidential in nature, too complicated or too time consuming. It might be that you’ve always done it your way since the beginning of the projects existence, and you feel that nobody could do it as well as you.

There are times when you might think that the expense of outsourcing the project or task out would be cost prohibitive for reasons such as training someone else, or the hourly rate is much more than you would pay your employee to do the same thing. It is true, there are some things that you truly cannot outsource and do need to stay in house.

If you are a small company with no or very few employees, you most likely spend the majority of your time keeping the business humming along, whether it be service or product orientated the work hours would be close to the same. If you are the owner, being paid is as important as paying an employee and your time should be compensated. The cost of a full time employee has many hidden expenses that can be easily be overlooked as they are usually part of the hourly wage, such as insurance, vacation, and fringe benefits. To top it off, you have administrative overhead to house your employees and office and/or production equipment needed, plus workers compensation, taxes etc.

So let’s take a look at the “I’ll do it myself” list, or the “I’ll pay an employee” cost –VS- the cost of using an outside source, such as a Virtual Assistant.

When you tally the cost of having an employee for a 40 hour work week at a rate of $18.00 per hour it could look something like this for the year;

$37,440 for   2080 Hours per year x $18 per hr.                                                                                   

$14,560 for  Fringes: health/life/dental/retirement at 35% = approx. $7 per hr.

$20,800 for Overhead rate: office, equipment, workers comp, unemployment insurance, overtime, administrative, vacation replacements etc. at 50% = approx. $10 per hr.

$72,800 RATE OF PAY PER YEAR PER EMPLOYEE = COLLECTIVELY $37.00 PER HOUR                                                                     

Using a Virtual Assistant to perform the same tasks could look like this;

Using approximately 1500 hours per year (Yearly total hours of 2080 less breaks and paid time off.)

$52,500 (Average hourly pay for a VA at $35)

$20,300 SAVINGS PER YEAR

As you can see, using a Virtual Assistant could save significant expenses throughout the year. An added bonus is that most VAs are very experienced in their particular field, which could save an enormous amount of time, lowering your costs even more.

photo credit: CheapFullCoverageAutoInsurance.com

Posted on June 8th, 2015 by Rachel Braam, Office Manager

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