Costs: On-Site vs Remote

On-site employees are an expensive commodity and they have a huge impact on your profitability.

Let’s assume you pay your full-time assistants $15.00 per hour. Not so bad, right? Well, don’t forget to calculate their effective rate of pay. Factor in the payroll taxes (Social Security/FICA, Unemployment/FUTA, Medicare, Workers’ Compensation insurance, State taxes) you are required to pay. In most cases you will need to provide some benefits (life, health, disability, retirement plan). To this point your costs are really 1.3 to 1.4 times the base wage rate.

Now we have to add your apportioned overhead (office) expenses. You will need to provide some physical space to house the employee (rent). They also need desks, chairs, office supplies and equipment (like fax machines and copiers), telephones and computers. You have to buy (and license) the software for those computers and keep it up to date. Now add the expensive upgrades you’ll have to do periodically to your LAN, voice mail system, etc. Will there be overtime? Vacation time? Personal leave? Your $15.00/hour on-site worker is not such a bargain anymore!!

So let’s compare the costs:

On-Site Employee Virtual Assistant
Sample hourly rate of pay $15.00 $30.00*
Payroll taxes & benefits $6.53** $0.00
Office expenses & overhead $4.50 $0.00
Total effective rate of pay $26.03 $30.00
Hours per year 2,080 500
Total labor cost $54,142 $15,000

*Example; rates may vary based on task/requirements
**United States Department of Labor

Your remote assistant can save you nearly $40,000 per year compared to a full-time on-site assistant. How can you beat that?

The final thing to consider is that you are paying your on-site employees for every hour on the payroll, whether or not they are actually working. Think about mandatory break periods, bathroom breaks, personal phone calls, surfing the internet, gossiping with coworkers, holidays, vacations, sick days. Costly but wasted time. I work from my own office, using my equipment, supplies and software, as an independent contractor, so you have no additional expenses beyond my hourly (or contracted) rate.

Hire me as your complete remote office workforce or your overflow go-to Girl Friday and get more for your money! I am available nearly 24 hours a day, every day, to give you support. I am as dedicated as you are to your success. And, if you contract me to do a job in an agreed-upon time frame and I waste my time on break or personal phone calls, I lose both income and your confidence in me. I take my business (and yours) very seriously.

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