Virtual Assistant FAQs
What is a Virtual Assistant?
A Virtual Assistant (or VA) is a professional service provider who
specializes in providing remote administrative office support services
as an independent contractor who works with clients in an ongoing,
collaborative professional relationship.
Virtual Assistants work from their own offices and utilize today's technology
to deliver their services and communicate with clients.
A Virtual Assistant's support is foundationally administrative,
secretarial and clerical in nature. However, many Virtual Assistants
offer additional specialties that fall under creative and technical services.
Virtual Assistants come from a variety of business backgrounds, but the single-most important qualification to
become a Virtual Assistant is at least five (5) years administrative
experience earned in the real (non-virtual) business world working in
upper level capacities such as administrative assistant, executive
assistant, secretary, legal assistant, paralegal, legal secretary, real
estate assistant, office manager, etc.
At this level of experience, a VA is expected to possess the skill sets, training and
business knowledge which are the hallmarks of a truly qualified Virtual Assistant.
Definition provided courtesy of the Virtual Assistance Chamber of Commerce.
Why use a Virtual Assistant?
Collaborating with a Virtual Assistant. . .
- will free you to do what it is you are qualified to do and what you really love to do!
- will generate more sales and thus, more revenue!
- will save you money!
- will provide your business with more efficiency and effectiveness!
The Small Business Administration (SBA) has shown . . . a small business
owner can spend up to 40% of their time with the administration of their company.
Administration is necessary when operating a business. Should you be doing it? Probably not, unless you
really enjoy those administrative tasks and have an extra 16 hours each week to perform them.
Question: Are you generating revenue as an administrator?
Answer: No! You're not!
Question: Should you hire an employee to help your business?
Answer: Let's take a look. . .
Cost Savings
Partnering with a Virtual Assistant costs less than hiring an employee.
You may not be that familiar with Virtual Assistance and what it should
cost. It may seem expensive. But don't forget the old adage, "You get
what you pay for." Could you hire an employee to do the same thing? Not
really. An employee is performing a job and generally isn't thinking
about work when they leave the premises. A VA is invested in you and
your business doing well, comes equipped with years of experience (I
have over 25) and is highly skilled so more is being accomplished in
any given hour. Additionally, the Virtual Assistant charges only for
time spent working for you.
A survey taken in 2005 by salary.com
found that the average American worker spends 2.09 hours of each
eight-hour work day doing things that are not work-related or revenue
producing such as making personal phone calls, surfing the internet,
and gabbing with coworkers. If you pay an administrative assistant
$10.00 per hour for 40 hours per week, that can quickly add up to
paying for more than ten hours each week for your employee to do . . .
nothing! You might as well give them a vacation each week.
The Actual Cost of an Employee. . .
An employee incurs other costs for the employer. Direct Personnel
Expenses (DPE), or general and administrative costs (G&A), include
costs such as health benefits, paid holidays, employer FICA
contributions and worker compensation insurance. Your state may also
require you to pay unemployment or other taxes on each employee. DPE
range from 24.7% to 37.7% of an employer's total labor costs, states
the U.S. Department of Labor (DOL 2006). Using the median of 31.2%,the
following table shows what the hourly employee actually costs.
| Hourly Wage | Cost Plus 31.2% DPE |
| $8.00 | $10.50 |
| $10.00 | $13.12 |
| $15.00 | $19.68 |
Additionally, the employer must compute Indirect Expenses (IE). Indirect expenses are
the cost of office space and equipment, materials, and other associated
overhead. A largely accepted figure for computing this expense is
0.05%. The following table shows those additional costs.
| Hourly Wage | Cost Plus 31.2% DPE | Cost Plus 31.2% DPE Plus 0.05% IE |
| $8.00 | $10.50 | $11.03 |
| $10.00 | $13.12 | $13.78 |
| $15.00 | $19.68 | $20.66 |
The actual cost of an employee skyrockets when the wasted hours are added.
| Hourly Wage | Cost Plus 31.2% DPE | Cost Plus 31.2% DPE Plus 0.05% IE |
Cost for 2.09 hours/ 8-hour workday WASTED |
| $8.00 | $10.50 | $11.03 | $23.05 |
| $10.00 | $13.12 | $13.78 | $28.80 |
| $15.00 | $19.68 | $20.66 | $43.18 |
Amazing, isn't it? You're looking at significant increases in expenditures
without getting anything in return. So why were you thinking of hiring
an administrative assistant? Or more to the point, why aren't you
contracting with a Virtual Assistant?
A Virtual Assistant doesn't waste your time or your money. You don't pay direct
or indirect personnel expenses or spend the time computing them for
payroll. And you certainly don't pay for 2.09 hours wasted each day!
You only pay for the time the VA works for you.
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of The Christian PEN:
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