In 2018 the AVERAGE COST of a virtual assistant in the UK was £25.34 per hour.
Many small business owners question WHY the hourly rate for a VA appears to be much higher than the cost of hiring a personal assistant.
On the surface the cost of a virtual assistant does look high when compared with the average rate of £12.50 per hour for an in-house assistant. BUT what you might be forgetting are all of the HIDDEN employment costs, which could well bite you in the bottom further down the line.
So let's dig beneath the surface and take a DETAILED look at the cost of a virtual assistant compared to the cost of an in-house personal assistant:
Cost of a Virtual Assistant
The average cost of a virtual assistant in the UK in 2018 was £25.34, and £26.85 for VAs with at least 5 years’ experience.
The lowest hourly cost of a UK virtual assistant was £10 per hour
The highest hourly cost of a UK virtual assistant was £100 per hour*
It’s important to note that the rate charged by virtual assistants in an ALL-IN RATE, which covers everything.
So, the rate you see is the rate you’ll pay.
Cost of a Personal Assistant
The average SALARY of a personal assistant in the UK in 2018 was £26,703 for a full time position (this number is much higher for PAs working in London).
Although discretionary BONUSES are not a requirement, many businesses do choose to award them for good performance. The UK government estimates that the average bonus now stands at around 6% of annual salary (£1,602).
Employers are required to make NATIONAL INSURANCE contributions of around 13% for each member of staff (£3,685).
The average salary of a PA in 2018 was £26,703,
equivalent to £12.50 per hour.
From this year the compulsory PENSION contribution from employers will rise to 3% (£801).
Every member of staff generates HR COSTS of around £8,800 per year – this covers things like sick and maternity cover, new starter orientation, holiday cover and software licenses.*
OVERHEADS such as office space and computer equipment add a further £4,800 to the average wage bill.
On average, employers spend around £1,590 on TRAINING AND DEVELOPMENT per employee.*
Finally, RECRUITING in-house staff can be costly with advertising or agency costs averaging around £3,000.*
So if we tot up all of those numbers and break it down into an HOURLY RATE, it works out at of £24.51 for an in-house personal assistant.
As you can see, the final numbers are extremely close:
£25.34 for a virtual assistant
£24.51 for a personal assistant
Productivity – You only pay a VA for work they’re doing for you. No more paying a PA to think of needless tasks to do during a quiet period.
Specialisation – It’s possible for you to hire multiple Virtual assistants to take on specific jobs so that you have an EXPERT on hand when you need them.
- Micro-work – As a solopreneur you may only need a HANDFUL of hours’ help per week. A virtual assistant can do this for you because she has other clients to fill up her schedule.
When you run your own small business, you need to make wise spending decisions over your hard-earned cash.
Working out the most COST-EFFECTIVE way to get help in your business is a sensible thing to do. Having calculated the average cost of hiring a virtual assistant as compared to an in-house personal assistant, it’s clear that there’s actually very little in it.
So the real question now is HOW you want that help to fit around the needs you have in your business.
Make sure you come back for our next blog where I’ll be going back to basics and answering the question: What is a virtual assistant?
Enjoy the blog? Then make sure you download our FREE Ultimate 5-Step Cheat Sheet to Hire the Perfect Virtual Assistant
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