Guest Entry: What are the real costs of in-house VS virtual employees?
Andzej Rynkevic is the CEO & co-founder of Baltic Assist, a company that helps small and medium sized businesses enjoy the same benefits of nearshoring the conglomerates have been doing for decades. Now it’s available to everyone.
Andzej is an expert with key insights in the industry and has set up more than 100 nearshore projects.
What are the real costs of in-house VS virtual employees?
Are you thinking about getting a virtual employee in to help share the workload? Not quite sure about what the pros (and cons) are when compared to a standard in-house employee? Luckily for you, we know a thing or two about this industry, so we’ve put together everything you need to know. Perfect for allowing you to sleep easy knowing that you’ve made an informed decision that will help take your business to the next level.
The Two Types of Costs: Visible & Invisible
This may sound a little strange if you’re thinking about it for the first time, but there really are two types of costs. Think about something like buying tickets online. The advertised price of a ticket itself is a clear example of a visible cost. Whereas, the booking fee that’s added on just before you come to pay, is classed as an invisible cost. Clearly, we need to consider both when weighing up whether or not to go down the virtual route.
Salary: Fixed vs. Pro Rata
Perhaps the most attractive thing about hiring a virtual assistant is that it means you can avoid having to start another expensive salary pot. By employing someone pro rata, you can use them for as long as you need, and only for a specific task that you need to be completed. If their input is required for 6-hours per week, then you merely have to pay for that amount of time. It could be bad financial practice to hire someone on a permanent contract to carry out such a small amount of work.
The other upside is that the hours you employ a virtual worker for are innately flexible. If you find that you need them to do double the week after then if you give notice, they’ll gladly fit it into their schedule. In essence what you’re doing here is paying for precisely what your business needs, and nothing more. No costlier salaries when you only need someone to do part-time hours. As-needed assistance is the way of the future, especially for those of you who like to keep things lean!
Equipment: Office Space vs. Working Remotely
If you’re in the expansion phase of your business cycle, then space will likely be at a premium. Getting another desk and workstation costs time, space, and effort. Not to mention lots of money. By hiring a virtual employee, you can save on all of this in an instant because they will work remotely as a matter of course.
That not only saves you some legwork, but it also enables them to work in an environment they already feel comfortable in. Because there’ll be no asking where the printer paper is or what time everyone goes for lunch, your virtual worker will adapt to things from day one without needing much input from your end.
Office Supplies: The Little Things Add Up
Because your VA will work in their own space, often hundreds of miles away, you won’t have to pay for all the little things they would otherwise be using in the office. Pens, paper, printer cartridges, you name it, you save on it. It may not sound like the most critical thing in the world, but if you have half a dozen remote workers, come to the end of the year, you’ll have saved a significant amount.
The Social Side of Things: Is There a Social Cost to Pay?
One thing that people who have never tried working with virtual staff often say is that: ‘won’t your relationship with them suffer?’ It will never be completely the same but remote workers have learnt to become masters of communication and will most likely be highly personable individuals. A quick message to say hello again and a timely reply are all it will take to build a relationship even if you never meet face-to-face.
If it’s something that you feel strongly about then, you could quickly set up a periodic FaceTime session that allows you to put a name to a face. You’d be amazed at how little things like that go a long way to cutting delivery times and increasing output. Or choose a remote employee closer to home, so you can meet each other physically. The Baltics for example, are only 2 hours away from Copenhagen.
If you want to know more
If you’re interested in virtual employees, come join our workshop on the 25th at 14.00 o’clock, at the H9 Workshop area, and hear more about how (or if) your company can benefit from nearshoring to the Baltics.