Virtual Assistant (or Freelancer) vs Employee: What's Right for Your Business?

Are you an overwhelmed small business owner, working too many hours and laughing at the concept of a work-life balance?

As your business expands, so do the demands on your time and if routine tasks consume a significant portion of your time, you probably need to consider whether your time could be utilised more effectively. An excellent solution is outsourcing, and depending on the nature of the tasks, hiring a Virtual Assistant (VA) might be the answer. The next crucial step involves deciding whether a VA or a part-time employee is the better fit. Both options possess their advantages, but making a well-informed decision hinges on understanding your business needs, objectives, and budget.

In this blog, we'll explore the benefits of VA's or Freelancers and part-time employees to help you determine which is the best fit for your small business.

Time is Money – Literally

Let’s break it down with a real example.

1. Let's say you’re a psychologist charging £150 per hour for client sessions.

2. If you’re spending just three hours a week on admin tasks, scheduling appointments, chasing invoices, replying to emails etc = £450 of your time gone every week. That’s £1,800 a month of billable time lost to tasks that could easily be delegated.

3. Now, compare that to outsourcing those same three hours to me for example at £30 an hour. That’s only £90 a week. You’d be saving £360 every single week, or over £1,400 a month, simply by delegating to someone who can handle those tasks quickly and efficiently.

The key, of course, is to actually use those saved hours wisely - seeing more clients, growing your business, or even just taking a proper break. Not sorting out your desk drawer for the fifth time or getting lost down an internet rabbit hole.

Considerations for Your Business

When deciding between a freelancer and a part-time employee, consider the following factors:

• Nature of Tasks: Evaluate the nature of the tasks you need assistance with. Is physical presence at your business location necessary for the tasks? Or can the tasks be performed remotely?

• Budget Constraints: Assess your budget and determine whether you can afford the costs associated with on-site employment. VA's and Freelancers often provide cost-effective solutions for small businesses.

• Do you need the support for set times of the day: Some businesses may require email responses during specific hours on weekdays. This task is more suitable for an employee with fixed working hours.

• How many hours do you need: Do the maths! There comes a point when hiring an employee would be cheaper if your VA hours are rapidly increasing. Also, if they are working a significant number of hours for your business then IR35 may become a factor, although I'm not sure if this is still a thing anymore...

• Supervision and Oversight: How much supervision and oversight do the tasks require?Are you comfortable with a more autonomous approach for certain responsibilities?

Freelancer Advantages:

• Cost-Effective: VA's and freelancers typically work remotely, saving you money on office space, utilities, and other overhead expenses. You won't be paying sickness, holiday pay, NI and pension contributions.

• Flexibility: VA's and freelancers offer flexible working hours, allowing you to leverage their services as needed. You can pay per project or hourly. This adaptability is beneficial for businesses with fluctuating workloads, projects and incomes.

• Diverse Skill Sets: VA's often have a broad range of skills, from administrative tasks to social media management. This versatility can be invaluable for businesses with diverse needs.

Potential Disadvantages:

• Communication Challenges: A VA may not always be available when you want them to be. Are you comfortable communicating via Zoom, Slack, emails etc.?

• Dependency on Technology: Technical issues or differences in time zones can create hurdles in real-time collaboration.

• Limited Physical Presence: Tasks that demand a physical presence, like managing face-to-face meetings, can present difficulties for VA. To overcome this, consider hiring a VA in your local area. However, ensure that occasional on-site work is feasible before finalising their services.

• Shared: It's essential to acknowledge that your VA or Freelancer is concurrently working with another individuals. Consequently, you might encounter challenges in maintaining consistent productivity, occasionally manifesting as reduced efficiency. This can be minimised by asking the VA how they manage conflicting deadlines and workloads.

Part-Time Employee Advantages:

Gov.uk has lots of info on the costs and legal implications of employing staff.

• On-Site Support with a Personal Touch: Might be the better option for businesses requiring a more hands-on approach or specific on-site tasks.

• Direct Supervision: Having a part-time employee on-site allows for direct supervision and immediate feedback, fostering a closer working relationship.

• Team Integration: Staff members can become integral parts of your team, contributing to a positive company culture and building stronger connections.

• Consistency: Provide consistency in work hours and availability, which can be important for certain roles and tasks.

Part-Time Employee Disadvantages:

• Higher Overhead Costs: On-site employees may increase overhead costs, including office space, utilities, and other amenities. You will also need to pay NI, pension contributions, holiday and sick pay.

• Limited Flexibility: Could have limited flexibility in working hours compared to virtual assistants.

• Recruitment Challenges: Finding the right local talent for specialised roles can be time-consuming and challenging.

The key to working successfully with a VA or a freelancer is to be clear on what activities you wish to outsource and, of course, choosing the right person to work with. And if you have never worked with a VA or a freelancer before, then tell them. You can start slowly with a couple of tasks and once you build trust and get used to how it works, you can then consider handing over more work. I've written a blog post about how to prepare your business for working with a VA - click here for more info.

The choice between a VA and a part-time employee ultimately depends on your business's unique circumstances. By carefully weighing the advantages of each option and aligning them with your business goals and business circumstances, you can make an informed decision that propels your business toward greater efficiency and success.