5 Reasons Hiring A Virtual Assistant Is More Cost Effective For Your Small Business

Sarah Clarkson • October 26, 2021
woman works on a laptop as a virtual assistant for a small business

Remote technologies are changing the way business is done. New devices and software platforms have made remote work more practical and possible than ever before. Fast and stable internet connectivity, video conferencing and instant messaging tools, cloud storage, and file-sharing applications allow for high levels of collaboration between colleagues, regardless of location or proximity. 


Today, hiring an employee is no longer necessary - or economical - to help make your business run smoothly. 


Hiring a
virtual assistant is definitively more cost-effective for small businesses. Here are five reasons why:


1. SAVE ON OVERHEAD AND NEW HIRE EXPENSES


Traditionally, an employee is a person hired as a permanent member of the staff. Employers determine the employee's working hours and salary and establish where the employee will physically work (typically, an office environment). The employer pays for and provides the workspace, office equipment, and access to whatever tools are necessary for the employee to complete their work. The employer will also pay for and provide training for their new employees to learn the business's workflow.


Employers are responsible for withholding and paying the employee's taxes and offering benefits and insurance. The government requires employers to provide Social Security, Medicare, federal and state unemployment insurance, and workers' compensation. Additionally, most employers pay sick, vacation, and overtime pay. To compete with similar companies vying for employees, some employers will offer additional "fringe" benefits like free lunches and gym memberships to attract and retain employees. 


All these costs add up.


In contrast, virtual assistants are independent, self-employed contractors who file 1099 taxes and provide their own medical insurance. They work remotely, often from their own home, and are accountable for all expenses they incur. This typically includes their computer equipment and internet service, software subscriptions, and other workplace items. 


Additionally, virtual assistants have already acquired
the skills and training needed to execute their tasks before taking on a client. They train on platforms on their own time. A small business can choose what virtual assistant best fits their needs and only contract with someone who already has experience on the platforms used. Many virtual assistants will offer to train on specific technical platforms prior to beginning work with a new organization.


2. ONLY PAY FOR HOURS WORKED


Although the
pay rate for a skilled virtual assistant may seem high at first glance, the costs of taxes, benefits, office equipment, and vacation and sick time add to the cost of hiring an employee.


This graphic illustrates the unseen costs added to the base pay of a traditional employee:


graphic shows cost comparison between employee, virtual assistant and doing the work yourself

At first glance, a lower hourly rate of $20.00 an hour appears to be a good value… but that doesn't factor in the additional nearly $26.00 a business has to that employee in the way of benefits. According to the latest data from the U.S. Bureau of Labor Statistics (BLS), benefit costs add approximately 29% to an employee's total compensation. 


The equivalent cost to a small business using the services of a virtual assistant is zero. 


Therefore, if a virtual assistant charges $42.00 for their hour of work for your small business, that is the total sum owed for each hour they work. 


A part-time employee - even one working for less money per hour - will cost an employer more than a virtual assistant.


Additionally, a traditional employee gets paid their agreed-upon salary regardless of the changing circumstances small businesses face. That means an employee receives the same amount irrespective of slow times when cash is low, and the need for their contribution is minimal. 


When you hire a virtual assistant, you are only responsible for paying for the actual hours worked or the agreed-upon project rate. 


Virtual assistants understand that small businesses are fluid environments with fluctuating cash flows. The budget to afford outsourcing tasks is often unstable. When money is tight, or there is a downturn in the amount of work needed, virtual assistants understand this means a decrease in the number of hours they will work - and this is okay! Virtual assistants understand the landscape in which they operate and can nimbly adjust to the changing needs of their clients. 


3. FLEXIBILITY EQUATES TO COST SAVINGS


Many working in the field have chosen to become virtual assistants because of the flexibility the work allows them. Many prefer working outside the traditional 9-5 workday. This is cost-effective for small business owners. They can designate what hours work needs to be completed and find a virtual assistant to fill that time slot. Ecommerce or businesses with a need for 24-hour customer service benefit tremendously from having a virtual assistant working nighttime or off-hours. 


Fluid hours of work could make the difference in a small business reaching the next level of success.


Companies like Freedom Makers have
military spouse virtual assistants working across multiple time zones - even worldwide - as most are living near the military installation where their spouse is stationed. Having work completed while you sleep or before you begin your workday can be a considerable cost benefit to a small business owner.


Additionally, the flexibility inherent in virtual assistant work also means that last-minute requests, unforeseen circumstances, or
special projects are more easily accomplished. Most virtual assistants are highly skilled in multiple areas due to years of varied professional experience. They are self-directed in their learning and training to accommodate different clients.


On the other hand, a traditional employee might not feel comfortable completing tasks outside their established schedule or responsibilities without additional training. 


This is where the flexibility of a virtual assistant becomes cost-effective.


When running a small business, you might need help with tasks like content writing, invoicing, technical support, or
social media marketing. Instead of spending time and money training an employee to do new skills, business owners have the flexibility to hire a multi-skilled virtual assistant who can do all the things needed or multiple virtual assistants to have each task accomplished quickly and professionally. 


4. TIME NOT WASTED = MONEY SAVED


Traditionally, employees are often less productive than virtual assistants. Office environments can create many distractions. Chatting with colleagues, extended lunch breaks, appointments during working hours, and office celebrations are all common workplace occurrences that slow productivity and can become barriers to efficiency.


By their nature, virtual assistants must be self-driven and independent. They are skilled time managers and know that dedicated, focused work earns their success and reputation. They are motivated, capable of being more productive, and do more in less time than traditional employees. Many virtual assistants create
time blocks to ensure they are productive and work with time tracking tools that ensure diligence through transparency. And because they work from a remote location, they are inherently less distracted. 


5. TURNOVER COSTS


If a salaried employee decides to quit, or the business owner wishes to sever the working relationship, it costs approximately 33% of that employee's salary to find a replacement. The time-intensive interview process, cost of reference checks, and zero productivity during turnover mean a significant monetary loss for a small business. Additionally, time and money will have to be invested in training the new hire to get up to speed where the old employee left off.


These costs do not exist with virtual assistants. 


Virtual assistants are easy to replace if the relationship does not work out or if circumstances change. They simply stop working for you, and you stop paying them. There may be a slight gap during turnover, but bringing on a new skilled virtual assistant is a more manageable and much less expensive endeavor.


But of course, turnover is not desirable. To limit any loss of productivity, Freedom Makers provides
Success Managers who nurture virtual assistant/client relationships to ensure they are a success. If a problem arises, Freedom Maker Success Managers work on behalf of the client and the virtual assistant to ease communications and find a resolution. This assistance can be an invaluable cost saving for a small business.


In Conclusion


Any small business owner or entrepreneur will tell you that the recipe to grow a business successfully includes several main ingredients. They are time, effort, and money. Today, more and more small business owners will tell you that a virtual assistant is an additional critical ingredient in the success equation. 


The right virtual assistant can save a business owner time and money... allowing them to put more effort into the creative endeavors that lead to success.

Freedom Makers Blog

Small business owner
By Sarah Clarkson July 25, 2025
The statistics are striking: 81% of business owners work nights 89% work weekends Many work more than 49 hours a week Yet, research shows that working more than 40 hours per week negatively impacts our health, relationships, and longevity. Burnout, exhaustion, and chronic stress often follow. How do small business owners avoid this trap without sacrificing their goals? At Freedom Makers, we believe the answer isn't about "balance." It's about work-life integration. What Is Work-Life Integration? Unlike "balance," which weighs work against life, integration means designing a life where your work and personal priorities coexist naturally. In other words, it's not about splitting time evenly. It's about making space for what matters most. That starts with outsourcing the tasks that drain your time and energy. Work-Life Integration in Action JD Schramm , a leadership communication coach and longtime business owner, knew the value of staying close to his clients. However, operational tasks kept chipping away at his focus. In his case, he didn't decide to bring a Freedom Maker virtual assistant onto his team to get more done. Instead, he started outsourcing tasks to a virtual executive assistant to get back to his purpose. As he explains, "I'm no longer the one digging into slide formatting, onboarding tools, or payment processors. My EA figures it out, gets it done, and keeps things moving." Before that, he was the one managing every detail, which left little time for what actually mattered. JD needed a partner to manage the back-end logistics so he could stay forward-facing with clients. Freedom Maker Jacqueline came on board and has built systems for email triage, CRM upkeep, event coordination, Zoom logistics, and follow‑ups. With Jackie handling his systems, onboarding tools, and back-end logistics, JD has found space again for his clients, his business growth, and his personal life. "Since bringing on an EA through Freedom Makers Virtual Services, I've been able to shift more of my focus back to clients and business development... That time back has made room for deeper client work as well as for family time I wasn't getting before." – JD Schramm JD's experience is a clear example of how outsourcing the right tasks can create more space . How you use that space - for deeper client work, for family time, or working in the parts of business that energize you - is up to you. In JD's case, he didn't split his time more evenly between "work" and "life." He simply started spending his work time on the things that truly needed his focus, and handed off the rest. Where to Begin: The Task Audit Most small business owners are caught in the weeds. Not because they're doing anything wrong, but because they're doing everything. Most don't start their companies to spend their days in spreadsheets, answering scheduling emails, or manually updating CRMs. And yet, that's precisely what consumes so many of their hours. Entrepreneurs don't lack vision. They lack capacity. We encourage the small business owners who come to us for support to hand off tasks of their choosing to a Freedom Maker virtual assistant. Not everything needs to be outsourced. Some operational tasks might actually energize you or help you feel grounded within your business. Those drivers are unique to you. Our Task Audit is a free tool that helps you: Identify what truly needs your attention Highlight what can be handed off Begin prioritizing your time more strategically Work-life integration doesn't happen by accident. It's a choice, and it starts with deciding what you can let go of. We believe in creating pairings that support you and your business where you need and want assistance so that you can lead your business with clarity and intention. 🡆 Take our Task Audit and begin your journey to true integration. 🡄 And if you are already working with a Freedom Maker, now may be the perfect time to take your delegation journey to the next level. If you've already outsourced your inbox or calendar, what's next? Use our Assignment Task Audit (found on your Client Resources Page) to: Reevaluate what's still on your plate Identify new areas your Freedom Maker can support Continue evolving your partnership toward even better integration Reclaim Your Time And Realign Your Energy Work-life integration isn't a milestone you reach; it's something you continually shape. Just as your priorities shift as your business grows, so will your work-life integration. When you get clarity on what you are willing to outsource, you let go of the tasks that no longer require your direct attention, you make room for the kind of presence that fuels both your business and your life. So, whether you're just starting to explore outsourcing or already working with a Freedom Maker, take another look at your task list. The more intentionally you delegate, the more fully you can show up for your business, your clients, and yourself. Reach out to our Discovery team today so we can help you find the right support for your unique business needs.
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