A virtual assistant can help you increase profits with improved productivity, saving valuable business dollars
When employing a staff member, consider the hidden costs over and above their hourly rate. In addition to the hourly rate is the cost of Superannuation (currently 9.5% and increasing to 12%), Work Cover (average 2.03%), annual leave, sick leave, long service leave accrual obligation. Then factor in meetings, ‘water cooler’ chats, tea breaks, ‘how was your weekend’ chats, personal phone calls/text messages …….. taking all this into account, it begins to add up.
Consider two examples of an hourly rate paid to an employee, $25 and $30 per hour.
Unfortunately not all of the above costs mean productive time for your business. Examples of lost or unproductive time are ‘Water cooler’ chats, tea breaks, ‘how was your weekend’ chat, personal phone calls, long lunch, meetings, ‘go to the shop for a minute’.
Staff are being paid during this time, therefore the real cost of these hours have a dollar value and are unproductive for the company. These unproductive hours are estimated as approximately 1 hour for every working day, that’s 220 hours per year with a dollar value (paid to the employee) of $7,125.80 (or $8,371.00 in example 2).
Public holidays, annual leave, sick leave, long service leave account for a total of 336.93 hours per year with a dollar value (paid to the employee) of $10,913.16 (or $12,820.18 in example 2).
The total unproductive hours above of 556.93 hours have a dollar value to the employer of $18,038.96 (or $21,191.18 in example 2). If the employer were to pay someone else to gain back full productivity or add this to the initial calculated rate of $32.39, the hourly rate is actually $41.52 (or $48.77 in example 2). This is a vast contrast to the initial $25 per hour.
Another way to look at this is to say that the employee is being paid for 1,976 hours each year (based on 38 hours per week), however the employer is only getting 1,419 hours of productivity.
The employee is being paid 557 hours each year for doing nothing.
How will a Virtual Assistant help you overcome this?
Using cloud based time tracking software, each hour/minute spent on your project is recorded as the work is carried out. This time tracking software allows the timeclock to be paused when my attention is diverted away to another project, or to allow me to continue your project at a later time or day.
When progress reports are presented to you for analysis, a detailed summary of the time and date spent on your project will be provided in a report format, allowing transparency on how your business dollar is being spent.
Using the data shown above, if Virtual Business Admin were to provide your business with the same productive hours as your full-time employee (being 27 hours per week) our rates will provide you with an 8% to 27% saving on wages.