Every business leader eventually hits a point where the workload outpaces the team. Emails pile up, customer calls slip through, and the “urgent” side of the business steals time away from the “important.” That’s usually when the big question lands on the table: do I hire someone full-time, or do I look for flexible support?
At first glance, hiring an in-house employee feels like the natural move. You get someone dedicated, on your payroll, immersed in your company culture. It’s steady and predictable, but comes with a heavy price tag in terms of their salary, benefits, and office overhead.
On the other hand, a virtual assistant (VA) looks leaner. No benefits, no extra desk setup, and you only pay for the hours or tasks you actually need. For growing businesses, that flexibility can be a lifeline. However, most decision-makers still hesitate, wondering if a VA has the same reliability, loyalty, or expertise as an in-house hire.
The choice isn’t always clear. It’s a trade-off between commitment and flexibility. But in most cases, it boils down to balancing the cost of virtual assistant support adaptability and in-house presence. That’s why it’s worth breaking down both sides carefully. When you see the whole picture, the decision becomes less about instinct and more about strategy.
The True Cost of Hiring an In-House Employee
When you hire an employee, the salary is just the beginning. The line item you see on the offer letter is only part of the story. Here’s where the costs add up:
1. Salary
A mid-level administrative employee in the U.S. averages around $45,000 to $55,000 annually. Entry-level roles might be closer to $35,000. More experienced coordinators or office managers can quickly pass $60,000. That’s just cash compensation before benefits or overhead.
2. Benefits and Insurance
Most businesses can’t compete for talent without offering benefits. Health, dental, vision, retirement contributions, and other perks typically add 25% to 40% to base pay. For that same $50,000 salary, benefits can tack on another $15,000 to $20,000. This is why HR managers often budget a “fully loaded” cost of around 1.3 to 1.4x base salary for each employee.
3. Taxes and Compliance
Employers also cover payroll taxes, unemployment insurance, and workers’ comp – non-negotiable obligations mandated by the government. For a $50,000 salary, plan on $3,500 to $5,000 just for federal and state payroll taxes.
Compliance isn’t just about money, either. There’s time spent keeping up with changing labor laws, filing reports, and maintaining records. For small teams without a dedicated HR department, those tasks often fall back on the owner or senior managers, pulling focus away from revenue-generating work.
4. Equipment and Office Space
Even remote employees need to be equipped. Laptops, monitors, software licenses, cybersecurity, and internet or phone use stipends add up. Outfitting and maintaining a workstation can easily run $3,000 to $5,000 annually. If you’re leasing office space, add another $6,000 to $12,000 annually per desk, depending on location.
5. Training and Onboarding
The Society for Human Resource Management estimates that the average cost to onboard a new hire is $4,700. This covers paperwork, setup, and HR time.
But there’s also the hidden cost: weeks of reduced productivity while the employee learns the ropes. A manager might spend 20 to 30 hours in the first month training and reviewing work. That’s time pulled away from other responsibilities.
6. Risk of Turnover
If that employee leaves within a year or two, you repeat the cycle of recruiting fees, time lost, and disruption to your team. Recruiting firms charge 20% to 30% of the first-year salary. For a $50,000 role, that’s $10,000 to $15,000 just to find the replacement.
Turnover isn’t rare. Gallup found that more than half of employees are actively job-hunting or watching for new opportunities at any given time. That means even well-performing team members may be scanning the market, making retention an ongoing expense rather than a one-time concern.
Sample Calculation: One Mid-Level Admin Hire
- Base Salary: $50,000
- Benefits: $17,000
- Payroll Taxes and Insurance: $5,000
- Equipment/Office: $4,000
- Training/Onboarding: $4,000
- Annual Cost: Roughly $80,000
That’s before factoring in turnover, office rent, or the manager’s time spent supervising. The actual annual burden can easily top $90,000 to $100,000.
The Cost of a Virtual Assistant
Now, compare that to a virtual assistant. The question that comes up most often: How much does a virtual assistant cost?
Hourly Rates and Packages
Depending on region and experience, VA rates range from $10 to $40 per hour. Many agencies offer monthly packages. For example, 40 hours per month for $1,200, or full-time virtual administrative assistant support for $2,000 to $3,000.
The difference isn’t just the hourly rate. It’s the fact that you only pay for what you use. That means your budget goes directly to productive hours, not to downtime, lunch breaks, or lulls in workload.
Task-Based Pricing
Some VAs specialize in project-based work, like inbox cleanup, CRM updates, or data entry. In those cases, you’re paying for the task, not the clock. That can mean a one-time virtual assistant cost of $200 for a database scrub, instead of paying an employee to sit around once the task is complete.
Hidden Savings
Unlike employees, VAs don’t come with benefits, office equipment, or payroll taxes. Training is usually lighter, since you’re plugging them into repeatable tasks.
You’re also saving managerial time. A virtual assistant agency often handles recruiting, vetting, and replacement if someone isn’t working out, removing that burden from you entirely.
Example Calculation: Part-Time VA
A business that hires a VA for 80 hours a month at $20 per hour spends $1,600 monthly, or $19,200 annually. That’s less than one-quarter the cost of a full-time employee.
Even high-end U.S.-based VAs at $30 per hour cost about $57,600 a year for full-time coverage, which is still well below the true cost of an employee.
Virtual Assistant vs. Employee: Side-by-Side
Here’s a simple comparison:
| Cost Element | In-House Employee | Virtual Assistant |
|---|---|---|
| Salary / hourly rate | $45k to $55k per year | $10 to $40 per hour |
| Benefits & insurance | 25% to 40% of salary | None |
| Payroll taxes | 7% to 10% of salary | None |
| Equipment / office space | $3k to $5k per year | None (self-equipped) |
| Training & onboarding | $4k+ upfront | Minimal |
| Turnover cost | High | Low (swap out if needed) |
| Flexibility | Fixed schedule, fixed cost | Scale hours up or down easily |
Beyond the Numbers: Real-World Impact
Numbers are important, but let’s ground this in reality.
Imagine a startup founder with 10 clients, each bringing in $3,000 monthly. Revenue is $30,000. Hiring an in-house assistant at $80,000 annually eats more than a quarter of revenue. That’s a risky move, especially when growth is still unpredictable.
Hiring a VA at $2,000 a month? That’s just 7% of revenue. It frees up the founder’s time without putting the business under financial strain.
Or take a professional services firm. They bring on an employee at $60,000, plus $20,000 in benefits. The person handles scheduling, invoicing, and follow-ups. Six months in, work slows down. The firm is still on the hook for $6,500 in monthly payroll. With a VA, scaling down to 40 hours a month is easy, no layoffs required.
Other Benefits Beyond Cost
The money matters, but cost savings aren’t the only reason businesses turn to virtual assistants. What often surprises leaders is how smoothly their operations run when support can bend and shift with the business.
Beyond dollars and cents, there are practical advantages that touch culture, productivity, and peace of mind:
- Flexibility: Need more hours this month, fewer next month? With a VA, that’s a phone call, not a restructuring.
- Trainability: VAs can adapt to your systems, whether that’s your CRM, your task manager, or your calendar style.
- Reduced Risk: If the match doesn’t work, you can transition out without the legal and financial complexity of laying off staff.
- Global Talent Pool: Employees are tied to your local labor market. VAs can be sourced worldwide, opening access to skills and availability you wouldn’t find nearby.
- Focus: Delegating repetitive work lets your team concentrate on higher-value projects.
Which Option Is Right for Your Business?
There are situations where an employee is the right call. If you need deep expertise, such as that of an accountant, an engineer, or a marketing strategist, hire for that role. Employees are also better if you need someone available every single hour of the workweek.
But a virtual assistant is often the smarter first step if you’re a startup or small business that needs operations support, scheduling, inbox management, or research. The cost of a virtual assistant is lower, the risk is minimal, and the upside is more time for you to focus on growth.
Secure the Right Support for Your Business
The numbers tell a clear story. Hiring an employee means committing to salaries, benefits, and overhead that can easily double the figure you see on paper. A virtual assistant, by contrast, delivers the help you need at a fraction of that cost, with none of the long-term obligations.
If you’re at the crossroads of deciding between an in-house employee and flexible support, start by exploring a VA. It’s the safer investment, the more manageable cost, and often the smartest way to test what real leverage feels like before committing to the expense of a permanent role.
At Magic, we make that step simple. Our assistants are trained to blend into your workflow,
learn your preferences quickly, and take ownership of the tasks that drain your time. Whether you need part-time help or a full-time partner, you can scale support as your business grows.