How to decide whether to employ an EA or outsource to a VA

When you need an extra pair of hands in your business, one of the hardest decisions can be whether to go down the employee or contractor route… and it can be daunting. This blog post explores the pros and cons of each option, plus key things to consider so you make the right choice for your situation and the relationship gets off to a great start.

Should I hire an employee or an independent contractor?

There’s actually no right answer – it entirely depends on your circumstances, what the long-term goals for your business are, and your financial position.

Even as a virtual assistant agency, there are many occasions where we’ve advised either a potential client or an existing client that they should hire an employed executive assistant (EA). On the other hand, we regularly support growing businesses with ongoing virtual assistant (VA) support, which works brilliantly for many of our clients long-term. 

What’s the right move for one business isn’t the best choice for another. It’s certainly not a one-size-fits-all solution – it depends on the role you want someone to play in your business, their day-to-day tasks, and the skills you need. 

3 things to consider before you hire an employee or contractor

Here are the key areas you need to consider before you hire someone – whether that’s an in-house employee or an outsourced contractor such as a VA. Doing this first means you can select the right fit from the get-go. 

1.  Workload and project needs

Before you can decide on the best solution, you need to define the person’s role and responsibilities. The best starting point is working out which specific tasks you need to delegate… and whether that’s ongoing support or it’s for a specific project or timeframe. Start with a list of everything you can think of, splitting it into ‘right now’ priorities and future goals. 

From our experience, the most common tasks you can delegate fall under the following categories: 

• Diary and inbox management 
• Bookkeeping and finance 
• General admin 
• Marketing 
• Recruitment 

For the tasks you do yourself, if you aren’t already, start tracking your time as a CEO to see how long they really take you. But if those tasks you need support with are the ones you never get around to or are beyond your skillset, be realistic about how long they will take. And remember, for anyone new joining your business, you should account for an initial learning curve.

When you have your full list of tasks, you can map out how much support you need per week, what type of person would be best suited for these tasks, and whether you need someone whose responsibilities may grow over time. You will also know if you need someone highly skilled in a certain area or someone who offers more general support. 

If you need help working out what level of support you need, take our free quiz here. 

2.  Flexibility and scalability 

If you want someone available at a moment’s notice who is working set hours and solely focused on your organisation, an employee might be the right call. But if you think your workload will fluctuate each month then a contracted VA would be ideal as they can be flexible to provide only the support you need.

Maybe you have seasonal demands such as hosting events at different parts of the year or you’re anticipating growth in the next 6-12 months… this means you might not want to commit to someone full-time, so therefore you would prefer to work with a VA whose hours you can increase over time. 

3.  Cost

As with all business decisions, cost is a key driver when deciding whether to hire an employee or outsource to a VA. But it’s not as simple as comparing two hourly rates… The true cost of hiring an employee involves much more than their salary. You need to factor in other costs such as: 

• Pension 
• Benefits 
• Equipment and training 
• Paid time off for holiday and illness 

When you hire a VA, the initial cost may seem higher, but there are no hidden fees. VAs pay for everything else themselves, so you only need to factor their hourly rate into your budget, which makes your financial planning simpler. 

With VAs you have the bonus of only paying for the support you need, as you can dial the support up and down. You can also grow a team of virtual assistants over time, each with their own skillset, so you can cover more of your tasks than with one employee.

Hiring an in-house executive assistant

If you need a task-driven person for a set amount of time each month, someone whose only focus is your business, then employing a dedicated EA could work well for you. 

Pros of employing

Your new executive assistant would be: 

• Available at a moment’s notice as they work set hours
• Invested in your business growth with a long-term commitment 
• More responsive when communicating with other team members and clients 

Cons of employing

On the other hand, they would also:

• Come with much higher ongoing costs of employing an executive assistant – plus you might struggle to afford someone at a high operating level on a salary
• It’s unlikely they will have experience running a business or in wider areas – more training and development time would be required

Outsourcing to a virtual assistant 

A VA is also a business owner in their own right. This experience can prove really useful as they can become a support partner offering advice and guidance on other business aspects – something an in-house EA wouldn’t necessarily do. If you’re looking for someone who can hit the ground running while being flexible to your ever-changing business needs, hire a VA.

Pros of hiring a contractor

When you work with a virtual assistant, they: 

• Have no hidden costs – you pay for what you need each month
• Need less commitment – scale the support up and down as business fluctuates
• Are often more experienced – many operating their own successful businesses

Cons of hiring a contractor

The downsides of working with a VA are: 

• They have limited availability for immediate, reactive tasks – VAs have other clients 
• It’s sometimes more difficult for VAs to integrate into your business fully and build relationships when only hired for a few hours per month

Is an employee or independent contractor best for your business?

To decide whether you should employ an EA or hire a VA, you need to first be clear on your specific needs, budget and long-term goals. And most importantly, consider who will be the right fit for your organisation’s unique requirements. 

Only you can make the final call, but if you’re still on the fence about who to hire, we’re always happy to help you make a well-informed, non-biased decision about what’s right for you. Book a call to discuss your business needs with Virtually Priceless.