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Why employing full-time administration staff is costing you more than you think.
Posted By mark On August 9, 2007 @ 11:29 am In Business Advisory Services | 5 Comments
The cost of employing full-time administration staff is costing you more than you think. Added to their salaries, you will have to pay them holiday & sick pay; other government taxes; training costs and they will have regular “down-time”. And don’t forget the overheads associated with it – a telephone; desk & chair; insurances; software; stationery and many more expenses.
Consider the following example: You employ Mary as an Office Administration clerk to prepare your invoices; answer the telephone; type; collect and sort mail and do your banking. She works (or you pay her for) 37.5 hours per week. Her salary is $40,000 per year and she is entitled to 20 days annual leave. She also has 5 days off sick each year (she says she’s “entitled” to them and she’ll use them!) and needs 5 days training at an external training provider. She’s also entitled to 11 public holidays per year. You know that for 25% of her time she is not busy. On the face of it, you think you are paying her $20.51 per hour.
However, when you account for her absences and non-productive time, you’re really paying her $32.47 per hour…almost 50% more…and this does not include the overhead costs I mentioned; which may add up to several hundred dollars per year.…
Contrast this to using a virtual assistant (VA).In a conventional office, they are often called “administrative assistants” but to the ‘on-line’ world, they are called “virtual assistants”. They are both the same type of people but with one significant difference: a VA works usually from their own office and uses their own equipment instead of being physically present in your office to carry out the work. Alternatively, they can come to your office. As a VA, they are not expensive employees but self-employed professionals.
Generally, a VA will be well educated; hard working; have a proven range of skills; and use a wide range of computer software. This helps them to provide their clients with a tailor made service leaving their clients to focus on other business needs. Most VA’s will have previously worked as a secretary, personal assistant, clerk, etc and it is likely that they have worked at the highest level in their particular field of work. They are well trained and keep their skills up to date at their own expense.
When starting a new business, it is inevitable that small business owners tend to handle all aspects of their business. At some stage, a business will reach a point where too much time is spent on administration; rather than generating income. That’s a lot of valuable time spent on an area that may not be your expertise. By engaging a VA, you free up that time to focus on what you do best!
VAs provide a professional presence in foreign countries for international companies. If you use a VA abroad, you will have a mailing address and a phone number without the overheads involved in setting up an office. If you are away (holiday, business trip, etc), it’s possible to have incoming mail forwarded to the VA’s address.
The case then, is pretty straight forward for many small business owners.
I outsource ALL of my administration work to Karen and her team at Office Elves (www.theofficeelves.com [1]). I do not have to employ administration staff; I know that my administration gets done professionally; within budget and on time. I recommend you consider using a VA; it will save yourself some headaches.
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[1] www.theofficeelves.com: http://www.theofficeelves.com/
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