Top 3 Ways a Virtual Assistant Can Help Save Cost Up to 78%
Last updated on December 8th, 2025
Save Up To 78% with Virtual Assistant Services; Want to Know How?
It’s no secret that a virtual assistant (VA) can be highly beneficial to your business. Hiring and managing a virtual assistant is not only helpful in improving productivity but can also significantly reduce your operational time and expenses. Current research suggests that by utilizing professional virtual assistant services, businesses can achieve cost savings of up to 78% compared to hiring a traditional full-time employee.
The cost of engaging a virtual assistant is significantly lower than hiring in-house personnel. Furthermore, virtual assistant service providers manage their own taxes, insurance, and retirement accounts, directly removing these considerable financial and administrative burdens from your business.
Here is a detailed breakdown of how partnering with a virtual assistant can help you save cost:
Table of Contents
1. You can Save an Average of 30% of Your Overheads
2. Save Up To $4,700+ on Onboarding Costs
3. Reduce the Financial Impact of Employee Turnover
Tips to Increase Your Saving by Working Effectively with a Virtual Assistant
1. You can Save an Average of 30% of Your Overheads
The cost of mandatory and optional employee benefits can raise the actual expense of hiring a full-time employee by an average of 30% of their base salary for private industry workers in the US (Source: Bureau of Labor Statistics, 2025).
If you hire a full-time employee, your company is responsible for:
- Benefit Costs: Including medical insurance, family coverage, and retirement benefits. For private industry workers, benefits average 29.8% of total compensation (BLS, 2025).
- Payroll Taxes & Compliance: Legally required benefits like Social Security and Medicare taxes, plus unemployment insurance, which must be paid by the employer.
- Office & Equipment Overheads: Expenses can significantly rise if your company provides mobile phones, internet connections, laptops, essential software licenses, and dedicated office space for an in-house team.
Since you only compensate your virtual assistant with a simple, agreed-upon monthly or hourly fee, you eliminate the entire burden of employee-related taxes, benefits, and office setup costs. Moreover, hiring VAs on an hourly or project basis allows you to only pay for the time worked, further reducing wasted expenditure.
2. Save Up To $4,700+ on Onboarding Costs
The average Cost-Per-Hire (CPH) across all roles in the U.S. is approximately $4,800 in 2025, with non-executive roles costing less and executive roles significantly more.
When hiring a full-time employee, you invest considerable time and resources into the recruitment lifecycle:
- Recruitment Expenses: Job ads, recruiter fees, pre-employment testing, and background checks.
- Managerial Time: Costs associated with HR teams, interview panels, and the time managers spend vetting and training new hires.
- Onboarding: The lost productivity period while a new employee ramps up to full efficiency.
The virtual assistants can start right away!
By outsourcing, these expenses are already managed by the VA service provider. Many virtual assistants are highly trained specialists with significant experience in niche areas. For example, a high percentage of VAs hold Bachelor’s or Master’s degrees. This means the VA outsourcing company can often allocate an expert with the qualifications you need, eliminating your necessity to invest in foundational training.
3. Reduce the Financial Impact of Employee Turnover
Employee turnover is one of the most significant, and expensive, challenges for businesses. Replacing an individual employee can cost between 50% and 200% of that employee’s annual salary, depending on the role’s seniority (Source: Work Institute, 2025).
The cost of turnover includes:
- Direct Costs: Separation costs, replacement costs, and training the successor.
- Indirect Costs: Loss of company knowledge, decreased productivity across the team, and reduced morale among remaining employees.
Hiring virtual assistant services can help mitigate this problem. When you work with a VA firm, they are responsible for staffing. Your contract is with the agency, not the individual, which provides a layer of stability and legal certainty for their tenure. If one VA needs to be replaced, the outsourcing company handles the process, minimizing the disruption and direct financial impact on your business.
Tips to Increase Your Saving by Working Effectively with a Virtual Assistant
Now that you know how a virtual assistant outsourcing company can save you up to 78% of your expenses, let’s see how you can maximize those savings:
- Be Strategic About Task Allocation: Focus on delegating the high-volume, low-value tasks (like scheduling, email management, and data entry) that consume your time and prevent you from focusing on core revenue-generating activities.
- Give Virtual Assistants Access to Organizational Resources: Create a secure, shared file repository for your internal team and your VA provider. Keep essential documents, software credentials, and standard operating procedures updated. This allows your VA to work independently and efficiently without having to chase people for information.
- Share Your Expectations & Reward Performance: Clearly define the role’s Key Performance Indicators (KPIs) and quality standards from the beginning. Treating your VA as an integral part of your extended team and offering positive recognition for a job well done can lead to higher engagement and better performance.
Wrapping Up
A virtual assistant is an exceptional, cost-saving, and high-impact addition to any team, particularly for a small business or a growing enterprise. At Vgrow, we maintain a team of highly-educated, qualified, and experienced virtual assistants ready to help you reduce operational expenses and substantially improve your business performance. Our competitive virtual assistant costs are designed to meet the budget needs of startups and MNCs alike. You can now hire our virtual assistants at an extremely budget-friendly rate of just $6/per hour.
Frequently Asked Questions
1: Is hiring a VA cheaper than hiring an in-house employee?
Yes, significantly cheaper. When you hire a VA, you only pay for their work hours or specific project fees. You avoid the major financial burden of salaries, payroll taxes, employee benefits (like health insurance and paid time off), recruitment fees, and office overhead costs (equipment, rent, utilities).
2: Do I have to pay for the VA’s computer or software?
No. A Virtual Assistant is an independent contractor and is responsible for providing their own equipment, including their computer, internet, and standard software licenses. You are only responsible for purchasing any specialized software that is unique to your business and required for their tasks (e.g., a specific CRM subscription).
3: What are the tax responsibilities for my business when I hire a VA?
Since a VA is typically an independent contractor, your business is usually not responsible for withholding or paying employment taxes (like Social Security or Medicare). You simply pay the VA’s invoice, and this payment is treated as a deductible business expense. The VA is responsible for paying their own taxes.
4: How do I make sure the VA is actually working the hours I pay for?
Most professional VAs use time-tracking software that generates detailed reports, often including task descriptions and screenshots, to verify their work. You pay only for the productive time spent on your tasks, ensuring a high return on your investment.
5: Can I hire a VA for just a few hours a week?
Yes. One of the biggest advantages of a VA is flexibility. You can often hire a VA on a part-time basis for as little as 5 to 10 hours a week, and then easily scale their hours up or down as your business needs change, giving you cost control.
Kimberly Morrison
Kimberly Morrison has been the Director of Client Relations at VGROW since 2019. She builds strong customer relationships, drives client retention, and oversees team productivity. Kimberly's approach to customer engagement is key to VGROW's aim of streamlining business processes through virtual assistance services.
