Running a small business can feel like juggling all the tasks, all at once.
From managing client relationships to overseeing operations, the workload can be overwhelming. And that’s where external support comes in—whether it's through hiring employees, virtual assistants (VAs), or integrating AI into your processes. But which option is right for you?
We touched on the key differences between hiring an employee, working with a VA, or implementing AI in our last episode (listen to that below), and today we're diving even deeper into the pros and cons of each option to help you make the right decision for your business.
Hiring an Employee: The Pros and Cons
Pros:
In-Person Support: If you need someone physically present, an employee is your best option. Whether you have a reception area or need face-to-face client interaction, an employee provides that essential on-site presence.
Direct Control: With employees, you have direct control over their work hours and tasks. You can manage their productivity more closely and integrate them deeply into your team.
Long-Term Commitment: Employees are generally looking for stable, long-term positions, which means they can grow with your business and become integral to your team.
Local Knowledge: Employees familiar with New Zealand business culture and local practices may be better suited for roles that require understanding the local market.
Cons:
High Cost: Employees come with significant costs beyond salary—such as PAYE, holiday pay, Kiwisaver, equipment, and subscriptions. This is often the most expensive option.
Unproductive Time: You pay employees for breaks, water-cooler chats, and any downtime. At the absolute most, an employee would be 80% productive during an 8-hour workday, however recent studies show that the average office worker is productive for less than 40% of their day.
Time-Consuming Onboarding: Hiring and onboarding employees is a lengthy process. From recruitment to training, it can take months before they’re fully integrated into your team.
HR Compliance: Managing employees means handling complex HR issues, including contracts, grievances, and compliance with employment laws. Getting these wrong can lead to serious issues.
No Flexibility: If your workload drops, you’re still committed to paying their salary. Employees also don’t offer flexibility if they fall sick or go on leave—you’re left managing the gap.
Hiring a New Zealand-Based Virtual Assistant
Pros:
Productivity-Based Payment: Unlike employees, you only pay a VA for the hours they actually work. No more paying for unproductive time, making it a cost-effective option in the long run.
Flexible & Scalable: VAs offer more flexibility in terms of hours and tasks. You can scale up or down depending on your business needs, without worrying about long-term commitments.
Proactive Support: New Zealand-based VAs are often highly proactive, offering solutions and taking ownership of tasks without much supervision.
Access to Broader Skills: Working with a VA agency gives you access to a wide range of skills. From administrative support to bookkeeping and design, an agency can cater to all your business needs.
Continuity of Service: If your VA goes on leave or becomes unavailable, the agency provides a backup, so your business never misses a beat.
Cons:
Higher Hourly Rate: The hourly rate for a VA is often higher than an employee's, but it’s important to look at the overall monthly cost, which is still likely to be lower due to increased productivity.
Remote Only: VAs work virtually, so if you need someone in person, this option won’t work.
Learning Curve: While you don’t have to train a VA on how to perform tasks like managing your inbox, they still need time to learn your business and preferences.
Hiring an Overseas Virtual Assistant
Pros:
Cost-Effective: The biggest advantage of an overseas VA, particularly from countries like the Philippines or India, is the significantly lower cost. The hourly rate can be a fraction of what you’d pay a New Zealand-based VA or employee.
Different Time Zones: This can be a pro or con depending on your needs. If you prefer waking up to completed tasks, an overseas VA working overnight may be ideal.
Cons:
Requires More Management: Overseas VAs often need more detailed instructions and closer management. They are typically more reactive than proactive, requiring clear task descriptions and expectations.
Communication Barriers: While many overseas VAs speak excellent English, language and cultural differences can still lead to misunderstandings.
Time Zone Differences: The time zone gap can lead to delays in communication, especially if you need real-time responses.
Less Proactive: Overseas VAs are usually great at process-driven tasks but may not take the initiative to suggest improvements or take ownership of broader tasks.
Internet Stability: Depending on their location, power cuts and internet outages can be common, disrupting their ability to complete work.
Using AI and Automation
Pros:
Perfect for Repetitive Tasks: AI thrives on repetitive, process-driven tasks. Automating jobs like sending follow-up emails or scheduling social media posts can free up hours of your time.
Cost-Effective Over Time: While there may be an initial setup cost, AI can save your business money in the long run by reducing the need for human intervention in repetitive tasks.
Scalable: AI can handle large volumes of work with minimal input, making it a great option for businesses looking to scale without increasing their team size.
Cons:
Initial Setup Costs: Implementing AI can be expensive upfront. It takes time and money to integrate these systems into your business effectively.
Steep Learning Curve: AI tools can be complex, and it takes time to learn how to use them to their full potential.
Lacks Human Touch: AI lacks the personal touch that comes with human interaction. If your business requires a high level of customer engagement, this might not be the best option for all tasks.
Not 100% Automated: Many AI tools still require human intervention for certain tasks, meaning they aren’t entirely set-and-forget.
So, Which Support System Is Right for You?
There’s no one-size-fits-all solution. It all depends on your business needs, the tasks you want to offload, and how much control you need. In many cases, a mix of support types—like a local VA for high-value tasks, an overseas VA for process-driven work, and AI for automation—can give you the best of all worlds.
If you’re still unsure, take our quiz below to discover what type of support might be the best fit for your business.
Finding the right support system is crucial to streamlining your business and driving growth. Whether you choose an employee, a local VA, an overseas VA, or AI, the right choice will depend on your business goals and how much management and oversight you’re willing to commit to.
Ready to dive in? Let’s chat about how we can help you implement a solution tailored to your needs.
