As your business grows, so does the mountain of day-to-day tasks demanding your attention.
To sustain this growth, you need help. But the big question is: should you hire an employee or a Virtual Assistant (VA)?
Each option has its benefits, and the right choice depends on your business needs, budget, and flexibility requirements. Let's break it down.
What is a virtual assistant?
A Virtual Assistant works remotely, providing administrative, bookkeeping, creative, and other specialist services to businesses. They are either self-employed or work within a larger VA agency like Strictly Savvy.
Unlike an employee, a VA offers flexibility, allowing you to scale support up or down as needed. You only pay for the time they work on your tasks, making them a cost-effective alternative to hiring in-house.
While both an employee and a VA can help clear your to-do list, there are key differences between them. Understanding these distinctions will help you decide which option best aligns with your business goals.
Breaking Down the Costs
At first glance, a VA's hourly rate may seem higher than that of an employee. However, there are several hidden costs associated with hiring an employee that need to be considered.
Key Cost Factors:
Salary vs. Pay-as-You-Go: Employees require a fixed salary regardless of workload, whereas a VA only charges for productive time spent on tasks.
Overheads & Benefits: Employees come with additional costs like office space, equipment, training, paid leave, and KiwiSaver contributions.
Recruitment Costs: Hiring an employee involves advertising the role, conducting interviews, onboarding, and training - all of which take time and money.
Productivity Levels: Employees are paid for their entire working day, including breaks and downtime. VAs track billable hours, ensuring 100% productivity.
A Productivity Perspective
Studies show that employees are typically less than 60% productive throughout their workday, meaning businesses pay for more than 40% of unproductive time (e.g., coffee breaks, meetings, and downtime).
On the other hand, a VA only tracks and charges for actual time spent working on your tasks. You never pay for unproductive hours, making your investment more efficient.
* The hourly rate for virtual assistants is based on the average cost across the virtual assistant industry in 2025.
* Hours Per Year Worked for a full-time employee is 2,080 hours, minus leave and public holidays for employees.
* Hours Per Year Worked for a VA has been calculated at 520, (10 hours per week). We have found this to be equivalent to a full-time equivalent role which has been streamlined, automated and 100% productive.
* The average annual Overhead cost for an employee is estimated at $9,000 per year, covering expenses such as courses and training, conferences, computer equipment, desk and peripherals, kitchen supplies, work from home allowances, travel, office supplies, health and safety equipment, health insurance and other employee benefits, mobile phone plan, software subscriptions, and team-building activities.
When Should You Hire an Employee?
An employee might be the best choice if:
You need someone physically in the office or on-site.
You have a consistent, full-time workload that requires daily attention.
You want a team member dedicated solely to your business.
You have the budget to cover recruitment, equipment, and employee benefits.
You can manage workload gaps when they take leave.
You’re comfortable with HR responsibilities, including compliance with employment laws.
When Should You Hire a Virtual Assistant?
A Virtual Assistant might be the better option if:
Your workload fluctuates, and you need flexible support.
You want to avoid the startup and ongoing costs of hiring an employee.
You need specialised expertise (e.g., bookkeeping, automation, social media management) without hiring multiple employees.
You prefer scalable support - easily increasing or decreasing assistance as needed.
You don’t want to manage HR responsibilities.
You require uninterrupted support - an agency-backed VA can ensure coverage during leave.
You’re testing the waters before committing to a full-time hire.
You only want to pay for productive work hours.
Find the Right Fit for Your Business
Still unsure whether an employee or a Virtual Assistant is the right fit for your business? Take our Business Support Quiz to get personalised recommendations based on your needs.
If you’re considering a VA but want to see the potential return on investment, try our ROI Calculator.
There’s no one-size-fits-all answer when it comes to hiring support. If you need someone in-house, committed solely to your business, and available for full-time work, an employee may be the best option. However, if you need flexible, cost-effective, and scalable support, a Virtual Assistant is a smart alternative.
Want to explore how a VA could work for you? Book a free discovery call with our team or drop us a message below and find out how we can support your business growth.
