Cheap versus Cost-effective:
A Cost Benefit Analysis of VAs and AOAs

Virtual assistants (VAs) and administrative office assistants (AOAs, also called temps) are touted as a solution to overworked and understaffed offices and professionals, but that solution comes at a price. A cost benefit analysis helps understand what you're getting for your money.

VAs and AOAs generally charge between $25 and $50 an hour depending on the service. That's a lot of money for a company or individual, and no one can be expected to pay such a rate when they don't understand what they're actually getting.

Because of this, a common complaint from individuals considering a VA or AOA is that the price is too steep and that it would be cheaper to hire a high school student. To that, I can only answer that if all you compare is the price, then ... yes, absolutely, you can hire and pay the average student at a cheaper rate than you would pay for a VA or AOA.

To be completely honest, if all you need is data entry and you're not particular about how long it takes, then a VA or AOA could well be overkill. However, if you want a fast and accurate typist, then you need someone who has spent considerable time developing that skill. No offense to high school students, but high-speed and accurate typing isn't that common of a skill for the average student.

If the work is slow, then you will pay more in the long run as it will take more hours. If the work is inaccurate, then you will have to take time to check on and fix any problems. This adds the time and cost per hour of the proofreader to the project, with the added cost of taking that person away from other projects. Additionally, there are intangible costs -- having to take your time to find someone to proofread the project, either making the corrections in-house or having the student make the corrections, and the overall aggravation of discovering that the project suddenly isn't as finished as you thought. At the very least, you would be better served to hire a data entry professional.

Even for standard data entry, a VA and AOA provides significant benefit to balance out their higher cost; but where they really shine and earn their pay is on projects that require a range of administrative skills and services.

A high-school student may be able to type, file and stuff envelopes, but a good VA and AOA can do so much more than that. A skilled assistant (whether virtual or in-office) has all of the basic office administration skills plus the business background to prepare customer letters and emails, respond to inquiries, create presentations, design and maintain spreadsheets and/or databases, take customer calls, call the customer back and otherwise handle the full range of services a professional expects from his or her administrative staff.

If you hire a student or other low-wage worker for basic work and then ask them to handle other admin duties, you are likely to hear one of two things...

"That's not what you hired me for!"
or
"How do I do that?"

This is due in large part to having little to no actual admin experience, resulting in a lack of understanding of what is actually involved. If you hire someone with this level of experience to "type and file", they may very well balk at doing anything else.

When you ask a VA or AOA the same question, however, you should expect a far different answer:

"OK, I know how to do that; when do you need it?"

Because of their experience in administration, the VA and AOA has a much more realistic expectation of what is involved under the heading of "administrative and other duties" -- they should be able to provide whatever administrative help you need.

Now for the cost benefit analysis that I promised. The table below shows an comparison between a VA or AOA and an "Average Student". The more cost-effective option is in green, and the more expensive option is in gray.

Cost per hour: The average student will work for less per hour than a VA or AOA.

Speed: The VA or AOA is faster and more efficient (due to having more experience and familiarity with the process or skill). As an example, 2 hours at $30 an hour is still cheaper than 8 hours at $10. Note: This is only an example and should not be taken to imply that a VA or AOA is 4 times faster than an average student; how much faster a VA or AOA actually is depends on a number of factors.

Skill Range: A single VA or AOA can handle multiple projects that would otherwise require more than one student worker.

Expectations: This is an intangible benefit ... realistic expectations based on experience allows you to request additional work without complaint or competency issues.

Your time: This covers all of the factors which involve your having to spend time on the project. With a professional VA or AOA, your time is minimal.

As you can see, the added "hidden" benefit of an experienced virtual assistant or highly-trained administrative office assistant is just that ... experience and training. The cost per hour will be more than you would pay an average student; however, the benefits in terms of time spent on project, your time, the number of workers required and the intangibles makes using a VA or AOA well worth the money.

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