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The Cost of Hiring a Local Employee vs. a Managed VA

cost of hiring a local employee vs. a managed VA

When it’s time to grow your team, you face a big decision: hire a local employee or work with a virtual assistant (VA)?

On the surface, it might seem like comparing apples and oranges—but when it comes down to cost, flexibility, and ROI, the numbers tell a very clear story.

In this post, we’ll break down the real cost of hiring a local employee vs. a managed VA—so you can make a decision that supports your business, your budget, and your goals.

1. Salary & Base Compensation

Hiring a local employee means paying a full-time salary—even if their workload fluctuates.

In the U.S., the average administrative assistant salary is around $40,000 to $55,000/year, depending on location.

A managed VA service often starts as low as $12–$18/hour with flexible hours based on actual workload.

If you’re a small business or startup, that’s a massive savings right out of the gate.

2. Taxes & Benefits

With a local hire, you’re responsible for payroll taxes, health insurance, vacation days, and possibly retirement contributions.

These hidden costs can add an additional 20%–30% to the base salary.

Managed VA services typically include these costs in their rate—you pay a flat, predictable fee.

3. Overhead & Equipment

Local employees need a desk, computer, software licenses, and sometimes even office space.

VAs already have their own setup—and managed services often cover onboarding, tools, and support structure internally.

That means fewer operational headaches for you.

4. Training & Onboarding

Hiring a new employee means training them from scratch, building systems, and spending time getting them up to speed.

Managed VA services come with a ready-trained assistant and a structured support system that shortens onboarding time dramatically.

Trying to manage everything yourself can slow progress and add unnecessary stress. Our blog post, “4 Time-Consuming Tasks You Don’t Have to Do – Get a VA! highlights how delegating the right tasks can help you stay focused and productive.

Want to see how a VA can work for you? Click here to claim your free consultation with a delegation specialist.

At Your Workforce Online, our Success Managers help with the transition so you’re never starting from zero.

5. Flexibility & Scalability

With an employee, scaling up or down isn’t easy. If workload drops, you still pay a salary.

With a VA, you can start part-time and scale up when needed. You’re not locked into long-term contracts or sunk costs.

Need a custom plan that fits your workload? Click here to claim your free consultation with a delegation specialist.

That kind of agility is critical for growing businesses who want to stay lean and responsive.

6. Accountability & Oversight

Managed VA services provide built-in accountability. At Your Workforce Online, for example, our Success Managers track VA performance, ensure continuity, and handle escalations.

Many businesses also use Monday.com, Trello, or ClickUp to streamline project management and keep teams aligned.

That’s something most in-house hires don’t come with—you’re the sole manager.

Delegation becomes easier when you’re not the only one holding things together.

The Comparison Between Hiring Freelancers and A Managed VA

When deciding between a freelance virtual assistant (VA) and a Managed VA, it’s important to consider reliability, quality, and overall efficiency.

A freelance VA may seem more affordable for basic administrative tasks, with rates as low as $800–$1200 per month. However, for creative or technical roles, costs can quickly rise to $1600–$8000 per month, often surpassing the predictable pricing of a Managed VA. Freelancers also require sourcing, vetting, and training, and since they juggle multiple clients, availability and consistency may vary. Quality control and oversight are entirely the business owner’s responsibility.

A Managed VA, on the other hand, comes pre-trained with a structured support system, ensuring accountability and high performance. With dedicated Success Managers overseeing their work and predictable pricing ($1280 per month for full-time support), businesses gain a more efficient and stress-free solution. The hands-on approach of a Managed VA makes it easier to scale while maintaining quality, eliminating the guesswork and risks of managing a freelancer.

So, What’s the Real ROI?

If you compare cost alone, managed VAs are clearly more affordable—but the real ROI goes beyond dollars.

You save time, reduce managerial load, and gain the ability to focus on strategy instead of supervision.

And with the right structure in place, your VA doesn’t just do tasks—they actively help your business grow.

Looking to Free Up Your Time?

Discover how delegating specific tasks can streamline your operations in our blog post “4 Time-Consuming Tasks You Don’t Have to Do – Get a VA!“.

Final Thoughts

Hiring locally isn’t wrong. In fact, for some roles, it’s still the best move.

But if your goal is to save money, reduce overwhelm, and stay flexible, a managed VA might be the smartest hire you’ll ever make.

Think about what your business really needs: time, clarity, support, and momentum.

You don’t need another full-time workload—you need the right help, at the right time, with the right structure. Click here to claim your free consultation with a delegation specialist.

Learn more from our recent posts!

Not sure what to delegate?

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If you're doing every single task, you're dropping the ball on the big ones.

Ultimate VA Task List

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