When running a business, it’s crucial to carefully consider the costs of every decision you make. One of the most significant decisions you’ll face is whether to hire locally or to consider outsourcing.
This article looks at the costs of hiring an employee in the United States compared to hiring a virtual assistant from the Philippines. We will explore hidden costs associated with hiring employees in the U.S., the economic advantages of outsourcing to the Philippines, and conduct a general cost analysis comparing these two options.
The Hidden Costs of Hiring US Employees
When you hire an employee in the United States, the salary isn’t the only expense you need to consider.
Apart from the increased wage, employers are also responsible for various other costs such as health insurance, employment taxes (including Social Security and Medicare), retirement contributions, and possibly life and disability insurance. If you have physical office space, then office supplies, utilities, and rent form part of the expense too.
Then there’s turnover to consider. The US Bureau of Labor Statistics has reported that overall employee turnover rate in the US was 44.3% before the pandemic – a number that surely has grown since then. Replacing an employee can cost up to 2x their annual salary, factoring in recruitment, onboarding, and lost productivity during the transition.
The true cost of hiring an employee in the U.S. stretches far beyond their base salary. And this is where hiring a virtual assistant from the Philippines can offer an economical alternative.
The Economic Pros of Outsourcing to the Philippines
We live in a global marketplace, where companies aren’t limited by geographical boundaries. Particularly, outsourcing to the Philippines has become a popular choice for growing businesses.
First off, Filipino virtual assistants offer competitive rates. Considering the average national income in the Philippines, the wages of virtual assistants are relatively lower compared to US-based employees. This cost-effectiveness allows businesses to save substantial amounts on their bottom line, without compromising on the quality of work.
Remember turnover? We all know the hiring process can often be long and expensive, particularly for specialized positions. Our virtual assistants are not only highly skilled in various fields including IT, content creation, business management, and customer service – these VAs are loyal team members.
Bottom line? Hiring a virtual assistant from the Philippines not only saves you money but also provides you with efficient, skilled, and flexible personnel to help your business grow. Compare this with the costs and complexities of hiring a US-based employee, and the economic advantages become quite clear.
Contact us today to see the benefits of hiring our Pros!
