Who Do I Hire? New Employee, Freelancer or Virtual Assistant? – PROS & CONS
Understand what types of personnel will best fit your needs. Read this guide to find answers these questions:
- What is the difference between a freelancer, an employee, and a virtual assistant?
- What are the pros and cons of a freelancer?
- What are the pros and cons of hiring a new employee?
- What are the pros and cons of hiring a virtual assistant?
- Are freelancers or new employees more effective?
First let’s define the differences between the 3 types of personnel that we’ll be comparing.
What is a freelancer?
A freelancer is a person who works independently to fill a needed capacity for a business. Freelancers are not considered an employee, and they work for themselves. They are contracted by businesses to perform a specific job, and they set their own schedules.
Freelancers can be found within almost all industries but are most commonly employed in writing, technology, marketing, producing art & media, art, education, design, and more.
Who is considered an employee?
An employee is someone who receives compensation as a result of employment, oftentimes working full-time for a business. With employees, businesses are usually required to file proper paperwork, maintain tax compliance, and observe medical and vacation benefits.
What is a virtual assistant?
Virtual assistants (VAs) are outsourced and usually full-time hires who provide assistance in sales development, calling, marketing, administrative, and customer service functions to their clients from a remote, home office and typically from a different country.
[Considering a Virtual Assistant?]
Who should I hire? New Employee, Freelancer or Virtual Assistant?
Hiring A New Employee
Hiring a new employee, or rather an entry-level or mid-level individual to your company will ensure that you have someone who is willing to learn and grow with the company. However there are several factors to consider.
Employees are paid a daily wage and you can ask them to do any work that is required, as long as it falls within their job description. This means they are more likely to do the required work but will cost more than freelancers. They’ll probably want benefits and a raise. Be prepared to fill out & file all the appropriate paperwork. You will also need to provide all the equipment. They will probably need a computer and a desk. If they work from home, you’ll have to pay for their internet connection.
It is known that hired employees will eventually leave at some point. This in turn has a negative impact on productivity, as existing team members get used to working with one another and it becomes a more difficult transition for someone new to come into the team.
Hiring a new employee and bringing them into your team. This is often beneficial, as you have someone who is loyal to your organization and will be willing to work even harder knowing that they are representing themselves in work ethic.
New employees are good because they tend to have more energy. They can be a fresh start after all the previous workers who didn’t work out. However, new employees cost a lot of money and time to hire.
To recap…
PROS of Hiring a New Employee
- Consistent work & talent
- Can grow and adapt with the company
- Loyal to the organization; addressable & accountable work ethic
- Can do any work that falls within their job description
CONS of Hiring a New Employee
- Business provides work equipment
- Tedious recruitment process, paperwork, and administrative bookkeeping
- Costs from taxes and fringe benefits, such as sick & vacation PTO, and medical benefits
If a new employee doesn’t sound like a right fit, continue reading to see if a freelancer or a virtual assistant is what you need.
Hiring A Freelancer
Freelancers can be hired by the hour, or one lump sum as agreed, for a project; and will work on specific tasks you provide. This means that, for a small job, they can potentially be cheaper than employees who generally need to be paid a daily wage. Hiring a freelancer typically means less paperwork and they usually provide their own equipment.
If you hire a freelancer, they won’t get any benefits or raises, so in many instances, their negotiated costs could result in paying them more than a new employee. This means that at times, for a bigger project, your company may end up having higher costs than it would have with new employees.
However, freelancers are not always willing to do work that might be required that is not detailed in their initial agreement. For example, if you need a programmer to write software for your business but the only programming skills listed on their resume is ‘can code a calculator’ then you will probably be wasting your time asking them to write an entire new suite of business management software. You have to make sure the freelancer is skilled enough for your job and that they have good references.
Freelancers are good because they can help you in a moment’s notice. They’re also less administrative upkeep than new employees, but may have less motivation to understand your full vision and scope of work. It may take several tries to find the right freelancer to work hard and do the job right.
To recap…
PROS of Hiring a Freelancer
- Can help you in a moment’s notice
- Less administrative upkeep
- Easy to replace; good for short-term jobs
- Can work for an agreed lump sum
- Typically provides their own equipment
- Can be more affordable than an employee, depending on project
CONS of Hiring a Freelancer
- Not always willing to go beyond agreed scope of work
- Less motivated to understand your full vision or scope of needs
- May take several tries to find the right freelancer for the project
- Can be more costly than an employee, depending on project
If a freelancer doesn’t sound like a right fit, continue reading to see if a virtual assistant is what you need.
[Considering a Virtual Assistant?]
So, Are Freelancers or New Employees More Effective?
To answer this question: If you need, for example, a new program written from scratch so that the software can be sold as an app or on a platform (with little to no upkeep required), then it is recommended to hire freelancers. You will save money and probably get it done quicker than if you wait for employees.
On the other hand, if you want someone to write software for your business (that requires regular maintenance and upgrades) and integrate it in a database so that the software will be used by multiple employees, then it is recommended to hire a new employee for the role. It might cost more, but it will probably save you time and is more efficient.
ULTIMATELY, you can find common ground and hire a virtual assistant if you want the good qualities of both a freelancer and an employee.
Hiring A Virtual Assistant
Virtual Assistants offer the flexibility that businesses need when finding freelancers, but also ensures accountability, professionalism & loyalty as any prized in-house employee. Beyond that, virtual assistant offer more affordability than any other type of personnel.
A talented, experienced, college-educated virtual assistant can handle the essential parts of your operations, so you & your team can focus more on making more deals and growing the business! (Even while cutting your costs — saving you up to 70% on traditional employee costs)
Here are ESSENTIAL tasks a virtual assistant can do to help grow your business:
Marketing
- Content Writing
- Social Media Management
- Build campaigns
- Email Marketing
- Sales Funnels
- Graphic, podcast, video production
Lead Generation, Appointment Setting & PR
- Appointment coordination, confirmation & follow-up
- Nurture + pre-quality leads
- Manage media appearances
- Build sales funnels & produce scripts
Executive/Personal Assistance + Systems
- Administrator website, CRM, IT systems
- Phone receptionist + address customer service tickets
- Maintain cloud files + organization
- Manage product & service listings, online forms, blog, editorial calendar
To recap…
PROS of Hiring a Virtual Assistant
- Consistent work & talent
- Can grow and adapt with the company
- Loyal to the organization; addressable & accountable work ethic
- Can do any work that falls within their job description
- Can help you in a moment’s notice
- Less administrative upkeep
- Great for handling daily operational needs
- Provides their own equipment
- More affordable than an employee (up to 70% cheaper)
- More dependable than a freelancer (VAs report to you, full-time)
CONS of Hiring a Virtual Assistant
- Business provides work equipment
(solved by partnering with a reputable VA provider) - Tedious recruitment process, paperwork, and administrative bookkeeping
(solved by partnering with a reputable VA provider) - Costs from taxes and fringe benefits, such as sick & vacation PTO, and medical benefits
(solved by partnering with a reputable VA provider) - Difficult to find the right talent
(solved by partnering with a reputable VA provider)
[Considering a Virtual Assistant?]
Which choice is best for me?
The first thing we should consider is the nature of employment. What motivates people to work? Are they working for their own well-being and happiness or are they simply complying with orders from a superior?
We have just the right suggestion. Hire a vetted & experienced virtual assistant who is already experienced in what you need to accomplish or has the potential to do it with the right guidance. That way you can avoid unnecessary training costs, less risk in lost costs from failed searches, and save significant overhead costs!
ENVISIONING OF A NEW REALITY FOR YOUR BUSINESS
Simply put, MyOutDesk equips entrepreneurs & business owners with tools, strategies, and virtual employees – and when combined, businesses have a competitive edge and find growth while efficient systems and processes are put in place.
MyOutDesk proudly provides additional free business growth guides, books, and strategy calls.
See what we are about, and schedule a free consultation with us. We’ll take the time to learn more about your business and offer solutions to foster top talent and lower operational costs for your company.
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MyOutDesk can save you up to 70% on employment cost
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Did You Know? MyOutDesk’s origin story is set during the last global financial crisis of 2008. Yes, that’s right — our business started by scaling businesses with virtual assistants during a recession! Pioneers of virtual assistant services, our first client in 2008 went from five to seventeen VAs with a completely revamped organizational model in short order, and he told MyOutDesk, “Our virtual professionals have shaved $250,000 off our monthly overhead.”
