Cost Analysis: In-House Employee vs. Virtual Assistant - A Smarter Way to Scale with Compound Assistants

Every growing business eventually reaches the same breaking point: the work keeps piling up, but your time doesn’t. Emails go unanswered, follow-ups slip through the cracks, calls stack up, and suddenly the most important parts of the business—sales, strategy, growth—get pushed aside by day-to-day operations.

That’s when business owners face a critical decision: Do I hire an in-house employee, or do I bring on a virtual assistant?

At first glance, a full-time hire can feel like the “serious” move. Someone in-house, fully dedicated, embedded in your company culture. But what many owners underestimate is the true cost of that decision—financially and operationally.

Virtual assistants, on the other hand, offer a leaner, more flexible alternative. When done right, they deliver the same day-to-day support without the long-term overhead, risk, or commitment.

Let’s break down the real numbers—and why more businesses are choosing Compound Assistants as their first (and smartest) hire.

The Real Cost of Hiring an In-House Employee

Salary is only the starting point. The actual cost of an employee is far higher than what shows up on the offer letter.

1. Base Salary

A mid-level administrative or operations employee in the U.S. typically earns between $45,000 and $55,000 per year. Entry-level roles may start closer to $35,000, while experienced coordinators often exceed $60,000 annually.

That’s just cash compensation.

2. Benefits & Perks

To attract and retain talent, most employers must offer benefits—health insurance, dental, vision, retirement contributions, paid time off, and other perks. These typically add 25%–40% on top of base salary.

A $50,000 employee can easily cost an additional $15,000–$20,000 in benefits alone.

3. Payroll Taxes & Compliance

Employers are responsible for payroll taxes, unemployment insurance, and workers’ compensation. These costs are unavoidable and usually add 7%–10% of salary.

Beyond money, there’s administrative time spent staying compliant with labor laws, filings, and documentation—work that often falls back on founders or senior leadership.

4. Equipment & Office Overhead

Even remote employees require setup: laptops, software licenses, security tools, internet stipends, and phone systems. That alone can run $3,000–$5,000 per year.

If office space is involved, add $6,000–$12,000 per desk annually, depending on location.

5. Training & Onboarding

According to industry estimates, onboarding a new employee costs around $4,700 on average. That doesn’t include lost productivity during the ramp-up period or the manager’s time spent training and reviewing work.

6. Turnover Risk

When an employee leaves, the cycle starts over. Recruiting fees often range from 20%–30% of first-year salary, meaning a $50,000 hire can cost another $10,000–$15,000 just to replace.

Turnover is common—even among strong performers—making this an ongoing risk, not a one-time cost.

Example: One Mid-Level Admin Hire

• Base salary: $50,000

• Benefits: $17,000

• Payroll taxes & insurance: $5,000

• Equipment & tools: $4,000

• Training & onboarding: $4,000

Total annual cost: ~$80,000–$90,000+

And that’s before factoring in office rent, management time, or turnover.

The Cost of a Virtual Assistant with Compound Assistants

Now let’s compare that to hiring a virtual assistant through Compound Assistants.

Simple, Transparent Pricing

At Compound Assistants, our structure is straightforward:

• $9/hour

• Full-time coverage (~160 hours/month)

• Month-to-month — no long-term contracts

That comes out to roughly $1,499 per month for a full-time virtual assistant.

No benefits. No payroll taxes. No equipment costs. No HR headaches.

You Only Pay for Productive Work

With a virtual assistant, your budget goes directly toward output. There’s no paying for downtime, slow periods, or underutilized hours. Need more support this month? Scale up. Need less next month? Scale down—without layoffs or disruption.

Lower Training Burden

Our virtual assistants are college-educated, fluent in English, and already experienced in roles like:

• Inbound and outbound calling

• Lead follow-up

• CRM and EHR organization

• Scheduling and calendar management

• Administrative and backend support

You’re not starting from scratch—you’re plugging support into your existing workflow.

Reduced Management & Hiring Risk

Compound Assistants handles sourcing, vetting, onboarding, and replacement if needed. If something isn’t the right fit, we adjust—without forcing you back into a costly hiring cycle.

Example: Full-Time Virtual Assistant

• Monthly cost: ~$1,499

• Annual cost: ~$18,000

That’s less than one-quarter the cost of a traditional employee.

In-House Employee vs. Virtual Assistant: Side-by-Side

Cost Factor	In-House Employee	Virtual Assistant (Compound Assistants)
Base pay	$45k–$55k/year	$9/hour
Benefits	25%–40% extra	None
Payroll taxes	7%–10%	None
Equipment & office	$3k–$5k/year	None
Onboarding	$4k+ upfront	Minimal
Turnover risk	High	Low
Flexibility	Fixed	Fully scalable
Commitment	Long-term	Month-to-month

What This Looks Like in the Real World

Picture a business generating $30,000 per month. Hiring an $80,000 employee consumes more than 25% of annual revenue—a massive commitment for a growing operation.

A full-time virtual assistant at $1,499 per month? That’s about 7% of revenue, freeing up time without putting the business under financial strain.

Or consider a professional services firm whose workload fluctuates seasonally. With an employee, payroll stays fixed even when volume slows. With a virtual assistant, support adjusts to demand—no layoffs, no sunk costs.

Benefits That Go Beyond Cost

While savings matter, most business owners are surprised by the operational improvements virtual assistants bring:

• Flexibility: Scale hours up or down as needed

• Speed: Get support in days, not months

• Lower risk: Easy transitions if needs change

• Global talent: Access skilled professionals beyond your local market

• Focus: Reclaim time for sales, strategy, and growth

Which Option Makes Sense for You?

There are roles that require in-house expertise—accounting, engineering, or highly specialized leadership positions.

But for operations, admin work, calling, follow-ups, scheduling, CRM hygiene, and day-to-day support, a virtual assistant is often the smartest first hire.

Lower cost. Lower risk. Faster impact.

Scale Smarter with Compound Assistants

The numbers are clear. Hiring an employee locks you into salaries, benefits, and overhead that can easily double the cost on paper. A virtual assistant gives you leverage—without the long-term commitment.

At Compound Assistants, we make that transition seamless. Our virtual assistants integrate directly into your workflow, learn your systems quickly, and take ownership of the tasks that drain your time.

Whether you need part-time support or full-time coverage, you can scale at your pace—without unnecessary risk.

One closed deal can often pay for your virtual assistant for the entire year.

If you’re deciding between hiring in-house or outsourcing support, start with the smarter option.

👉 Hire a virtual assistant with Compound Assistants today.