VA vs Hiring Part-Time: What the Numbers Actually Look Like

When founders look at the cost of a virtual assistant retainer, the first thing many compare it to is a salary. It is a reasonable instinct. But a salary is only part of the cost of a part-time hire. Once you put the full picture together, the comparison looks very different.

The full cost of a part-time UK employee

Take a part-time admin or operations hire on a pro-rata salary of £28,000. That is £14,000 for a 20-hour week. Before they start a single day of work, here is what that actually costs.

Employer National Insurance at 15% on earnings above the secondary threshold adds around £1,200 per year on a £14,000 salary.

Minimum pension contribution — employers must contribute at least 3% of qualifying earnings. That is approximately £420 per year.

Recruitment fee — if you go through an agency, expect to pay between £1,500 and £3,000 as a one-off placement fee.

Equipment and setup — laptop, software licences, desk setup. Typically £800 to £1,500 for a new hire.

Notice period — if it is not working out, you are typically looking at one to three months notice. That is months of salary, NI and pension for work that may not be meeting your needs.

Add that up and the first year cost of a part-time hire regularly exceeds £18,000.

What an IdealPa retainer actually costs

The 30 Hour retainer at IdealPa is £1,100 per month. Over twelve months that is £13,200. No employer National Insurance. No pension contribution. No recruitment fee. No equipment cost. No sick pay liability. Holiday cover is included as standard. And the notice period to cancel or change is 30 days.

The comparison is not £14,000 salary versus £13,200 retainer. It is £18,000 plus versus £13,200 with significantly more flexibility and significantly less risk.

The flexibility argument

Beyond the cost, there is the question of flexibility. An employee is a fixed cost whether the business is busy or quiet. A retainer flexes. You can move between packages with 30 days notice. You can add additional hours at £40 per hour when you need more.

For most founders at the stage where they are considering their first hire, that flexibility is worth a great deal. Committing to an employment relationship before you are certain of the volume of work is a significant risk. A retainer removes that risk entirely.

When hiring in-house makes more sense

A virtual assistant is not right for every situation. If you need someone physically present, managing a team in person or doing work that requires a specific professional qualification, hiring makes sense. But for the recurring administrative and operational work that sits on most founders' plates, a retainer delivers more value at a lower cost with less commitment.