FTE vs. VA: The Ultimate Showdown for Business Support

Written by Dana B | Dec 13, 2025 7:56:27 PM

Every entrepreneur reaches a critical point: the workload is crushing, and you need help. But the choice between hiring a Full-Time Employee (FTE) and a Virtual Assistant (VA) is far more complex than a simple cost comparison.

It's a strategic decision that affects your budget, flexibility, company culture, and long-term growth trajectory.

So, how do you know which path is right for your business right now? Let's break down the major factors in the FTE vs. VA debate.

💰 The True Cost Comparison: Beyond the Salary

The most immediate difference is financial, but many business owners drastically underestimate the true cost of an FTE.

Cost Factor	Full-Time Employee (FTE)	Virtual Assistant (VA)
Base Pay / Rate	Fixed Annual Salary (e.g., $45,000 - $60,000+)	Hourly or Fixed Monthly Retainer (e.g., $15 - $40/hour)
Benefits & Taxes	High: Health insurance, retirement match, paid time off, mandatory payroll taxes (adds 25%-40% to salary).	None: VA is typically an independent contractor; you handle no taxes or benefits.
Overhead	High: Office space, desk, computer, software licenses, utilities.	None: VA uses their own equipment and workspace.
Recruitment & Training	High: Job boards, HR time, interviewing, intensive onboarding.	Low: Often minimal. VAs are pre-vetted and specialize in certain skills.
Scalability	Low: Hard and costly to scale up or down.	High: Easily scale hours up or down based on current needs.
Cost Verdict	High Commitment, High Cost	Low Commitment, Low Cost

💡 The Takeaway: A $50,000 salaried employee can easily have a true "fully loaded" annual cost of $75,000 to $85,000+. A VA offers support for a fraction of that cost, making them the ultimate tool for a lean, growing business.

⚖️ The Trade-Offs: Flexibility vs. Integration

The decision isn't just about money; it’s about what the role requires in terms of presence and commitment.

Why Choose a Virtual Assistant (VA)?

✅ Pros	❌ Cons
Flexibility & Speed	Limited Control Over Workflow
Immediate Expertise	Limited Integration into Culture
Cost-Effective	Potential Time Zone/Availability Issues
Scalability	Security requires clear protocols

A VA is ideal when:

You need help with task-based, repetitive work (e.g., email management, scheduling, data entry, social media posting).
Your workload fluctuates seasonally or project-to-project.
You need a highly specialized skill (like graphic design or a specific CRM expert) but only for a few hours a week.
You need to test the waters of delegation before making a massive financial commitment.

Why Choose a Full-Time Employee (FTE)?

✅ Pros	❌ Cons
Deep Cultural Integration	High Overhead and Fixed Costs
Constant Real-Time Availability	Time-Consuming Recruitment Process
Long-Term Loyalty & Retention	Less Flexibility with Workload
Physical Presence	Need to manage benefits, payroll, and HR compliance

An FTE is the better choice when:

The role requires physical presence (e.g., managing a storefront, inventory, or receiving physical mail/deliveries).
The work involves sensitive or confidential tasks that demand direct, on-site supervision (e.g., C-suite executive support, handling highly sensitive financial data).
The role is strategic, long-term, and requires team leadership or deep immersion in company-specific knowledge.
You have a consistent, full-time workload that will keep the employee busy 40 hours a week, every week.

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