Every growing business reaches the same point: you need more capacity. The question is whether to hire a full-time employee or outsource the work to a skilled remote professional.
This guide compares the two with real numbers: what a full-time US employee costs an employer according to the latest federal data, role-by-role wages next to outsourced rates, the costs most budgets miss, and the cases where hiring full-time is the better call.
Quick Answer
For remote-capable roles, outsourcing usually costs much less than hiring a full-time US employee. US private employers paid an average of $46.89 per hour worked in total compensation in June 2026, and $36.73 for office and administrative support roles, with benefits about 30% of the cost (BLS). A dedicated Filipino VA through VA MASTERS costs from $6.50/hr ($6.50–$10/hr for admin, about $1,040–$1,600 a month full-time), up to 80% less than hiring locally, with first candidates in about 2 business days. Hire full-time when the role needs someone on-site, owns core strategy or carries regulated responsibilities.
Outsourcing vs Hiring Full-Time at a Glance
Hiring full-time gives you a fixed cost and full control. Outsourcing trades some of that control for a lower, more flexible cost. There are two very different ways to outsource, and they compare differently with a full-time hire:
| Factor | Hiring a full-time employee | Outsourcing a project | Dedicated outsourced staff (e.g. a VA) |
|---|---|---|---|
| How you pay | Salary plus benefits, payroll taxes and overhead | A price per project or per deliverable | An hourly rate for hours worked, invoiced monthly |
| Fixed or flexible | Fixed: paid the same in quiet weeks | Per project | Part-time or full-time; hours can change with notice |
| Who directs the work | You | The vendor manages its own people | You, in your own tools |
| Knowledge stays with you | Yes, while the person stays | Mostly leaves with the vendor | Yes: one person learns your business |
| Time to start | Your own hiring cycle | Once scope and price are agreed | First candidates in about 2 business days (VA MASTERS) |
| In-person work | ✓ Possible | Rarely | ✗ Remote only |
| Best for | Core strategy, leadership, on-site roles | One-off, well-scoped work | Ongoing, remote-capable work: admin, support, bookkeeping, marketing |
The rest of this guide focuses on the comparison most business owners are making: a full-time employee against a dedicated outsourced professional for ongoing work.
What a Full-Time US Employee Really Costs (BLS, June 2026)
A full-time employee costs far more than the salary. The U.S. Bureau of Labor Statistics measures this every quarter in its Employer Costs for Employee Compensation (ECEC) release. The latest figures, for June 2026, were published on September 9, 2026:
| US private-industry workers (BLS, June 2026) | Total cost per hour worked | Wages and salaries | Benefits | Benefits share |
|---|---|---|---|---|
| All private-industry workers | $46.89 | $32.82 | $14.07 | 30.0% |
| Full-time private-industry workers | $54.00 | $36.97 | $17.03 | 31.5% |
| Office and administrative support occupations | $36.73 | $25.22 | $11.51 | 31.3% |
| Establishments with 1–49 workers | $37.64 | $27.88 | $9.76 | 25.9% |
Source: BLS, Employer Costs for Employee Compensation, June 2026 (tables 1, 4, 5 and 6). Costs are per hour actually worked, so paid leave is spread across the hours people work. The next release, for September 2026, is scheduled for December 16, 2026.
Three things stand out:
- Benefits add about 30% on top of pay for full-time workers. BLS counts paid leave as a benefit, so a salary covers $36.97 in wages plus $4.40 in paid leave; the other $12.63 in benefits comes on top ($54.00 in total per hour worked).
- Paid leave and legally required benefits alone cost $8.16 per hour worked for full-time workers: $4.40 for paid leave and $3.76 for legally required benefits such as Social Security, Medicare, unemployment insurance and workers’ compensation.
- Small establishments pay less per hour, but not little. Establishments with 1–49 workers paid $37.64 per hour worked in total compensation, $9.76 of it in benefits.
What That Means per Month
At 160 hours worked a month, the BLS averages translate to about $5,877 a month for an office and administrative support worker ($36.73 × 160) and $8,640 a month for the average full-time private-industry worker ($54.00 × 160). A full-time administrative VA through VA MASTERS works the same 160 hours for $1,040–$1,600 a month ($6.50–$10/hr).
Common Mistake
Comparing an outsourced hourly rate with a salary divided by 2,080 hours. The fair comparison is total cost against total cost: wages plus benefits plus the overhead below, against the outsourced rate for the hours actually worked.
Role-by-Role Cost Comparison: Local Hire vs Outsourcing
Here are the roles small businesses most often weigh up, with the US median wage for each occupation (BLS, May 2025) next to VA MASTERS rates by category. The US column is wages only; employer benefits other than paid leave add about 31% on top of salary for office and administrative support roles (BLS, June 2026).
| Role | US median wage (BLS, May 2025) | US monthly wage, before benefits | VA MASTERS rate | VA MASTERS full-time (160 h/month) |
|---|---|---|---|---|
| Administrative assistant | $47,540/yr | $3,962 | $6.50–$10/hr | $1,040–$1,600 |
| Executive assistant | $76,590/yr | $6,383 | $6.50–$10/hr | $1,040–$1,600 |
| Customer service representative | $21.53/hr | $3,732 | $6.50–$10/hr | $1,040–$1,600 |
| Bookkeeping clerk | $50,670/yr | $4,223 | $7.50–$14/hr | $1,200–$2,240 |
| Graphic designer | $62,960/yr | $5,247 | $8–$14/hr | $1,280–$2,240 |
| Marketing (BLS: market research analysts and marketing specialists) | $78,760/yr | $6,563 | $8.50–$15/hr | $1,360–$2,400 |
| IT support (BLS: computer user support specialists) | $61,860/yr | $5,155 | $8.50–$16/hr | $1,360–$2,560 |
US monthly wage = annual median ÷ 12 (customer service: $21.53/hr × 2,080 h ÷ 12). Source: BLS Occupational Outlook Handbook, median pay May 2025. BLS occupations are the closest federal category, not identical roles: an executive secretary or a marketing specialist in the US may be more senior than the VA you need, so compare against the level you would actually hire. VA MASTERS rates are per hour worked; most roles are $6.50–$15/hr, specialist roles such as data analysts up to $17/hr. See our pricing page for every category.
Worked Example: One Full-Time Administrative Role for a Year
- US employee: median wage $47,540 (BLS, May 2025). A salary already includes paid leave, so add the other employer benefits at the June 2026 rate for office and administrative support roles ($8.74 for every $27.99 of pay including paid leave) and the total is about $62,400 a year, before recruiting, equipment, software and office space.
- Dedicated VA through VA MASTERS: 160 hours a month × 12 months at $6.50–$10/hr = $12,480–$19,200 a year.
Your own numbers depend on the role, the wage you’d pay and the hours you need, which is why we say up to 80% savings rather than one fixed figure. Model your role with our cost savings calculator.
Two Real Hires: Local Cost vs Outsourced Cost
A VA MASTERS case study on recruiting a GoHighLevel specialist from the Philippines for a client who needed someone to run live funnels, integrations and automations: the job posting, CV screening, custom skills test, interviews and support after placement, and how the client saved over $40,000 compared with hiring a US specialist.
A VA MASTERS case study: after six months of failed hires, a marketing agency needed one person for operations, ad copy, campaigns and client presentations. The video shows how the candidate was found from over 100 applicants and reports 70% cost savings compared to local hiring.
Hidden Costs of Hiring Full-Time
Salary and benefits are the visible part. These costs rarely make it into a hiring budget:
Recruiting Time and Fees
Job ads, recruiter fees, screening and interviews, plus the weeks the work sits undone or falls back on you. Small businesses feel this most: in NFIB’s July 2026 survey, 36% of small business owners reported job openings they could not fill. Over the same period, US roles opened with VA MASTERS between February and August 2026 were filled in a median of 12 days (220 US roles, VA MASTERS US hiring data; VA MASTERS makes no causal claim linking the two).
Paid for Quiet Weeks
A full-time employee is a fixed cost whether the work fills 40 hours or not. Outsourced staff can start part-time and add hours when the workload grows.
Equipment, Software and Space
A laptop, software licenses, phone and, for an office role, desk space. A remote VA works from their own setup; you only grant access to your tools.
Onboarding and Management Time
This one applies to both options. Any new person, local or outsourced, needs documented processes and your time in the first weeks. Outsourcing does not remove it; plan for it.
A Hire That Doesn’t Work Out
If a local hire isn’t the right fit, you restart the search and pay for the gap. With VA MASTERS, if you’re not satisfied with your VA, you get a replacement, free of charge.
Employer Obligations
As an employer, you are responsible for payroll taxes, unemployment insurance, workers’ compensation and the rules around benefits and termination, which vary by state. Talk to your accountant or counsel about what applies to your business.
Hiring Lawrence as a QuickBooks Expert and Lery as a Real Estate Administrative VA has completely transformed how I run my real estate business. … This powerful combination allows me to focus more on investment strategy and growth. … The cost savings compared to local hires are substantial, and the efficiency they bring is unmatched. …
Beyond Cost: Control, Speed and Risk
Cost is the starting point, not the whole decision. Here is an honest comparison of the rest:
| Factor | Local full-time hire | Dedicated VA via VA MASTERS |
|---|---|---|
| Cost basis | Wage plus benefits (about 31% of total cost for full-time private workers, BLS June 2026) plus overhead | From $6.50/hr for hours worked |
| Time to first candidates | Your own hiring cycle | ✓ About 2 business days |
| Who runs the search | You or a recruiter you pay | ✓ 6-stage process run for you |
| Skills testing | Only if you build it | ✓ Custom skills test on your real tasks |
| If it isn’t the right fit | Restart the hiring cycle | ✓ Free replacement if you’re not satisfied |
| Scale up or down | Slow: hiring or letting someone go | ✓ Part-time or full-time; add hours or VAs as you grow |
| Daily oversight | ✓ In person or local remote | Remote: written briefs and regular check-ins |
| Team integration | ✓ Easier in person | Needs deliberate onboarding |
| Local market knowledge | ✓ Built in | Needs documentation of local specifics |
| Physical, on-site work | ✓ Yes | ✗ No |
Outsourcing a Project vs Hiring Full-Time Staff
Outsourcing a project and hiring full-time staff solve different problems. A project buys an outcome: a website, a migration, an audit. A full-time employee buys ongoing capacity and know-how that stays in your business.
- Choose a project when the work has a clear start, end and specification, and you don’t need the knowledge afterwards.
- Choose a full-time hire when the work is core to your business, needs constant in-person collaboration, or grows into leadership.
- Choose dedicated outsourced staff when the work is ongoing and remote-capable but doesn’t justify a full-time local salary: one person works only for you, learns your processes and takes your direction every day.
For the full list of outsourcing models (project-based, fixed-price, time and materials, managed service and dedicated staff) with the pros and cons of each, see our guide to outsourcing pros and cons.
Outsourcing IT vs Hiring an Internal Team
The same logic applies to IT. The US median wage for computer user support specialists was $61,860 a year in May 2025 (BLS), before benefits. A dedicated IT support VA through VA MASTERS costs $8.50–$16/hr ($1,360–$2,560 a month full-time). Tier-1 support, ticket handling, monitoring, user setup and documentation outsource well. Security leadership, architecture decisions and ownership of your systems should stay with someone accountable inside the company. For a larger company, compare the per-user price of a managed IT provider with the full cost of an internal team, including benefits and management time.
Outsourcing vs In-House Work: What to Keep
In-house work is done by your own employees; outsourced work is done by people engaged through an outside provider. The best split depends on the task, not the department:
| Keep in-house | Good to outsource |
|---|---|
| Core strategy, pricing and leadership decisions | Admin, scheduling, inbox and calendar management |
| Relationships with your biggest customers | Customer support by email and chat, with escalation rules |
| Work that needs physical presence | Bookkeeping, invoicing and reporting (approvals stay with you) |
| Final hiring and firing decisions | Recruitment coordination: job posts, screening, interview scheduling |
| Anything you can’t yet describe clearly | Marketing execution, content, design and social media |
Want the survey data behind the in-house vs outsourcing decision? See our outsourcing vs in-house hiring data for 2026.
Outsourcing vs Automation
Automation and outsourcing are not either/or. Automate the rule-based steps (moving data between tools, reminders, simple routing) and give a person the steps that need judgment. Many employers ask for both: 23.9% of VA roles opened with VA MASTERS between February and August 2026 named AI in their requirements, and Zapier and n8n together appeared in more roles than ChatGPT alone (322 roles, AI skills in VA job requirements). An automation VA can build and run those workflows for you.
When Hiring Full-Time Is the Right Decision
Outsourcing isn’t always the answer. A local full-time hire is the better call when:
- The role needs physical presence: on-site operations, in-person client meetings, warehouse or field work.
- It is a core leadership or strategy role that needs deep organizational alignment from day one.
- The role carries regulated responsibilities that must sit inside your company.
- You need someone to build institutional knowledge over years and grow into a leadership position.
- The work needs constant real-time collaboration in your local business hours with no flexibility.
Even businesses that hire locally for senior and customer-facing roles often outsource the supporting work around them: admin, bookkeeping, data entry, social media and research. The two approaches aren’t mutually exclusive.
When Outsourcing Is the Right Decision
Outsourcing to a dedicated professional is usually the better call when:
- The role is remote-capable: the work happens on a screen.
- You need skilled help, but the full cost of a local hire is too high for your current revenue.
- You want one dedicated person focused on your business, not a shared agency team.
- The scope is still growing: starting part-time keeps your options open.
- You’ve been burned by a bad hire and want candidates tested on your real tasks, with a replacement if it doesn’t work out.
- You need capacity quickly and can’t wait for a long local hiring cycle.
The business world is moving away from rigid, full-time costs. Part-time virtual assistant setups give business owners the freedom to buy the exact help they need, test new work routines without big financial risks, and add more team hours as company revenue grows.— Alon Pearl, Founder & CEO, VA MASTERS
From Our Research
73% of US roles opened with VA MASTERS between February and August 2026 were part-time, 52% were opened at exactly 80 hours a month, and the median role was filled in 12 days (220 roles, 174 US companies).
Source: The US Hiring Channel No Employment Statistic Counts, VA MASTERS.
Data as of August 2026. See the VA MASTERS statistics report for the latest figures.
The Hybrid Model: What Most Small Businesses Do
The outsourcing vs hiring debate is often framed as binary. In practice, most growing businesses do both: they hire locally for roles that are strategic or need physical presence, and outsource supporting work to dedicated VAs.
That is especially true of the small businesses we work with: 87% of VA MASTERS clients have fewer than 50 employees and 57% have 10 or fewer (as of July 2026). For many of them, a VA is their first or second hire, not a replacement for someone.
For small businesses that cannot afford high local hiring costs, remote hiring isn’t about replacing current workers. It is often the key first step that helps a founder stop wasting time on basic tasks and start focusing on growing their business.— Alon Pearl, Founder & CEO, VA MASTERS, in Manila Standard
The hybrid model also scales one role at a time: about 1 in 5 VA MASTERS clients expand beyond a single VA (as of July 2026). One common path is a part-time admin VA first, then a second VA for bookkeeping, support or marketing once the first role is running.
Not Sure Which Roles to Outsource First?
Tell us where your time goes. We’ll map which roles are worth outsourcing, which to keep in-house, and what each would cost.
Get in Touch →How VA MASTERS Recruits Your VA
A remote hire only saves money if it works. Our 6-stage process is built so you see real work before you hire. It is selective: about 1 in 508 applicants is placed (166,350 applications, January 2025 to July 2026).
Detailed Job Posting
We map your tasks, tools, hours and standards, then write a job description for that exact role.
Candidate Collection
A custom search for your role, powered by our database of 400,000+ pre-assessed Filipino applicants.
Initial Screening
Internet reliability, English and relevant experience are checked, with AI-assisted screening and human recruiters.
Custom Skills Test
Candidates complete real tasks from your workflow, so you see actual work quality, not just a CV.
In-Depth Interview
Our recruiters assess communication, ownership and fit with how you work.
Client Interview
You meet the top 2–3 candidates and choose who joins your team.
What Our Clients Say
Real Messages from Real Clients
Hear From Our VAs: Happy VAs Deliver Better Results for Your Business
Frequently Asked Questions
Does outsourcing cost less than hiring a full-time employee?
For remote-capable roles, usually yes. US private employers paid an average of $46.89 per hour worked in total compensation in June 2026, and $36.73 for office and administrative support roles (BLS). A dedicated Filipino VA through VA MASTERS costs from $6.50/hr: $6.50–$10/hr for administrative and customer-support roles, about $1,040–$1,600 a month full-time. That is up to 80% less than hiring locally. Outsourcing doesn’t save money when the work needs someone on-site or when a vendor bills you for management layers you don’t need.
How much does a full-time US employee cost an employer?
More than the salary. In June 2026, total compensation for full-time private-industry workers averaged $54.00 per hour worked: $36.97 in wages and $17.03 in benefits (31.5%), according to the BLS Employer Costs for Employee Compensation release. Recruiting, onboarding time, equipment, software and office space come on top of that.
How does outsourcing projects compare to hiring full-time staff?
Outsourcing a project buys a defined result for an agreed price, and the vendor manages its own people; a full-time hire is a fixed cost who works only for you and keeps knowledge in-house. Projects suit one-off, well-scoped work. For ongoing work, dedicated outsourced staff, such as a dedicated VA, sit in between: one person works only for your business and takes your direction, without the fixed cost of a full-time hire.
What is the difference between outsourcing and in-house work?
In-house work is done by your own employees; outsourced work is done by people engaged through an outside provider. Keep in-house the work that needs physical presence, owns core strategy or depends on deep context; outsource defined, repeatable, remote-capable work with a clear quality bar.
What are the hidden costs of hiring a full-time employee?
Benefits (about 31% of total compensation for full-time private workers in June 2026, BLS), employer payroll taxes and other legally required benefits, paid leave, recruiting time and fees, onboarding time, equipment, software and office space, management time, and the cost of restarting the search if the hire doesn’t work out.
When should I hire full-time instead of outsourcing?
Hire full-time when the role needs someone on-site, is a core leadership or strategy role, carries regulated responsibilities that must sit inside your company, or needs deep institutional knowledge built over years.
Does it cost less to outsource IT or hire an internal team?
For tier-1 support, help desk tickets, monitoring and IT admin, outsourcing usually costs less: the US median wage for computer user support specialists was $61,860 a year in May 2025 (BLS), before benefits, while a dedicated IT support VA through VA MASTERS costs $8.50–$16/hr. Keep security leadership, architecture decisions and system ownership in-house.
Can I outsource part-time instead of hiring a full-time employee?
Yes. Most outsourced VA roles start part-time: 73% of US roles opened with VA MASTERS between February and August 2026 were part-time, and 52% were opened at exactly 80 hours a month (220 US roles). You can add hours as the work grows.
How quickly can I start, and what does it cost to start?
First candidates typically arrive in about 2 business days. You interview the top 2–3 candidates and choose who you want to work with. It costs nothing to start: there are no upfront fees and no setup fees.
What happens if an outsourced VA isn’t the right fit?
If you’re not satisfied with your VA, you get a replacement, free of charge. With a local hire, the same situation usually means restarting your own hiring cycle.
See What You’d Save by Outsourcing Your Next Hire
VA MASTERS recruits dedicated Filipino VAs from $6.50/hr, tested on your real tasks, with support after the hire.
- It costs nothing to start: no upfront or setup fees
- First candidates in about 2 business days
- Custom skills test built for your role
- Free replacement if you’re not satisfied
Anne is the Operations Manager at VA MASTERS, a recruitment agency specializing in Filipino virtual assistants for global businesses. She leads the end-to-end recruitment process — from custom job briefs and skills testing to candidate delivery and ongoing VA management — and has personally overseen the placement of 1,000+ virtual assistants across industries including e-commerce, real estate, healthcare, fintech, digital marketing, and legal services.
With deep expertise in Philippine work culture, remote team integration, and business process optimization, Anne helps clients achieve up to 80% cost savings compared to local hiring while maintaining top-tier quality and performance.
Email: [email protected]
Telephone: +13127660301
