One of the more fundamental Key Performance Indicators for an Admin Virtual Assistant is “# Completions Per Hour” … in other words, how many times will the VA be able to complete each Workflow in one hour.
Some Workflows only invovle a few quick Tasks, and might only take a matter of minutes. Other more complicated Workflows might require days of full-time work, interacting with multiple stakeholders & working within multiple systems.
Here are a few quick real-world # Completions Per Hour examples for context:
• Manual List Building: 20 – 40+ Records Per Hour.
• Creating CMA Reports: 1 – 3 Reports Per Hour.
• Updating Online Listings: 3 – 5+ Updates Per Hour.
• Sending Invoices, Reminders, and Receipts: 10 – 15 Records Per Hour.
• Daily CRM Updates & Data Sync: 5 – 6 User Accounts Per Hour.
Since one of the main benefits of outsourcing to Overseas Virtual Assistants is cost savings, it’s crucial to track exactly how much your VA’s output costs.
Once you know your # Completions Per Hour, you can easily calculate the $ Cost Per Completion by dividing the your VA’s hourly rate by the # Completions.
$7.50 Per Hour (the hourly rate)
/ 3 CMA Reports Per Hour (the # Completions Per Hour)
= $2.5 Per CMA Report (the $ Cost Per Completion)
And, while you can track this number based on aggregates & averages, you can also track and re-calculate it based on real-world numbers at certain intervals.
For example, let’s say you wanted to see a real-world $ Cost Per Completion with the greatest degree of accuracy, once per month.
We can expand the above calculation without generalizing, e.g.:
$7.50 Per Hour x 80 Work Hours = $600 Per Month
190 CMA Reports Completed Last Month
$600 / 190 CMA Reports = $3.16 Per CMA Report (the actual $ Cost Per Completion, based on a month-long period’s totals).
Once you know your actual $ Cost Per Completion numbers, it will be easy to see how much you’re saving (versus getting the same work done locally).
The only challenge with this math is determining your local hard cost, since it depends on who would be doing the work.
Example: You’re Doing the Work.
As a Real Estate Business Owner or Team Leader, your time is worth at least $50 Per Hour… and probably closer to $100 – $200 Per Hour!
Let’s split the difference and call your time worth a minimum of $75 Per Hour.
Then, let’s say you do the work 1.5x as fast as the VA (because, chances are, you’re going to be better at the work than even the best Overseas VA).
Therefore, your hard cost to do the work would be:
3 CMA Reports Per Hour x 1.5 = 4.5 CMA Reports Per Hour
$75 Per Hour / 4.5 CMA Reports Per Hour = $16.67 Per CMA Report
$16.67 Per Report (You) – $2.5 Per Report (VA) = $14.17 Saved Per Hour!
In other words, every Work Hour the VA spends on this task, even at their slower speed, you’re still saving at least $14+ Per Hour.
In the example above, where your VA is working 80 Work Hours Per Month to complete 190 CMA Reports, here is a look at those savings:
You = $16.67 Per Report x 190 Reports = $3,167 Hard Cost
VA = $3.16 Per CMA Report x 190 Reports = $600 Hard Cost
$2,567 Hard Cost Savings Per Month ($30,805 Per Year!!!)
That is just from outsourcing about 3 – 4 Work Hours Per Day to an Admin VA.
PLUS you’ll have freed up that hour of your own time, which in a way is more valuable, since it frees your time to work ON the business instead of IN the business (likely increasing what one hour of your own time is worth in the process!).
However, this is a 2nd degree effect, and NOT technically part of the $ Hard Cost Savings KPI amount, so would be in addition to the savings above.
While sometimes just knowing your total dollar amount savings ($ Hard Cost Savings) is enough…
… You can make even better informed strategic decisions by calculating your % Hard Cost Savings with your Overseas Admin Virtual Assistants.
From the example above:
Local Hard Cost = $3,167
Overseas Hard Cost = $600
Difference (Savings) = $3,167 – $600 = $2,567
$2,567 Savings / $3,167 Hard Cost = 81% Hard Cost Savings!
And as always, you are only calculating the actual Hard Cost Savings, not second degree effects like Opportunity Cost, or the value of your additional freed time.
By keeping track of your KPIs and adjusting your Virtual Assistants’ workload over time, you can boost both your efficiency, and your cost savings, on a continuously improving basis.