Are you unsure whether to hire a virtual assistant directly, work with a virtual assistant agency, or rely on U.S.-based staff?
Do you worry that choosing the cheapest option could actually cost you more in the long run?
At Lava Automation, we have guided hundreds of agencies through this decision. With billions in premium supported on our systems and thousands of hours saved for agencies each week, we know how staffing choices affect cost, compliance, and growth.
In this article, we will compare the true costs of each staffing model, including salary, benefits, hidden costs, turnover, training, and long-term ROI. By the end, you will know which option delivers the most value for your agency.
What are the different staffing models agencies can choose from?
Before comparing costs, it is important to define the three main staffing models. Each comes with very different responsibilities, risks, and long-term value.
Direct virtual assistant hire: When an agency recruits and manages a virtual assistant on its own, without going through a specialized provider.
Specialized insurance-trained virtual assistant: A virtual assistant sourced through a provider that focuses on the insurance industry, offering structured training, compliance safeguards, and ongoing support.
U.S. direct hire: A staff member hired directly in the United States, typically for in-office or remote licensed and administrative work.
What are the upfront costs of each staffing model?
At first glance, direct virtual assistant hires look like the most affordable option. Salaries are lower than those of U.S. staff, and agencies may assume this creates the best savings.
The reality is that salary alone does not tell the full story.
Direct virtual assistant hire: $800 to $1,200 per month, depending on country and skill level
Specialized insurance-trained virtual assistant: $2,500 to $3,500 per month with training, recruiting, and compliance often included
U.S. direct hire: $3,500 to $7,500 per month before taxes and benefits
How do salaries and benefits compare over time?
Salary is only the beginning of the cost equation. Benefits and payroll obligations create long-term expense differences between these staffing models.
U.S. direct hires carry the heaviest financial load because of taxes and benefits.
Direct virtual assistant hires: Require payroll compliance, security costs, raises, and sometimes international employment law navigation
Specialized insurance-trained virtual assistants: Flat monthly fee covers sourcing, training, equipment, security and support
U.S. direct hires: Health insurance, retirement contributions, and workers' compensation add thousands per year
What hidden costs should agencies expect with direct virtual assistant hires?
Recruiting and managing direct virtual assistant hires comes with a series of hidden expenses. These costs often go overlooked until they show up on the budget sheet.
The hidden costs of direct virtual assistant hiring can erase the savings you expect:
Recruiting and job postings
Interviewing and training
Equipment, IT setup, and licensing
Payroll and taxes
Ongoing training and management
Every time a direct virtual assistant hire turns over, the cycle begins again. Companies often spend one-half to two times that person’s salary to replace them, according to Gallup.
How do specialized insurance-trained virtual assistants help agencies avoid hidden expenses?
Direct hiring leaves agencies responsible for sourcing, training, and oversight.
Specialized providers take those responsibilities off your plate:
Flat, predictable costs replace unpredictable overhead.
Pre-screened and vetted candidates are delivered before placement
Training includes structured onboarding in insurance systems and compliance
Virtual assistants use provider-issued devices with security safeguards
Ongoing coaching, fast replacements, and continuing education protect your investment
What financial risks come with U.S. direct hires?
U.S. staff provide value for licensed tasks and client-facing responsibilities, but the overhead attached to these roles is significant.
For unlicensed administrative work, the fully loaded cost of U.S. direct hires is difficult to justify.
Payroll taxes add 10 to 15 percent
Health insurance and retirement contributions add thousands per year
Competitive job markets push wages higher each year
How does turnover affect the total cost of each option?
Turnover is one of the most expensive elements of staffing. Each time a hire leaves, productivity drops and costs rise.
Turnover is high for direct virtual assistant hires because agencies often lack the resources to train, support, and retain them long-term. This leads to wasted recruiting and training cycles that reset with each departure.
U.S. direct hire turnover also creates a major expense. When an employee leaves, agencies lose productivity during the vacancy, spend weeks or months recruiting, and then face another training period before the replacement is up to speed.
Specialized insurance-trained virtual assistants stay longer because they are supported, monitored, and coached. If replacement is needed, the provider typically delivers one quickly, reducing downtime.
When might a direct virtual assistant hire or a U.S. direct hire still be the right choice?
Some situations do call for direct hiring, whether virtual or U.S.-based.
Agencies with strong internal systems may be able to manage these models effectively.
Direct hiring can work if your agency already has the infrastructure to train and support staff.
Agencies with ample time, a robust training program, and leaders who can dedicate time to coaching may benefit from direct virtual assistant hires
U.S. direct hires are required for licensed tasks such as binding policies or explaining coverage
Agencies that do not mind taking on higher risk in exchange for lower upfront cost may find direct hiring appealing.
How should agencies evaluate long-term ROI?
Return on investment comes from stability, speed to productivity, and the ability to scale without constant rehiring.
Specialized insurance-trained virtual assistants reach productivity faster than direct virtual assistant hires and provide long-term retention.
Administrative tasks such as certificates, quoting, and data entry are ideal for virtual assistants
Licensed tasks, such as binding policies must remain with U.S. staff
Specialized insurance-trained virtual assistants reach productivity in 30 to 60 days compared with six months or more for direct virtual assistant hires
Which staffing model delivers the best value for agencies?
Staffing decisions go far beyond payroll. Direct virtual assistant hires may look affordable at first, but the hidden costs of turnover, security concerns, and equipment often erase those savings.
U.S. direct hires remain essential for licensed work, but their overhead and turnover risk make them unrealistic for most administrative tasks.
At Lava Automation, we have seen hundreds of agencies navigate this decision. With structured training, compliance safeguards, and predictable monthly costs, our specialized insurance-trained virtual assistants often deliver value faster, reduce compliance risk, and stay longer.
Agencies that choose this model free their licensed staff for revenue-driving work and scale with confidence.
Want to know what level of skill you can expect from an insurance-trained virtual assistant? Read: How Experienced Will My Virtual Assistant Be?
Frequently Asked Questions
Do virtual assistants cost less than U.S. direct hires?
Even with training and support included, a virtual assistant typically costs less than half of a U.S. employee.
Why do direct virtual assistant hires look cheap but end up costing more?
Agencies carry the full cost and time required for recruiting, training, equipment, and turnover, which quickly outweighs the low base salary.
How fast can an insurance-trained virtual assistant start producing results?
Most are ready to handle core tasks independently within 30 to 60 days.
Is there ever a reason to choose a U.S. direct hire over a virtual assistant?
Any task that legally requires licensure must be handled by a licensed employee.
Which option has the best long-term ROI?
For administrative work, insurance-trained virtual assistants usually provide the best balance of savings and retention.
