Getting smart with the way you set up the pay structure for your virtual assistant can go a long way to driving performance and productivity and can get your remote workforce into the right habits straight off the bat.
To explain a bit more, it might be worth trying, when you first hire a virtual assistant to introduce a probationary period. AÂ training period, during which time you will be investing your time and resources into training and developing their skill set so that they will be fully equipped in 3 months to handle all the tasks you need them to do. You can make it clear that, within that time, either party can walk away with no hard feelings, if you feel that they are not well suited to the role or they feel that the job is not really for them.
Perhaps they want $10 an hour for their virtual assistant services, for a role you feel is worth $8 or $9. What’s the result if you go back and forth with your virtual assistant debating the value of the position and trying to convince them to accept the lower rate? They may reluctantly accept your offer but do you think they will go the extra yard for you late one evening when you need that article completed and uploaded urgently?
You can turn this potentially difficult situation into a win-win by saying that you will meet their price if they successfully complete the training period; so you put them onto an $8 or $9 rate for the first three months with the guarantee that you will up the rate to $10 an hour (with back-pay) when they conclude the training and show that they can do the tasks to the required level.
This approach is the carrot on the end of the stick that can help instill a work ethic that drives the VA on to perform to their peak. Some staff will do this naturally, if you are lucky enough to find them; others like the incentive of the carrot. If you can instill this ethic in the first 3 months it will be easier to keep the momentum going when the carrot is taken away.
The carrot method described here is just one way to incentivise your virtual assistant. Here at Melbourne SEO Services, we find ways on how to get the most from our remote team while giving them a rate commensurate to their skills. Click here if you want to know how we do it.
As a business services provider or Virtual Assistant I would find this method of negotiation very demoralizing. I have no problem with a trial period for the benefit of both parties but I would not offer a reduced rate to prove my worth. I am confident in my skills and you do not have to dangle a carrot in front of me to motivate me. I love the work I do and that is motivation enough. If you do not trust your VA from day one then you have the wrong VA!
Hi Lisa, thanks for stopping by and I appreciate your comments… I’m not sure our article explains this in enough detail but it’s not so much a “trial rate” as it is a “training rate”.
The fact is, when we take someone on we invest a lot of time and effort training them up. Within the first 3 months they’ll watch hours and hours of video and pretty much go through many of our courses! The same courses we sell over thousands of dollars. They get paid to watch our best training 🙂
Many workplaces don’t pay for this training which we don’t think is fair (McDonalds is a great example, I think you have to go through their “McDonalds University” at your cost). With us, even if someone doesn’t stay on after the training, they’ve had some world class training and they were paid to learn it… sounds like a pretty good deal if you ask me (but I’m biased).
Hope that helps to explain a little further.
Your SEO Coach,
Dave
Ps. Just re-read this article again and I’m not 100% sure I like the angle in which is was written… I think it might have misinterpreted this strategy slightly.
Hi David
Virtual Assistants are usually independent contractors so I am surprised you’d find a professional VA who would negotiate their rate.
Whether your training videos are valuable or not doesn’t matter, as YOU NEED your assistant to know and understand your product to assist you.
I am glad that you can see that the angle of the article may not be ideal. For people in the VA industry, starting off your article by referring to us and donkeys in the same sentence may not be received well.
All the best
Rosie Shilo
Again this is an example of using a real world business setup for an online business. The takeaway here is setting up a probationary period. If your assistants are from the Philippines, this is perfectly acceptable because a probationary period is expected by Filipino workers in any field.
About reducing pay rates, a potential employer and an applicant simply need to agree early on what an acceptable rate is for both of them. If there is no common ground about rates, then both parties should just agree that they aren’t a perfect fit. To say it differently, an applicant isn’t compelled at all to accept an offer she isn’t happy with.
Hi Rosie,
Again, I agree with your comments and in hindsight I really didn’t like the way this article painted the picture. Please note I have tweaked the article a little to try and stick to the point we were looking to make.
The point being to think a little more creatively when structuring VAs compensation. It’s completely fair, in my opinion, to offer a training rate as the VA gets skilled up… you see this all the time in other industries (chiefs, electricians, etc.).
Thanks for the feedback guys! Updated and noted… we’ll pass this onto our writers.
Your SEO Coach,
Dave
Frankly I’m both surprised and dismayed that someone from Melbourne would write this. I guess you’re seeking to engage only VAs from lower paid countries and not from your own. And need I remind you that a VA is (or should be) already well trained in the services they provide – otherwise they should not be providing them. VAs are NOT employees, they are self-employed business service providers who should be setting their own rates and not having clients tell them what they should be paid. You wouldn’t be telling your electrician what they should be charging you, would you? Or any other service provider you seek support from.
By the way you won’t get any Australian based VA charging the rates you’ve quoted.
Thanks for responding David.
I really feel that if you need to dangle a carrot for a professional contractor, you’ve not found the right contractor, and perhaps that’s BECAUSE of the amount you are offering.
Best of luck
Rosie
Thanks for the feedback David When I worked for JP Morgan I had a training period and did many hours of training but did not work for a reduced rate. A true virtual assistant is a highly trained individual and should need minimal training unless they are using special software or processes. I can appreciate the value of receiving your training program but they should also be bringing their training and expertise to the relationship which should be valued by the client.
Wow! Great discuss thread. I love this.
Kathie: We actually engage assistants worldwide, from Australia to the USA, to Philippines, to Canada, to India… and that’s just to name a few. We hire assistants and set their rate based on the job and what’s more than fair compensation in their country.
You mentioned you wouldn’t tell your electrician what they should be charging you but I’d say “no but, I’d call around to get the best job done, at the best price… furthermore, I’m not hiring an electrician full time… one off tasks are a very different thing when compared to continued employment.”
Also, you bring up an interesting point… I don’t see VAs as being separate from my team. We’re looking for long term relationships not just one night stands.
Rosie: To be clear we don’t always hire based on skill level (because we know we can train someone up) instead we hire on values. Does a team member share similar values? Moreover we’re not looking to hire someone who’s just looking to make a quick buck or the most amount of money they can.
As for the second part of your comment… As mentioned, we pay a rate based the job and what’s more than fair in the country we’re hiring the service from. I don’t advocate paying $2 p/h where the average wage is $5 or similarly, we don’t pay $15 when the average wage is $25.
We treat all contractors the same way regardless of where they’re based… we negotiate rates based on a whole range of variables and we’re simply looking to pay what’s fair.
Lisa: I can see what you’re saying and agree. There are times when your assistant needs to come highly trained and in those times you need to pay a full rate (when you’re hiring experts). There are also other times when we hire based on values… not skills… in these times, it’s like we’re taking them on as an apprentice and I feel it’s more than fair to offer a training rate in their circumstances.
Just my 2 cents… a very interesting discussion if I missed anything I’m still open for debate.
You SEO Coach,
Dave
Hi Dave
I have been trying my very hardest NOT to comment on this blog post but I feel I do need to say something. I have been Virtual Assistant for over 11 years – I run my own business, I set my rates, I have very happy clients and I have been on a number of VA committees and forums, so I have extensive knowledge on the VA industry – just as a background.
First and foremost I am quite appalled at the way you treat these ‘so-called’ VAs. In my eyes, it is very condescending and insulting – I would never speak about or treat anyone like you have depicted in your video. We are dealing with people here …
Secondly I’m not sure that you are fully aware of what a VA is and I invite you to visit this link to get the true definition of what one is http://www.oivac.com/whatisva.htm It’s very frustrating when so-called experts come along and advise and coach people on how to run their business then bandy around terms that they have either not researched or have no idea what they are talking about. These ‘VAs’ (and I’m using the term very loosely), are not professional VAs, they are Virtual Employees if want a better term. Professional VAs do not negotiate on price, do not have trial periods and do not need carrots to entice them to work better. I find it hard to believer that there are any VAs in Australia that allow their clients to set their rates?
On a final note, just out of interest, I’m not sure why you are providing so much information on how to use a ‘VA’ when you appear to be SEO Service providers?
Regards…
David – you talk about wages and continued employment. Again, I emphasise that Virtual Assistants are NOT employees. What you are really talking about are virtual workers who are your employees – or at least that’s how you appear to see them.
Again, Virtual Assistants choose the rates they charge their clients – if you’re employing it’s a very different matter. But the term ‘Virtual Assistant’ should not be confused with virtual employees which is what you appear to be describing for the most part. Virtual Assistance is an industry in its own right and VAs are very much self-employed business owner/operators with multiple clients.
For the record, my longest running client has been with me for 12 years and I have other clients who have been with me for 5-10 years. I don’t work fulltime for any client (that then becomes a tax issue which would mean you (or the client) would become responsible for my super, tax, sickleave, etc.) but rather I do regular work for each of my clients, some on a daily or weekly basis, others on on monthly or ad-hoc basis.
Ok. Time for a audio reply. I often find it’s quicker to reply via voice rather than typing out a lengthy reply. I’ve posted it here for you: http://davidjenyns.posterous.com/working-with-virtual-team-members-is-this-pos
Thanks for all the feedback guys.
Your SEO Coach,
Dave
David, just to set the record straight. You are engaging ‘virtual team members’ or ‘virtual employees’ and NOT Virtual Assistants, terminology that is really important in this discussion. Let me also say that Virtual Assistants do not work as ONE-OFFs (which you keep saying) but for the long-term – just so you understand. It’s important if you’re going to write about something and publish, then please use the right terminology. You still have Virtual Assistant in the subject heading and VA throughout your post of this post – and that is still very misleading if, in fact, you are talking about virtual team members, i.e. employees.
I agree with having a trial period for remote team members that are engaged full time or part time. The screening and interview process can only help up until a certain point. It is only fair on both parties that either can walk away at any time.
As far as pay goes for me, any team member involved directly in the process if obtaining new business is entitled to bonuses above their normal award rate. I want them to share the spoils of the success of the business. That is my way of incentivising my team to go that extra yard. That way it is win-win
Kathie, we employ a combination of both virtual team members and virtual assistants. In both circumstances we trial them first to see how we work together – this is for the benefit of both of us. I really can’t see what point you are trying to make here?
Just because a virtual assistant is self employed doesn’t mean they’re not open for negotiation – all business is a negotiation.
And Nick, I couldn’t agree more… rewarding team members as the business grows is a great strategy.
Your SEO Coach,
Dave Jenyns
David, I don’t have a problem with trials. I have done the same with some of my clients. I do have a problem with you saying you decide how much they (VAs) should be paid and much of your post really discusses how you treat employees.
Hi Kathie, when you say I decide how much a VA should be paid… this is just part of the negotiation. If a VA says “I want $40p/h” and yet when we ran the ad looking for someone around the $30 mark… rather than us saying “no we will only pay you $30p/h” seems more than fair to say, work with me for a pre-agreed timeframe and demonstrate you’re worth it. If you are I’ll pay what you’re asking, even though it’s more than we were expecting. What’s more, we provide other fringe benefits when they work with us too. If the VA doesn’t like it, they don’t have to apply for the position…
Again, really not seeing how anyone could interpret what we do as not fair.
Your SEO Coach,
Dave
I think it’s all in the terminology David. You mention VAs and Virtual Assistants but what you describe in your post really relates to virtual employees and remote workers. They are two different things entirely – the concern for the VAs responding to this post is that you’ve mixed the two up. Basically one is an employee, the other a business owner/operator.
Hi David,
A controversial post – the best way to increase traffic to your blog and increase your ranking. A technique I’ve come across in training I have done over the years. You’ve also used a high traffic and highly searched term to drive that traffic which is why, I suspect, it will not disappear from your title.
I am also a Virtual Assistant based in Australia and have been for over…….well, it doesn’t really matter now does it. OK, I did have a long reply however, I have decided to cut it down. Bottom line:
* There is a MASSIVE difference between a Virtual Assistant and a Virtual Employee/Team Member.
* Suggestion: perhaps complete some thorough research back to when the phrase was coined in 1996 and then you will hopefully understand that to us this is not a ‘storm in a teacup’.
* Suggestion: in future perhaps consider inviting an expert from within the industry here in Australia (i.e. Kathie T. who is in Melbourne) to train people on things relevant to the industry. This would save you the so-called ‘storm in a teacup’ and make sure people attending and paying for your courses are getting correct information.
* Tip: perhaps be a little more careful about the images you use on your posts. Even though you have removed it from your blog, it still appears everywhere that has linked to this post (i.e. Facebook news feeds in groups/pages). So, many will continue to be offended by that degrading image.
Have a splendid Melbourne day.
Debra
I also agree with having a trial period especially for outsourcing services.