“I need a VA for about 8-10 hours a month, but I need them available when I need them. It’s like a flexible need, and I was thinking maybe $50 an hour?”
I have this conversation very often at networking events, and in discovery calls, and because I get to support employers and business owners alike, I see and hear it more than I ever expected.
I get it. If you’ve only ever hired employees, the shift to working with contractors – which is what most VAs, OBMs, and virtual support professionals are – feels unfamiliar. Sometimes uncomfortable (and other times, really uncomfortable).
It gets messy when you start treating a contractor like an employee – it doesn’t just create confusion, it creates legal issues, damages working relationships, and honestly, it’s not fair to either of you.
Let’s break down what actually works when you’re bringing virtual support into your business.
Three Ways to Work with a Virtual Support Provider (and Compare it to Employment Types)
1. Ad Hoc Support = Casual Employee Energy
This is your “call when needed” arrangement. Think about how you’d work with a casual employee – you’d contact them when a shift comes up and ask if they’re available. They say yes or no based on their schedule.
With a contractor, it’s the same deal.
You reach out when you need support, they tell you if they have capacity. No guarantees either way. No expectations of regular hours.
Where it goes wrong: Expecting them to drop everything and be available immediately, or getting frustrated when they’re booked with other clients. They’re not sitting around waiting for your call – they’re running a business with multiple clients and commitments.
2. Project-Based = Getting Your Toilet Replumbed
You need specific work done. You agree on scope, timeline, and price. They book that chunk of time to complete the work. Once it’s done, the engagement ends.
You wouldn’t expect your plumber to also fix your leaking tap three weeks later without a new conversation and agreement, right? Same principle applies here.
Where it goes wrong: Scope creep. “Oh, while you’re in there, can you just…” No. New work means new agreement. Respect the boundaries of what was actually discussed and contracted.
3. Retainer = Permanent Employee Vibes
This is ongoing, regular support. Set hours each week or month. Consistent work. It’s the closest thing to a traditional employment relationship, except it’s still not employment.
Where it goes wrong: Everything else that comes with employment. You can’t dictate when they work those hours (within reason), you can’t require them to attend team meetings outside their contracted time, and you definitely can’t treat them like they’re on staff for other HR purposes.
The Bit People Forget: The Money Conversation
When you pay an employee $45 per hour, you’re also paying their superannuation, their leave entitlements, their workers compensation insurance, and covering their equipment and training costs.
When you pay a contractor $75-$150 per hour, they’re covering their own taxes, superannuation, platform fees, software subscriptions, professional indemnity insurance, public liability insurance, professional development, equipment, and all the business costs that come with running their own operation.
It’s not comparable, and that’s before we even get into the fact that they’re juggling multiple clients, not just you.
The rates aren’t inflated.
They’re reflective of what it actually costs to run a legitimate business in Australia.
The Mindset Shift Nobody Tells You About
Here’s what makes this transition hard for a lot of business owners: letting go of control.
With an employee, you get to dictate how, when, and where the work gets done. With a contractor, you agree on the outcome and trust them to deliver it using their expertise and systems.
That’s actually the point. You’re paying for someone who knows how to do the work without you micromanaging every step. If you need that level of control, you probably need an employee – with all the costs and responsibilities that come with it.
I work with both solo operators building their businesses and corporate employers managing teams. The ones who get the best results though, are the ones who understand this difference from day one, or get the guidance to understand the difference.
They set clear expectations. They respect boundaries. They communicate well, and they treat their contractors like the business owners they are.
The ones who struggle are usually trying to force an employee-shaped expectation onto a contractor-shaped relationship.
And everyone ends up frustrated.
Why This Matters Beyond Legal Semantics
This isn’t just about staying on the right side of employment law (though that matters too). It’s about setting up working relationships that actually function for everyone involved.
When you understand how to work with contractors effectively, you get:
- Access to incredible expertise without the overhead of permanent staff
- Flexibility that employees can’t offer
- Relationships built on mutual respect rather than outdated power dynamics
- Better outcomes because you’re working with people who genuinely want to be there
When you get it wrong, you end up with resentful contractors, scope creep that kills profitability, confused expectations, and working relationships that fall apart within months.
So, What Does Good Look Like?
Working well with contractors means:
You’re clear about what type of support you need before you start the conversation. Ad hoc? Project? Retainer? Know what you’re actually looking for.
You respect that contractors have other clients and commitments. They’re not exclusively yours unless you’ve specifically contracted for that time (and paid accordingly).
You understand that their rates reflect their business costs, not just their time. See above re: the money conversation.
You communicate scope, expectations, and boundaries upfront. No assumptions, no “I thought you’d just know,” no moving goalposts.
You don’t expect contractor rates with employee availability. Pick one. You can’t have both.
This isn’t about being difficult or precious. It’s about understanding how professional services actually work in 2025.
Setting Yourself Up for Success
If you’re bringing virtual support into your business for the first time, take a breath and do the groundwork.
Work out what you actually need support with and how often. Be realistic about volume and frequency.
Decide which support model matches that need. Don’t try to shoehorn a retainer into what’s actually project work.
Have a proper conversation about expectations, boundaries, and working arrangements before anyone starts work.
Services provided should be in writing. Contracts aren’t just legal protection – they’re clarity for everyone involved.
And if you’ve been treating your contractors like employees (even accidentally), it’s not too late to reset the relationship. Start with an honest conversation about expectations (sometimes it’s actually with ourselves) and go from there.
Most people appreciate the clarity more than you think.
Getting the foundations right makes everything else easier.
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