The rise of virtual assistants

With rising employment costs and ongoing pressures on margins, many employers are rethinking how they resource their businesses. One trend that has gained momentum in recent years is the use of virtual assistants (VAs). For some, they represent a flexible, cost-effective way to plug skills gaps and reduce the burden on permanent staff. However, for others, they raise concerns about control, confidentiality and the blurred line between contractor and employee.

So, should businesses embrace virtual assistants as part of their strategy, or approach with caution?

Why virtual assistants are gaining traction

The appeal of VAs is easy to understand. Rather than committing to a full-time hire, a business can bring in a virtual assistant for only the hours or projects they need. For a founder juggling multiple roles, or a stretched HR team dealing with peaks in workload, the ability to outsource routine but time-consuming tasks can be a lifeline. VAs also tend to bring specialist skills, such as executive support, finance, or marketing, giving smaller companies more agility and no need to increase headcount. VAs can also give organisations access to expertise that would otherwise be out of reach.

There is also the financial reality that employers working with a VA do not pay National Insurance, holiday pay or pension contributions, and avoid the overheads of office space and equipment. In a climate where wages, benefits and compliance costs are only moving in one direction, the attraction of a flexible contractor model is pretty clear.

The challenges behind the flexibility

The very flexibility that makes VAs attractive can also be the biggest drawback. Unlike employees, contractors control when and how they work, which can make it harder to guarantee availability at critical moments. Continuity can also be another issue if a VA steps away from the role; the knowledge they hold may leave with them, which is where considerations around intellectual property come into play. If contracts are not carefully drafted, the ownership of work created by a VA may not automatically sit with the business, opening the risk of exposing employers to disputes and gaps in protection.

While many VAs are highly skilled and professional, standards can vary, and it takes time and precious resources to identify the right person. Trust is also a key consideration, as outsourcing administrative or operational functions will inevitably involve giving access to confidential or commercially sensitive information. Without the right safeguards in place, this creates risks that may outweigh the benefits.

Making virtual assistants work for your business

For businesses considering this route, the key is to use VAs strategically rather than as a blanket substitute for in-house roles. VAs tend to be most effective when handling defined, repeatable tasks or providing short-term support to cover peaks in demand. Successful arrangements often depend less on the skills of the VA alone and more on the clarity of the brief, the quality of communication, and the way the relationship is managed day-to-day.

Equally important is the need for businesses to take legal and contractual precautions from the outset. VAs are not employees, but the way they are engaged must make that clear. If a business dictates working hours, integrates a VA into the team in the same way as an employee, or relies on them exclusively, it risks misclassifying the relationship, a mistake that can bring employment law liabilities. A well-written contract should set out exactly what is expected, how the VA will be paid, and what happens if either party wants to end the arrangement.

If a VA handles personal or client information, the business remains responsible under GDPR for how that data is processed. That means limiting access to what is strictly necessary and putting data processing agreements in place.

Opportunity or risk?

The growth of virtual assistants is not a passing fad; it reflects a broader shift towards more flexible ways of working and resourcing. They can be a valuable tool to manage costs, fill skills gaps and scale quickly. But like any business decision, success lies in how they are used. With the right safeguards, VAs can strengthen a business and free up leaders to focus on growth. Without safeguards, the risks to culture, compliance and reputation are high.

If you are considering using virtual assistants or would like to sense-check plans, our expert employment law solicitors are on hand to talk through your options.