Answer these questions honestly. Do you spend too much time looking for effective ways of managing your company? Do you micromanage or struggle to keep up with new rules and regulations? If so, it might be time to bring in third-party help. Outsourcing company secretarial services can be a cost-effective way of streamlining your business while ensuring compliance with changing legislation and providing you with access to multiple experts on an ad-hoc basis as and when you need it.
What is the role of a Company Secretary?
The Company Secretary plays an essential role in keeping things running smoothly inside a corporation. Some of the most common responsibilities include providing corporate governance and guidance on how to direct, manage, and control an organisation.
However, Company Secretaries are also responsible for matters relating to compliance with legal and regulatory requirements. The role can also include director training and induction, board evaluation, company secretarial coaching and mentoring, compliance advisory and support.
Having an in-house company secretary may seem tempting. After all, with an internal role you don’t have to share any company information with third parties, and you have a dedicated employee that is always available when needed. However, more often than not, you’ll find yourself paying a full-time salary when it isn’t required.
Reducing costs is just one of the many reasons outsourcing these services has become the new norm for many companies. Working with a dedicated provider to fulfil your company secretarial needs comes with multiple benefits. Let’s take a closer look.
1. Outsourcing can be more cost-effective
Besides paying a full-time salary, hiring comes with a series of hidden costs. When you bring in a new employee, you need to provide them with an office, specific equipment, furniture, training and supplies. You may also incur other often ignored hiring expenses, such as software licensing fees, health insurance, retirement contributions and other benefits like parking spaces, gym memberships, and team building activities.
Some of these hidden expenses may seem insignificant at first, but they can quickly add up. On the other hand, when you outsource service level agreements and payments are set in stone, and any changes must be agreed upon. You know how much you’ll pay right from the start, with no hidden expenses to worry about.
2. Access to multiple specialists and experts
When you work with in-house experts only, you have limited access to talent. Even the best employee can’t know everything about governance and compliance. If you’re faced with a particularly complex situation, you may even need to contact a specialised consultant or legal expert to provide additional guidance.
Outsourcing gives you access to a comprehensive series of services, including company secretarial governance, compliance health checks, board and committee evaluation, risk management, and audit compliance. One person alone can’t cover all the facets of secretarial services with 100 per cent knowledge in all these areas.
By outsourcing company secretarial services, you get access to multiple experts in their respective fields for a fraction of the cost. A mixed team of specialists will handle your complex legal issues and paperwork, without you having to pay them full-time salaries or provide any additional benefits.
3. No challenges with cover during holidays and sickness
Another benefit of outsourcing company secretarial services is not having to manage busy periods and absences or scramble around trying to find cover. When outsourcing, sick pay and paid time off don’t fall under your responsibilities.
You have a clear contract in place that guarantees you access to extensive services and ensures that you’re always covered with complete continuity of service.
4. Less risk and greater flexibility
Another key point to consider when evaluating the benefits of outsourcing company secretarial services is the reduced risk implied. When you collaborate with a professional service provider, you share the responsibility of governance and compliance.
For this reason, it’s in the best interest of company secretarial service providers to work with people who have in-depth knowledge of corporate law and specific industry requirements. These are subject matter experts who live and breathe compliance, so you’re less likely to run into any non-compliance issues than if you only rely on one in-house expert.
You also have the flexibility to pay for the hours and the services you require on an ad-hoc, as-needed basis rather than committing to providing a full-time role.
5. Save on recruitment costs
Companies spend, on average, a total of 42 days to fill a single position and a cost of £4,129 per hire. When outsourcing company secretarial services, you don’t have to spend weeks or even months to recruit, train, and onboard skilled people – and you can save costs on the recruitment process as well.
Once you find a suitable provider, you can forget about the hassle of hiring and supervising another employee. The experts who handle your paperwork and manage your processes are fully trained and have extensive experience in their niche.
Moreover, you’ll never have to spend on additional training, regardless of any changes that occur in legislation as your outsourcing provider will handle everything for you.
The benefits of outsourcing company secretarial services go way beyond cost savings. You can improve your company governance while ensuring compliance with corporate law. Working with specialists who are experts in their legal niche also gives you peace of mind – for a fraction of the cost of hiring in-house experts.
MSP offers company secretarial and legal services that help businesses of all sizes and structures to focus on their core responsibilities and improve performance. If you’d like to find out how to get started with a professional partner, simply request a call back today. We’ll be happy to assist.