Why Outsource Human Resources?

Human resources outsourcing is growing rapidly worldwide. According to a study by Technavio, the global HR outsourcing market is expected to grow to more than $13 billion by 2028, with an average annual growth rate of 5.7%.

This trend is driven by the growing need for companies to reduce costs, increase agility and gain access to specialist expertise without adding to their internal structure.

At a time when Quebec organisations are facing labour shortages and constantly changing regulations, HR outsourcing is emerging as a strategic solution.

What is human resources outsourcing?

Outsourcing human resources (or "HR outsourcing") involves entrusting an external partner with the partial or complete management of certain personnel management functions.

In other words, the company delegates part of its HR responsibilities to a trusted service provider, while retaining supervision and decision-making powers.

Which HR functions can be outsourced?

Outsourcing human resources does not mean handing everything over to a partner. Rather, it means choosing the HR areas that would benefit most from specialist expertise, depending on the size of the company, its objectives and its internal structure.

Here are the main HR functions that an organisation can outsource:

1. HR strategy and support

Some companies choose to go beyond simple operational management by entrusting external experts with strategic support mandates.

• Organisational diagnosis to assess structure, processes and internal climate.

• Change management, particularly during mergers, reorganisations or digital transformations.

• Development of HR policies adapted to the company's reality (teleworking, pay equity, recognition).

• Support for managers in their management practices, internal communication and team mobilisation.

2. Payroll and personnel administration

This is one of the most frequently outsourced areas, as it requires a combination of rigour, legal expertise and high-performance technological tools.

• Complete payroll management (accounting breakdown): calculation of wages, deductions at source, government remittances and production of tax statements.

• Benefits administration: management of group insurance, holidays, leave and pension plans.

• Monitoring employee files: updating contracts, tracking hours, absences and social declarations.

• Regulatory compliance:compliance with labour standards and CNESST and Revenu Québec requirements.

Outsourcing payroll reduces the risk of errors, saves time and ensures ongoing compliance with legal obligations.

3. Recruitment and integration

Recruiting the right profiles is a constant challenge, especially in a context of labour shortages. By outsourcing this function, you can improve the speed, efficiency and quality of your selection process.

• Drafting and distributing job offers tailored to the company's channels and tone.

• Sorting and shortlisting applications, telephone interviews and structured interviews.

• Accompaniment throughout the hiring process, from checking references to signing the contract.

• Support for the integration of new recruits (onboarding), to encourage their commitment from the very first days.

Thanks to the expertise of an HR partner, recruitment becomes a fluid, structured process aligned with the company's culture.

4. Training and skills development

Outsourcing training means ensuring that skills development remains a priority, even in busy periods.

• Developing and updating training plans according to the organisation's current and future needs.

• Logistical organisation of training (trainers, registrations, attendance monitoring).

• Monitoring key skillsand supporting employees in their career development.

• Leadership development, team management or communication programmes.

Each company can choose to outsource all or part of its HR activities, depending on its size, budget and organisational maturity.

The important thing is to strike the right balance between internal autonomy and external support, so as to build an agile, high-performance HR function tailored to your business objectives.

The Benefits of HR outsourcing

Reduce costs and save time

Outsourcing human resources reduces the fixed costs associated with an in-house HR department while offering greater budget flexibility. The company only pays for the services it really needs, without having to pay for the salaries and training of an entire team.

Access to advanced technological tools (payroll software, application management, dashboards) is provided without major investment. As a result, managers can concentrate on their core business, while saving precious time on administrative management.

Access to specialist expertise

When you call on an external partner, you benefit from cutting-edge, up-to-date expertise in a number of areas: payroll management, pay equity, recruitment and legal compliance.

Our specialist advisers are fully conversant with the latest practices and keep a constant watch on regulations, particularly in relation to the CNESST and labour laws.

Gaining in flexibility and agility

Outsourcing enables companies to adapt quickly to change (growth, restructuring, mergers or temporary replacements). By mobilising external resources on demand, organisations retain valuable agility without burdening their internal structure.

This flexibility makes it easier to respond to market needs and simplifies the management of change, whether technological, organisational or human.

Ensuring compliance and peace of mind

By entrusting their HR functions to an external partner, companies can be sure of constant compliance with Quebec labour laws and standards. The experts ensure compliance with payroll, benefits, health and safety and internal policies.

This rigour reduces the risk of fines or litigation and guarantees reliable processes. The result is peace of mind for managers, who know that their practices are supervised and secure.

Outsource your human resources to experts

HR outsourcing is more than just delegation. It's a strategic partnership that allows companies to focus on the essentials while optimising their internal processes.

With the support of Mallette's experts, you benefit from a trusted team that understands your challenges, masters the legal obligations and puts people at the heart of performance.

Find out how our HR services can simplify your management and support the growth of your business.