2025 global workforce report
Lean HR, global scale: Intentional AI reshapes the global workforce
Explore findings from more than 3,650 HR and business leaders on the rise of lean HR teams. See where international hiring is picking up pace, the risks that cost organisations millions, and how next‑gen technology and new models help them keep up.
Here’s what you’ll find inside:
- How AI and an integrated stack for payroll, compliance and people ops serve small HR teams
- Regions where international hiring is surging, and why most new hires are projected to be abroad by 2026
- Practical playbooks for leaders tackling cross-border challenges (from EOR to unified payroll)
Download the report (state of payroll reports – shared)
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The next wave: As global hiring expands rapidly, pioneering automation keeps it manageable
International hiring continues to accelerate, and HR teams are finding new ways to adapt. Teams that often number fewer than 10 people are managing payroll, compliance and recruiting across multiple countries, with AI and integrated systems at their core.
Smaller teams now execute global strategy more intelligently, quickly and intuitively, showing that HR’s influence depends on tools and processes rather than headcount.
In practice, this means compact HR teams are carrying out the work of much larger groups and succeeding. They do so by leveraging existing EOR partnerships while pushing for more integrated payroll and HRIS.
Companies that can handle cross-border regulations, contractor classification and multi-currency payroll sensibly can avoid risk and moving into new markets faster.
“The initial wave of HR technology made global hiring possible. The next wave is changing how those teams are managed. Beyond simply supporting HR ops, AI is becoming the operating system for running a global workforce.”
Job van der Voort, CEO & co-founder, Remote.
Intentional AI and intuitive automation lead the way
Teams that are making real progress with new tools apply AI deliberately and with restraint. That reduces noise and repetitive administration, giving teams room to pursue higher-impact goals. When AI is poorly applied it creates more work; when it is thoughtfully embedded in the right systems it has the opposite effect for organisations operating globally. All-in-one platforms with a responsive, adaptable HRIS provide lean teams a single place to manage hiring, payroll and compliance. Combined with self-service employee portals and intelligent automation that handles routine admin behind the scenes, HR can focus on culture, retention and growth planning. With these foundations, small HR teams can scale workforces and deliver an agile employee experience across every market.
By numbers: Snapshot statistics of the second-wave expansion for global scale and micro HR
Small HR teams are shouldering global responsibilities
Although most companies no longer have large HR departments, they still manage hiring, payroll and compliance across borders—often more effectively.
87%
Companies with HR teams of fewer than 10 people
International hiring is becoming the default
Leaders predict most new positions will be filled overseas, signalling that international hiring has become the norm rather than the exception.
73%
Expect over half of new hires to be international by 2026
Automation is taking on HR’s heavy lifting
AI and automation are working behind the scenes in HR, streamlining administration and freeing teams to concentrate on expansion plans, people-centred work and culture.
64%
Expect 64% of routine HR tasks to be automated by 2026
Compliance is the area where companies most often stumble
Cross-border expansion is accelerating, yet many employers still face regulatory hurdles that slow them down and increase costs.
74%
Have encountered compliance challenges abroad
$42,000 USD
Average cost of each compliance incident
Actionable insights contained in the report
About the survey scope and data:
To compile this dataset, we surveyed 3,650 HR and business leaders (director level and above) across the USA, UK, Germany, France, Spain, the Netherlands, Spain, Sweden, Australia, Singapore and South Korea.
The 2025 data delivers a clear message: leaders are tired of juggling multiple systems. Many are actively searching for a replacement HRIS.
In fact, 51% say they are looking for a new platform at present, and a further 36% would consider switching later for a single integrated solution capable of handling global payroll, compliance and reporting.
The report examines how companies are navigating this shift and outlines what “good” looks like.
Employer of Record services have entered the mainstream, moving beyond niche solutions.
55% of companies employing internationally already use an EOR, and satisfaction levels are high, 76% of leaders using EORs say they are happy with the model. The report unpacks how leaders evaluate entity setup, contractor use and EOR partnerships, and which combinations work best in practice.
Increasingly, contractors are regarded as an intentional element of workforce design rather than a fallback. 79% of leaders report contractors and freelancers have become a more significant part of their strategy.
Many companies depend on contractors to test new markets, access niche skills and flex headcount without long-term commitment. The report examines how companies balance this approach with compliance realities and misclassification risk.
Employees are asking tougher questions about pay. 82% of HR leaders report greater pay pressure because of cost-of-living increases, while 77% believe that pay transparency will improve culture. The report looks at how leaders are responding to these twin pressures by rethinking compensation, retention and global fairness.
Unsurprisingly, AI is now embedded in everyday HR, though adoption varies. 64% of leaders expect that two-thirds of HR’s routine tasks will be automated by 2026.
Meanwhile, 28% of leaders stopped using an AI hiring tool due to fairness concerns, while 27% adopted new tools.
The report highlights where AI already produces benefits, where it is backfiring, and how leaders are approaching governance.
Most companies have received employee requests to relocate or to work while travelling in the past year.
80% of leaders reported getting these requests, so employee mobility has moved beyond the 'edge case' category. HR must plan for it now.
The report examines strategies for work-from-anywhere requests, relocation policies and payroll and compliance tools for a workforce that will not remain in one place.
