The 2025 global workforce report
Lean HR on a global scale: intentional AI is reshaping the global workforce
Explore findings from more than 3,650 HR and business leaders about the rise of lean HR teams. Find out where global hiring is picking up speed, the risks that are costing companies millions, and how next‑generation technology and new models help them keep up.
What to expect inside:
- How AI plus an integrated stack for payroll, compliance and people ops supports small HR teams
- Which markets are experiencing a surge in global hiring, and why most new hires are expected to be overseas by 2026
- Playbooks for leaders on addressing cross-border challenges (from EOR to unified payroll)
Download the report (state of payroll reports – shared)
Download the report
The next wave: As global hiring surges, pioneering automation keeps it manageable
The rise in cross-border hiring shows no sign of easing, and HR teams are changing how they operate. Units with fewer than 10 people are increasingly responsible for payroll, compliance and hiring across multiple countries, with AI and integrated systems at the centre of their approach.
Smaller teams now execute global strategy with greater speed, intelligence and intuition, showing that HR’s influence is determined by its tools and processes rather than headcount.
In practice, small HR groups are carrying the responsibilities of much larger departments and are delivering results. They achieve this by relying on existing EOR partnerships while advocating for tighter integration between payroll and HRIS.
Companies that can manage cross-border regulations, contractor classification, and multi-currency payroll the smart way can avoid risk and entering new markets more quickly.
“The first wave of technology in HR made it possible to hire globally. The next wave is transforming how those teams are managed. Beyond supporting HR ops as standard, AI is becoming the operating system for how companies run a global workforce.”
Job van der Voort, CEO & co-founder, Remote.
Intentional AI and intuitive automation are central
Teams that are making measurable progress with new tools and technology deploy AI with intention and appropriate restraint. This reduces background noise and repetitive administration, creating space for teams to pursue higher‑impact objectives. When AI is poorly implemented it increases workload; when it is thoughtfully embedded in the right systems it delivers the opposite effect for a global enterprise. Integrated all-in-one platforms with a responsive, adaptable HRIS provide lean teams a single, central place to manage hiring, payroll and compliance. Combined with self-service employee portals and smart automation that handles routine admin behind the scenes, HR can spend time on culture, retention and growth planning. Built on these foundations, small HR teams can scale workforces and deliver an agile employee experience across all markets.
Move with the next wave: hyper-global growth is surging now and set to continue. Discover 'the how' in the 2025 global workforce report
By the numbers: Quick snapshots of second-wave expansion metrics for global scale and micro HR
Small HR teams now shoulder global responsibilities
Although most companies no longer maintain large HR departments, they continue to oversee hiring, payroll and cross-border compliance, often more effectively.
87%
Of companies, HR teams consist of fewer than 10 people
International hires are increasingly the default option
Leaders anticipate most new roles will be filled overseas, indicating international hiring is now the norm rather than the exception.
73%
Expect that more than half of new hires will be international by 2026
Automation is assuming HR's heavy lifting
AI and automation are being embedded in HR operations, reducing administrative tasks and freeing teams to concentrate on growth, people and culture.
64%
Of routine HR tasks, a large share is expected to be automated by 2026
Compliance is the area where companies most often stumble
Cross-border growth is strong, yet many employers continue to hit regulatory hurdles that slow progress and raise costs.
74%
Have encountered compliance challenges abroad
$42,000
Average cost of each compliance incident
Practical insights from the report
About the survey’s scope and data:
To create 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 send a clear signal: leaders are fed up with managing multiple systems. Many are actively seeking to replace their HRIS.
In fact, 51% are currently seeking a new platform, and a further 36% would contemplate switching later for a single, integrated platform that manages global payroll, compliance, and reporting.
The report examines how organisations are approaching this change and what “good” looks like.
Employer of Record services have entered the mainstream, moving beyond niche solutions.
55% of companies that employ internationally already use an EOR, and satisfaction is generally strong, 76% of leaders relying on EORs report satisfaction with the model. The report details how leaders balance entity formation, contractor strategies and EOR partnerships to find the most effective combination in practice.
Increasingly, organisations treat contractors as a deliberate element of workforce design rather than a stopgap. 79% of leaders report that contractors and freelancers play a larger role in their strategy.
Numerous organisations use them to pilot new markets, access niche skills, and flex headcount without long-term commitments. The report examines how organisations balance this tactic with the practicalities of compliance and misclassification.
Employees are demanding tougher answers on compensation. 82% of HR leaders say pay pressure has risen because of cost-of-living increases, while 77% believe that pay transparency will strengthen culture. The report examines how leaders are responding to these twin pressures by re-evaluating compensation, retention, and global fairness.
Predictably, AI is now embedded in day-to-day HR, although uptake varies. 64% of leaders anticipate that two-thirds of routine HR tasks will be automated by 2026.
Meanwhile, 28% discontinued an AI hiring tool due to fairness worries, while 27% introduced new tools.
The report highlights areas where AI is having impact, where it falls short, and how leaders are establishing governance.
Most companies received requests from employees to relocate or to work while travelling over the past year.
80% of leaders reported receiving these requests, so employee mobility is no longer an 'edge case'. HR must prepare 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 a single location.
