The 2025 global workforce report
Lean HR, global scale: Intentional AI moves the global workforce
Find out what more than 3,650 HR and business leaders are saying about the growth of streamlined HR teams. See which markets are experiencing the fastest hiring growth, the risks costing companies millions, and how next‑gen technology and new working models help them keep up.
What you'll find inside:
- How AI combined with an integrated payroll, compliance and people‑ops stack supports small HR teams
- Which regions are seeing hiring accelerate, and why most new hires are likely to be overseas by 2026
- Guides for leaders addressing cross‑border challenges (from EOR to unified payroll)
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The next wave: As global recruitment scales up, pioneering automation keeps it manageable
The rise in international recruitment shows no sign of easing, and HR teams are responding with different approaches. Teams of often fewer than 10 people are now managing payroll, compliance and hiring across multiple countries, with AI and integrated systems at their core.
Smaller teams are now executing global strategy more intelligently, more quickly and with greater intuition, demonstrating that HR’s influence is shaped by the tools and processes available rather than by headcount.
In practical terms, small HR teams are delivering the output of much larger departments and succeeding. This is enabled by relying on existing EOR partnerships while advocating for better-integrated payroll and HRIS.
Companies that handle cross-border regulations, contractor classification and multi-currency payroll intelligently 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 where organisations should focus
Teams that are genuinely advancing with new technologies apply AI with intent and sufficient foresight to avoid excess. That reduces background noise and repetitive administrative tasks, freeing teams to concentrate on higher-impact objectives. Poorly implemented AI can add workload; when thoughtfully embedded in suitable systems, it achieves the opposite for a global business. All-in-one platforms featuring a responsive, adaptable HRIS provide lean teams with a single location to oversee hiring, payroll and compliance. Combined with self-service employee portals and intelligent automation that handles routine administration unobtrusively, HR can devote time to culture, retention and strategic growth plans. With these foundations in place, small HR teams can scale headcount and deliver an agile employee experience across every market.
Move with the next wave: hyper-global growth is up now, and up next. Tap into 'the how' with the 2025 Global Workforce Report
The figures: concise snapshots of second-wave expansion metrics for global-scale and micro HR
Small HR teams are shouldering global responsibilities
Most organisations no longer have sizeable HR departments. Nevertheless, they still manage cross-border hiring, payroll and compliance, and frequently do so more effectively.
87%
of companies have HR teams of fewer than ten people
International recruitment is now the standard approach
Leaders anticipate most new roles will be filled overseas, demonstrating that international hiring has become the norm rather than the exception.
73%
expect more than half of new hires to be international by 2026
Automation is taking on HR’s most labour-intensive work
AI and automation are being integrated into the background of HR operations, simplifying administrative tasks and freeing teams to focus on expansion, people and culture.
64%
of routine HR tasks are expected to be automated by 2026
Compliance is the area in which companies most often falter
Cross-border expansion is gathering momentum, yet many employers continue to encounter regulatory obstacles that impede progress and increase costs.
74%
have encountered compliance challenges overseas
$42,000
average cost per compliance incident
Actionable insights inside the report
About the survey's scope and dataset:
To assemble 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.
A clear finding in the 2025 data: leaders are fed up with juggling multiple systems. Many are actively seeking to replace their HRIS.
In fact, 51% say they are currently searching for a new platform, and a further 36% would contemplate switching later in return for a single, integrated solution that can handle global payroll, compliance and reporting.
The report examines how organisations are responding to this shift and what “good” practice looks like.
Employer of Record services have become mainstream, moving beyond niche solutions.
55% of companies with international employees already use an EOR, and satisfaction is strong, 76% of leaders using EORs say they are satisfied with the model. The report analyses how leaders are evaluating entity setup, contractor strategies and EOR partnerships, and which combination performs best in practice.
Increasingly, contractors are seen as an intentional element of workforce planning rather than a fallback. 79% of leaders report that contractors and freelancers have become a more important element of their strategy.
Many organisations rely on them to trial new markets, provide niche skills, and flex headcount without long-term commitments. The report examines how firms balance this approach against the realities of compliance and the risk of misclassification.
Employees are posing tougher questions about pay. 82% of HR leaders report heightened pay pressure because of cost-of-living rises, while 77% believe greater pay transparency would improve culture. The report examines how leaders are responding to these combined pressures by revising compensation, retention and global fairness.
It is unsurprising that AI has entered routine HR work, yet adoption remains patchy. 64% of leaders anticipate that two-thirds of HR’s routine tasks will be automated by 2026.
Meanwhile, 28% stopped using an AI hiring tool owing to fairness concerns, while 27% adopted replacements.
The report highlights where AI is already having an impact, where it is causing problems, and how leaders are approaching governance.
Most companies have received employee requests to relocate or to work while travelling over the past year.
80% of leaders reported receiving such requests, meaning employee mobility is no longer an 'edge case'. HR must plan for this 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.
