2025 global workforce report
Lean HR at global scale: intentional AI reshapes the global workforce
Find out what more than 3,650 HR and business leaders revealed about the rise of lean HR teams. See which regions are accelerating global hiring, the risks costing companies millions, and how next‑gen technology and new operating models help them keep pace.
What to expect inside:
- How AI and an integrated stack for payroll, compliance and people ops support lean HR teams
- Which markets are seeing hiring surges, and why leaders expect most new roles to be filled overseas by 2026
- Leader playbooks for resolving cross-border challenges (from EOR to unified payroll)
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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 adapting in new ways. Small departments — often under 10 people — are running payroll, compliance and recruitment across multiple countries with AI and integrated systems at their core.
Compact teams are now executing global strategy more intelligently and quickly, showing that HR’s impact depends on tools and processes rather than headcount.
In practice, small HR teams are handling responsibilities usually associated with much larger departments — and succeeding. They leverage existing EOR partnerships while pushing for tighter integration between payroll and HRIS.
Companies that can manage cross-border regulations, contractor classification, and multi-currency payroll intelligently can reduce risk and move into new markets faster.
“The initial wave of HR technology made global hiring possible. The following wave is changing how those teams are managed. Beyond serving HR ops as standard, AI is becoming the operating system for running a global workforce.”
Job van der Voort, CEO & co-founder, Remote.
Intentional AI and intuitive automation are the defining trends
Teams making meaningful progress with new tools deploy AI deliberately, with measured foresight to avoid excess. That reduces noise and repetitive administration, and gives space for higher‑value work. Misapplied AI creates extra work; well‑designed AI embedded in the right systems delivers the opposite for global organisations. 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 smart automation that handles routine administration 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, consistent employee experience across every market.
By numbers: snapshots of second‑wave expansion statistics for global scale and micro HR
Small HR teams are carrying global weight
Most organisations no longer have large HR departments, yet that does not stop them from managing hiring, payroll and compliance across borders — often more effectively.
87%
of companies operate HR teams with fewer than 10 people
International hiring is becoming the default
Leaders expect most new positions to be filled overseas, signalling that international hiring is now the norm rather than the exception.
73%
Expect that over half of new hires will be international by 2026
Automation is taking on HR’s heavy lifting
AI and automation are operating behind the scenes in HR, streamlining administration and giving teams more capacity for expansion plans, people‑focused work and culture.
64%
Of routine HR tasks are projected to be automated by 2026
Compliance is where companies most often stumble
Cross‑border expansion is accelerating, but many employers still encounter regulatory challenges that slow them down and increase costs.
74%
have experienced compliance challenges abroad
$42,000
average cost of each compliance incident
Actionable insights inside the report
About the survey scope and data:
This dataset was compiled by surveying 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 signal from the 2025 data: leaders are tired of juggling multiple systems. Many are actively seeking to replace their HRIS.
In fact, 51% say they are searching for a new platform right now, and another 36% would consider switching later in exchange for a single, integrated solution that can handle global payroll, compliance and reporting.
The report examines how companies are navigating this change and what an effective approach looks like.
Employer of Record services have moved into the mainstream, leaving niche status behind.
55% of companies employing internationally already use an EOR, and satisfaction levels are high, 76% of leaders using EORs say they are satisfied with the model. The report unpacks how leaders balance entity setup, contractor use and EOR partnerships, and which mixes work best in practice.
Increasingly, contractors are planned elements of workforce design rather than emergencies. 79% of leaders say contractors and freelancers have become more central to their strategy.
Many companies rely on contractors to pilot new markets, access specialist skills, and flex headcount without long-term commitments. The report explores how firms balance this with the realities of compliance and misclassification.
Employees are asking tougher questions about pay. 82% of HR leaders report increased pressure on pay due to cost‑of‑living rises, while 77% believe pay transparency will improve culture. The report examines how leaders are responding to these twin pressures by rethinking compensation, retention and global fairness.
Unsurprisingly, AI is now part of day‑to‑day HR, though adoption varies. 64% of leaders expect two‑thirds of HR’s routine tasks to be automated by 2026.
At the same time, 28% stopped using an AI hiring tool over fairness concerns, while 27% adopted new ones.
The report highlights where AI is delivering results, where it is causing problems, and how leaders approach governance.
Most companies have received employee requests to relocate or to work while travelling during the past year.
80% of leaders reported these requests, so employee mobility is no longer an 'edge case'. 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 does not remain in one place.
