2025 global workforce report
Lean HR, global scale: intentional AI transforms the global workforce
Discover findings from responses by over 3,650 HR and business leaders about the growth of lean HR teams. See which regions are accelerating global hiring, the risks costing companies millions, and how next‑gen technology and new models help teams keep up.
Here’s what you’ll find inside:
- How AI and an integrated stack for payroll, compliance and people ops suit small HR teams
- Which regions are seeing a surge in global hiring, and why most new hires are expected to be overseas by 2026
- Guides 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 expands, pioneering automation keeps it manageable
The surge in international hiring is not easing, and HR teams are changing how they operate. Departments often with fewer than 10 people are overseeing payroll, compliance and hiring across multiple countries, with AI and integrated systems at their core.
Smaller teams are now shaping global strategy more intelligently, more quickly and with greater intuition, showing that HR’s influence is set by the tools and processes rather than headcount.
In practice, this means small HR teams are covering the work of much larger ones and delivering results. They do this by relying on established EOR partnerships while pushing for tighter integration between payroll and HRIS.
Companies that can manage cross-border regulations, contractor classification, and multi-currency payroll sensibly can avoid risk and moving into 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 what matter
The teams making genuine progress with new tools and technology deploy AI deliberately, with enough foresight to avoid excess. That cuts noise and repetitive admin, and gives teams room to focus on higher-impact goals. Poorly applied AI creates extra work; when cleverly integrated into the right systems it delivers the opposite result for a global enterprise. All-in-one platforms with a responsive, adaptable HRIS give lean teams a single place to manage hiring, payroll and compliance. Paired with self-service employee portals and smart automation that handles routine admin in the background, HR can devote time to culture, retention and plans for growth. With foundations like these, small HR teams can scale workforces and create an agile employee experience across every market.
Join the next wave: hyper-global growth is rising now and set to continue. Find out how in the 2025 global workforce report.
By numbers: Key snapshots of the second wave expansion, for global scale and micro HR
Small HR teams are shouldering global responsibilities
Most firms no longer have large HR departments, yet that is not stopping them from managing hiring, payroll and compliance across borders — and often doing so better.
87%
of companies have HR teams with fewer than 10 people
International hiring is becoming the norm
Leaders anticipate most new roles will be filled abroad, showing international hiring is now the norm rather than the exception.
73%
expect more than half of new hires will be international by 2026
Automation is taking on HR’s heavier tasks
AI and automation are becoming embedded in HR operations, streamlining admin and giving teams more capacity for expansion plans, people-centred initiatives and culture.
64%
of routine HR tasks are predicted to be automated by 2026
Compliance is the area where companies most often stumble
Cross-border growth is gaining momentum, but many employers still run into regulatory challenges that slow them down and increase costs.
74%
have faced compliance challenges abroad
$42,000
average cost of each compliance incident
Practical insights from the report
About the scope and data of the survey:
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 findings send a clear signal: leaders are weary of managing multiple systems. Many are actively seeking to replace their HRIS.
In fact, 51% say they’re searching for a new platform at the moment, and another 36% would be open to switching in future for a single, integrated solution that can manage global payroll, compliance and reporting.
The report examines how organisations are handling this transition and defines what “good” looks like.
Employer of Record services have become mainstream, moving beyond niche solutions.
55% of companies operating internationally already use an EOR, and satisfaction is strong, 76% of leaders using EORs report they are satisfied with the model. The report analyses how leaders balance entity setup, contractor strategies and EOR partnerships, and which combinations work best in practice.
Increasingly, contractors are seen as an intentional element of workforce planning rather than a stopgap. 79% of leaders say contractors and freelancers now play a more significant role in their strategy.
Many firms rely on contractors to test new markets, cover niche skills and flex headcount without long-term commitments. The report examines how organisations balance this approach with the realities of compliance and misclassification.
Employees are posing tougher questions about pay. 82% of HR leaders report greater pressure on pay because of cost-of-living increases, while 77% believe that pay transparency will enhance workplace culture. The report examines how leaders are responding to these twin pressures by rethinking pay, retention and global fairness.
It is no surprise that AI is now part of day-to-day HR, though uptake varies. 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 due to fairness concerns, while 27% adopted new tools.
The report highlights where AI is already making an impact, where it is causing problems, and how leaders are approaching governance.
Most companies received employee requests to relocate or to work while travelling within the past year.
80% of leaders reported receiving these requests, so employee mobility has moved beyond the 'edge case' label. 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 won’t stay in one place.
