2025 global workforce report
Lean HR, global scale: How deliberate AI is reshaping the global workforce
Explore findings from more than 3,650 HR and business leaders about the growth of lean HR teams. See where international hiring is accelerating, which risks are costing firms millions, and how next‑generation technology and new models help them keep pace.
What to expect inside:
- How AI and an integrated stack for payroll, compliance and people ops serve small HR teams
- Where international hiring is surging, and why leaders expect most new hires to be overseas by 2026
- Practical playbooks for leaders on resolving cross-border challenges (from EOR to unified payroll)
Download the report (state of payroll reports – shared)
Download the report
The next wave: As international hiring expands, pioneering automation keeps it manageable
International hiring continues to accelerate, and HR teams are adapting in new ways. Teams often smaller than 10 people are handling payroll, compliance and recruitment across several countries, centred on AI and integrated systems.
Compact teams now manage global strategy more intelligently, quickly and intuitively, showing that HR’s influence depends on tools and processes rather than headcount.
In practical terms, this means small HR teams are carrying out the work of much larger departments and succeeding. This comes from relying on existing EOR partnerships while pushing for better-integrated payroll and HRIS.
Companies that manage cross-border regulations, contractor classification and multi-currency payroll intelligently can avoid risk and move into new markets faster.
“The first wave of HR technology enabled global hiring. The next phase is changing how those teams are led. Beyond standard HR ops, AI is becoming the operating system for managing a global workforce.”
Job van der Voort, CEO & co-founder, Remote.
Intentional AI and intuitive automation lead the way
Teams that are genuinely advancing with new tools use AI deliberately, applying enough foresight to avoid excess. That cuts noise and repetitive administration, freeing teams to focus on higher‑impact objectives. Poorly applied AI creates more work; thoughtfully embedded AI in the right systems does the opposite for a global enterprise. All‑in‑one platforms with a responsive, adaptable HRIS give lean teams a central place to manage hiring, payroll and compliance. Combined with self‑service employee portals and intelligent automation that handles routine administration behind the scenes, HR can spend more time on culture, retention and growth plans. With such foundations, small HR teams can scale their workforces and deliver an agile employee experience across every market.
By the numbers: snapshots of second‑wave expansion statistics for global scale and micro HR
Small HR teams are shouldering global responsibility
Most firms no longer have large HR departments, yet that does not prevent them from managing hiring, payroll and compliance across borders — and often doing so better.
87%
Of companies report HR teams of fewer than 10 people
International hires are becoming the norm
Leaders anticipate most new positions will be filled overseas, indicating international hiring is now the default rather than the exception.
73%
Expect more than half of new hires will be international by 2026
Automation is taking on HR’s heavy lifting
AI and automation are becoming embedded in HR operations, streamlining administration and giving teams more capacity for expansion, people‑centred work and culture.
64%
Of routine HR tasks are expected to be automated by 2026
Compliance is where companies most often stumble
Cross‑border growth is strong, but many employers still face regulatory challenges that slow progress and raise costs.
74%
Have encountered compliance challenges abroad
$42,000
Average cost of each compliance incident
Actionable insights within the report
About the survey scope and the 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.
A clear message from the 2025 data: leaders are tired of juggling multiple systems, and many are actively searching to replace their HRIS.
In fact, 51% say they are looking for a new platform at present, while 36% would consider changing in future in return for a single integrated solution capable of managing global payroll, compliance and reporting.
The report examines how companies are making this transition and what ‘good’ looks like.
Employer of Record services have become mainstream, moving beyond the niche solution space.
55% of companies with international employees already use an EOR, and satisfaction rates are strong, 76% of leaders using EORs report they are satisfied with the model. The report unpacks how leaders are weighing entity setup, contractor use and EOR partnerships, and which mixes work best in practice.
Increasingly, contractors are seen as a deliberate element of workforce design rather than a fallback. 79% Of leaders say contractors and freelancers have become a more significant element of their strategy.
Many companies rely on contractors to test new markets, access niche skills and flex headcount without long‑term risk. The report examines how firms balance this approach with compliance realities and the risk of misclassification.
Employees are asking tougher questions about pay. 82% of HR leaders report increased pressure on pay because of cost‑of‑living rises, while 77% believe pay transparency will strengthen 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 everyday HR, although adoption varies. 64% of leaders expect two‑thirds of routine HR tasks to be automated by 2026.
Meanwhile, 28% discontinued an AI hiring tool over fairness concerns, while 27% adopted new tools.
The report highlights where AI is making a difference, where it is backfiring and how leaders are approaching governance.
Most companies have had employees request to relocate or to work while travelling in the past year.
80% of leaders reported receiving such requests, so employee mobility is no longer an 'edge case'. HR needs to 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 one location.
