2025 global workforce report
Lean HR, global scale: intentional AI moves the global workforce
Discover findings from more than 3,650 HR and business leaders on the rise of lean HR teams. See which regions are accelerating global hiring, the risks costing firms millions, and how next‑generation technology and new operating models help them keep pace.
Here is what you will find inside:
- How AI and an integrated stack for payroll, compliance, and people ops supports small HR teams
- Which regions are seeing surges in global hiring, and why most new hires are expected to be overseas by 2026
- Practical playbooks for leaders on resolving cross-border challenges (from EOR to unified payroll)
Download the report (shared — overview of the state of payroll reports)
Download the report
The next wave: as global hiring expands rapidly, pioneering automation is what keeps it manageable
The uptick in international hiring shows no sign of abating, and HR teams are adapting in new ways. Teams commonly under 10 people now manage payroll, compliance, and hiring across several countries with AI and integrated systems at the core.
Smaller teams are now executing global strategy more intelligently, faster and intuitively, demonstrating that HR’s influence is determined more by the tools and processes in place than by headcount.
In practical terms, small HR teams are taking on work normally handled by much larger departments — and they are succeeding. This is enabled by leveraging 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 initial wave of HR technology made global hiring possible. The next wave is changing how those teams are governed. Beyond providing standard HR ops support, 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 central to effective HR
Teams that are making genuine progress with new tools apply AI deliberately, exercising enough foresight to avoid excess. That reduces noise and repetitive admin, and frees teams to focus on higher‑value objectives. Poorly applied AI increases work; intelligently embedded AI within the right systems does the opposite for global organisations. All‑in‑one platforms featuring a responsive, adaptable HRIS provide lean teams with a single place to manage hiring, payroll and compliance. When combined with self‑service employee portals and smart automation that handles routine admin in the background, HR can dedicate time to culture, retention and growth planning. With these foundations, small HR teams can scale workforces and deliver an agile employee experience across every market.
By the numbers: snapshots of second‑wave expansion metrics for global scale and micro HR
Small HR teams are shouldering global responsibilities
Many companies no longer maintain large HR departments, yet they continue to manage hiring, payroll and compliance across borders — and often more effectively.
87%
of companies report HR teams with fewer than 10 people
International hiring has become the norm
Leaders anticipate most new roles will be filled overseas, indicating international hiring is now standard rather than the exception.
73%
expect over half of new hires to be international by 2026
Automation is assuming HR’s heavy lifting
AI and automation are being embedded into HR operations, streamlining administration and giving teams more capacity for expansion plans, people focus and culture.
64%
of routine HR tasks are projected to be automated by 2026
Compliance is where companies most often stumble
Cross-border growth remains strong, yet many employers still encounter regulatory challenges that slow progress and increase costs.
74%
have encountered compliance challenges overseas
$42,000
average cost of each compliance incident
Actionable insights contained in the report
About the survey scope and 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 fatigued from juggling multiple systems. Many are actively seeking to replace their HRIS.
In fact, 51% report they are actively searching for a new platform right now, while a further 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 approaching this shift and what 'good' looks like.
Employer of Record services have entered the mainstream, moving beyond niche solution territory.
55% of companies with international employees already use an EOR, and satisfaction is high, 76% of leaders using EORs report they are satisfied with the model. The report analyses how leaders are weighing entity setup, contractor use and EOR partnerships, and which mix works best in practice.
Increasingly, contractors are regarded as a planned part of workforce design rather than a fallback. 79% of leaders say contractors and freelancers have become a more important part of their strategy.
Many companies rely on contractors to test new markets, cover niche skills and flex headcount without long‑term risk. The report explores how organisations balance this approach with the realities of compliance and misclassification.
Employees are posing tougher questions about pay. 82% of HR leaders indicate increased pressure on pay owing to cost‑of‑living rises, while 77% believe pay transparency will benefit 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, though adoption remains uneven. 64% of leaders expect two‑thirds of HR’s routine tasks to be automated by 2026.
Meanwhile, 28% discontinued an AI hiring tool over fairness concerns, while 27% adopted new ones.
The report highlights where AI is already delivering benefits, where it is proving problematic, and how leaders are approaching governance.
A majority of companies have received employee requests 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 must plan for this now.
The report examines strategies for work‑from‑anywhere requests, relocation policies and the payroll and compliance tools needed for a workforce that will not remain in one place.
