Global Workforce Report 2025
Lean HR at global scale: Intentional AI shifts the global workforce
Gain findings from more than 3,650 HR and business leaders about the emergence of lean HR teams. See which regions are registering faster global hiring, pinpoint the risks that are costing companies millions, and examine how next-generation 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 serve small HR teams
- Which regions are seeing surges in global hiring, and why most new hires are expected to be overseas by 2026
- Playbooks for leaders to tackle cross-border challenges (from EOR to unified payroll)
Download the report (shared — overview of the state of payroll reports)
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The next wave: how automation keeps global hiring manageable as it expands
The surge in international hiring shows no sign of abating, and HR teams are evolving their approaches. Teams often with fewer than 10 people are handling payroll, compliance and hiring across multiple countries, with AI and integrated systems at the centre of operations.
Smaller teams are now executing global strategy more intelligently, swiftly and intuitively, demonstrating that HR’s influence is determined not by headcount but by the tools and processes deployed.
In practice, this means small HR teams are performing the work of much larger departments — and succeeding. They do this by relying on existing EOR partnerships while pushing for tighter integration between payroll and HRIS.
Companies that manage cross-border regulations, contractor classification and multi-currency payroll sensibly can avoid risk and moving into new markets faster.
“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 central
Teams that are truly advancing with new tools apply AI deliberately, exercising sufficient foresight to avoid excess. That approach removes noise and repetitive administrative tasks, creating headroom for higher-impact objectives. Poorly applied AI multiplies work; when thoughtfully embedded in the right systems, AI reduces it for a global enterprise. All-in-one platforms with a responsive, adaptable HRIS provide lean teams with a single hub to manage hiring, payroll and compliance. Combined with self-service employee portals and intelligent automation that handles routine administration behind the scenes, HR can focus on culture, retention and growth plans. With these foundations, small HR teams can scale workforces and deliver an agile employee experience across every market.
Move with the next wave: hyper-global growth is accelerating now and set to continue. Explore the practical 'how' in the 2025 global workforce report
By numbers: Brief snapshots of the second wave expansion stats, illustrating global scale and micro HR
Small HR teams are shouldering global responsibilities
Most companies no longer maintain large HR departments, yet they continue to manage hiring, payroll and compliance across borders — and frequently do so more effectively.
87%
of companies report HR teams numbering fewer than 10 people
International hires are fast becoming the default option
Leaders expect most new roles to be filled overseas, indicating that international hiring has become the norm rather than the exception.
73%
expect that by 2026 more than half of new hires will be international
Automation is assuming HR's heavy lifting
AI and automation are being embedded in HR operations, streamlining administration and providing teams with greater bandwidth for expansion plans, people focus and culture.
64%
of routine HR tasks are projected to be automated by 2026
Compliance is the area where companies most often stumble
Cross-border growth remains strong, yet many employers continue to encounter regulatory hurdles that slow progress and increase costs.
74%
have encountered compliance challenges abroad
$42,000
average cost associated with each compliance incident
Actionable insights contained in the report
Overview of the survey scope and dataset:
To compile this dataset, we interviewed 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 data deliver a clear signal: leaders are weary of juggling multiple systems. Many are actively seeking to replace their HRIS.
In fact, 51% report they are currently searching for a new platform, and a further 36% would consider switching later, for a single, integrated solution capable of managing global payroll, compliance, and reporting.
The report examines how organisations are approaching this transition and what “good” looks like.
Employer of Record services have become mainstream, moving beyond niche solution territory.
55% of companies that employ internationally already rely on an EOR, and overall satisfaction is strong, 76% of leaders using EORs report they are satisfied with the model. The report analyses how leaders balance entity establishment, contractor engagement and EOR partnerships, and which combinations are most effective in practice.
Increasingly, contractors are treated as a deliberate element of workforce design, not merely a fallback. 79% of leaders state that contractors and freelancers now play a more significant role in their strategy.
Numerous companies depend on contractors to pilot new markets, supply specialised skills, and adjust headcount flexibly without long-term commitments. The report examines how organisations balance this tactic with compliance demands and the risk of misclassification.
Employees are putting pay under closer scrutiny. 82% of HR leaders report greater pressure on pay because of cost-of-living increases, while 77% believe pay transparency will enhance culture. The report considers how leaders are addressing these twin pressures by revising compensation, retention strategies and global fairness.
Notably, AI is now embedded in everyday HR, though uptake is patchy. 64% of leaders forecast that two-thirds of HR’s routine tasks will be automated by 2026.
Concurrently, 28% stopped using an AI hiring tool because of fairness concerns, while 27% adopted new ones.
The report highlights where AI is already making an impact, where it is backfiring, and how leaders are approaching governance.
Most companies have received employee requests to relocate or work while travelling over the past year.
80% of leaders reported receiving such requests, meaning employee mobility is no longer an 'edge case'. HR should plan for it 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.
