2025 global workforce report
Lean HR at global scale: intentional AI reshapes the global workforce
Insights from over 3,650 HR and business leaders reveal the rise of lean HR teams. See which regions are experiencing faster global hiring, the risks costing companies millions, and how next-gen tech and new operating models help them keep pace.
What to expect inside:
- How AI and an integrated stack for payroll, compliance, and people ops fit small HR teams
- Which regions are seeing surges in global hiring, and why most new hires are projected to be overseas by 2026
- Playbooks for leaders on resolving cross-border challenges (from EOR to unified payroll)
Download the report (shared — consolidated insights into the state of payroll reports)
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The next wave: how automation makes a global hiring surge manageable
The surge in international hiring is not slowing down, and HR teams are adapting in novel ways. Departments that are often fewer than 10 people are managing payroll, compliance, and hiring across multiple countries with AI and integrated systems at their core.
Smaller teams are now executing global strategy more intelligently, faster, and with better intuition, demonstrating that HR’s impact is not measured by headcount but by the tools and processes deployed.
In practice, this means small HR teams perform the work of much larger ones and consistently deliver. They do so by leaning on EOR partnerships already in use, while accelerating the shift to tighter integration between payroll and HRIS.
Companies that can manage cross-border regulations, contractor classification, and multi-currency payroll the smart way 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 where it's at
Teams that are making real progress with new tools apply AI deliberately, exercising enough judgment to avoid excess. That reduces noise and repetitive admin, and gives teams room to pursue higher-impact goals. Poorly applied AI creates more work; when AI is smartly integrated into the right systems, it does the opposite 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 intelligent automation that handles routine admin in the background, HR can focus on culture, retention, and growth planning. 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 rising now and will continue. Tap into 'the how' with the 2025 Global Workforce Report
By numbers: Essential snapshots of the second-wave expansion for global scale and micro HR
Small HR teams are shouldering global responsibilities
Most companies no longer have large HR departments, but they still manage hiring, payroll, and cross-border compliance — and often do it better.
87%
of companies have HR teams staffed with fewer than 10 people
International hires are now the default approach
Leaders expect most new roles to be filled overseas, indicating international hiring is now the norm rather than the exception.
73%
expect that more than half of new hires will be international by 2026
Automation is handling HR’s heavy lifting
AI and automation are becoming embedded in HR operations, simplifying administrative work and freeing teams to focus on expansion, people, and culture.
64%
of routine HR tasks are projected to be automated by 2026
Compliance causes the most difficulties for companies
Cross-border expansion is continuing, yet many employers still encounter regulatory hurdles that slow progress and increase costs.
74%
have encountered compliance challenges abroad
$42,000
average cost for each compliance incident
Actionable insights you can use from the report
About the survey coverage and data:
We compiled this dataset by surveying 3,650 HR and business leaders (director level and above) in the USA, UK, Germany, France, Spain, the Netherlands, Spain, Sweden, Australia, Singapore and South Korea.
A clear signal from the 2025 data: leaders are fed up with managing multiple systems. Many are actively looking to replace their HRIS.
In fact, 51% say they are searching for a new platform now, and another 36% would consider switching later, in return for a single, integrated solution that can handle global payroll, compliance, and reporting.
The report examines how companies are managing this shift and what “good” looks like.
Employer of Record services have become mainstream, moving beyond the niche solution space.
55% of companies operating internationally already use an EOR, and satisfaction is strong, 76% of leaders using EORs say they’re happy with the model. The report details how leaders weigh entity setup, contractor use, and EOR partnerships, and which mix works best in practice.
Increasingly, contractors are seen as a deliberate element of workforce design, not merely a fallback. 79% of leaders report that contractors and freelancers have grown more central to their strategy.
Many companies rely on them to test new markets, supply niche skills, and flex headcount without long-term commitments. The report examines how companies balance this approach with the realities of compliance and misclassification.
Employees are raising tougher questions about pay. 82% of HR leaders report greater pressure on pay from cost-of-living increases, while 77% believe pay transparency will improve culture. The report examines how leaders are adapting to these twin pressures by rethinking compensation, retention, and global fairness.
Not surprisingly, AI is now part of day-to-day HR, but adoption varies. 64% of leaders expect two-thirds of HR’s routine tasks to 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 delivering results, where it is backfiring, and how leaders are approaching governance.
Most companies have received employee requests to relocate or work while traveling during the past year.
80% of leaders reported receiving these 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, plus payroll and compliance tools for a workforce that won't stay in one place.
