2025 global workforce report
Lean HR, global scale: intentional AI reshapes the global workforce
Gain perspective from more than 3,650 HR and business leaders about the rise of lean HR teams. Find which regions are seeing faster global hiring, the risks that cost companies millions, and how next‑gen technology and new models help them keep pace.
What to expect inside:
- How AI and an integrated stack for payroll, compliance, and people ops support small HR teams
- Which markets are seeing global hiring surge, and why most new hires are expected to be overseas by 2026
- Practical playbooks for leaders on solving cross-border challenges (from EOR to unified payroll)
Download the report (shared — state of payroll reporting)
Download the report
The next wave: as global hiring expands rapidly, pioneering automation keeps it manageable
The surge in international hiring shows no sign of abating, and HR teams are adjusting their approaches. Teams commonly under 10 people are handling payroll, compliance and hiring across multiple countries, with AI and integrated systems at their core.
Smaller teams now manage global strategy more intelligently and quickly, demonstrating that HR’s influence depends on tools and processes rather than headcount.
In practice, this means small HR teams are delivering work typically done by much larger departments — and succeeding. They do this by relying on existing EOR partnerships while prioritising better integrated payroll and HRIS.
Companies that manage cross-border regulations, contractor classification, and multi-currency payroll effectively can avoid risk and moving into new markets faster.
“The first wave of HR technology enabled global hiring. The next wave is changing how those teams are led. Beyond providing standard HR ops, AI is evolving into the operating system for how companies run a global workforce.”
Job van der Voort, CEO & co-founder, Remote.
Intentional AI and intuitive automation lead the way
Teams making real progress with new tools apply AI with clear intent and restraint. That reduces noise and repetitive administration, freeing teams to focus on higher‑impact goals. Misapplied AI adds work; well‑designed AI embedded in the right systems simplifies operations for a global enterprise. All‑in‑one platforms with a responsive, adaptable HRIS give lean teams a single dashboard to manage hiring, payroll and compliance. Paired with self‑service employee portals and intelligent automation that handles routine admin, HR can prioritise culture, retention and growth planning. With these foundations, small HR teams can scale headcount and deliver an agile employee experience across all markets.
By numbers: snapshots of the second‑wave expansion metrics for global scale and micro HR
Small HR teams are carrying global responsibilities
Most organisations no longer have large HR departments, yet they continue to manage hiring, payroll and compliance across borders—often more effectively.
87%
of companies operate with HR teams smaller than 10 people
International hires are becoming the default
Leaders anticipate most new positions will be staffed overseas, indicating that international hiring is now standard rather than exceptional.
73%
expect more than half of new hires to be international by 2026
Automation is shouldering HR’s heavy lifting
AI and automation are moving into the background of HR operations, streamlining administration and freeing teams to focus on expansion, people and culture.
64%
are projected to be automated by 2026
Compliance is the area where companies most often stumble
Cross‑border growth continues apace, but many employers still face regulatory hurdles that delay expansion and increase costs.
74%
have encountered compliance challenges overseas
$42,000 USD
average cost per compliance incident
Actionable insights 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 signal from the 2025 data: leaders are frustrated by juggling multiple systems. Many are actively looking to replace their HRIS.
Actually, 51% say they are searching for a new platform now, and a further 36% would consider switching later, in favour of a single, integrated solution that can handle global payroll, compliance and reporting.
The report examines how organisations are approaching this change and what 'good' looks like.
Employer of Record services have moved into the mainstream, leaving the niche solution space.
55% of companies employing internationally already use an EOR, and satisfaction levels are high, 76% of leaders using EORs say they are satisfied with the model. The report unpacks how leaders are weighing entity setup, contractor use, and EOR partnerships, and what mix works best in practice.
More often, contractors are treated as a deliberate element of workforce design rather than a fallback. 79% of leaders say contractors and freelancers have become a more important part of their strategy.
Many organisations rely on contractors to test new markets, access niche skills and flex headcount without long‑term risk. The report examines how companies balance this approach with compliance realities and misclassification risks.
Employees are asking tougher questions about pay. 82% of HR leaders report increased pressure on pay from cost‑of‑living rises, while 77% believe pay transparency will improve culture. The report looks at how leaders are responding to these twin pressures by rethinking compensation, retention, and global fairness.e report looks at how leaders are responding to these twin pressures by rethinking compensation, retention, and global fairness.
Unsurprisingly, AI is now embedded in day‑to‑day HR, though adoption varies. 64% of leaders expect two‑thirds of HR’s routine tasks to be automated by 2026.
At the same time, 28% stopped using an AI hiring tool due to fairness concerns, while 27% adopted new ones.
The report highlights where AI is delivering benefits, where it is causing problems, and how leaders are approaching governance.
Most companies have received employee requests to relocate or to work while travelling in 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 will not remain in one location.
