2025 global workforce report
Lean HR at global scale: How intentional AI is reshaping the global workforce
Discover findings from over 3,650 HR and business leaders about the growth of lean HR teams. Find out where global hiring is accelerating, which risks are costing companies millions, and how next gen tech 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
- Where global hiring is increasing, and why the majority of new hires are projected to be overseas by 2026
- Playbooks for leaders tackling 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 surges, pioneering automation keeps it manageable
International hiring growth shows no sign of easing, and HR teams are shifting their approach. Teams often smaller than 10 people are managing payroll, compliance and hiring across several countries, with AI and integrated systems at the centre.
Lean teams are now delivering global strategy more intelligently, more quickly and with intuitive workflows, showing that HR’s influence relies on the tools and processes rather than headcount.
In practice, small HR teams are handling the workload of much larger departments and succeeding. They do this by relying on established EOR partnerships while accelerating integration of payroll and HRIS.
Companies that can manage cross-border regulations, contractor classification, and multi-currency payroll intelligently 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 essential
Teams that make genuine progress with new tech tend to use AI with purpose and enough foresight to avoid excess. That reduces background noise and repetitive admin, and frees teams to focus on higher‑value objectives. Misapplied AI multiplies work; when smartly embedded in the right systems it reduces it for global organisations. All-in-one platforms coupled with a responsive, adaptable HRIS provide lean teams with a central workspace to manage hiring, payroll and compliance. When paired with self-service employee portals and intelligent automation that handles routine administration behind the scenes, HR can devote time to culture, retention and growth plans. With these foundations, small HR teams can scale workforces and deliver an agile employee experience across all markets.
Ride the next wave: hyper-global expansion is accelerating now and will keep rising. Discover 'the how' in the 2025 global workforce report
By numbers: Concise snapshots from the second-wave expansion, illustrating global scale and micro HR.
Small HR teams are shouldering responsibilities at a global level
Most companies no longer have large HR departments, but they continue to manage cross-border hiring, payroll and compliance, and frequently do so more effectively.
87%
Of companies, HR teams consist of fewer than 10 people
International hires are becoming the standard
Leaders anticipate most new roles will be staffed overseas, signalling that international hiring is now the norm rather than the exception.
73%
Expect more than half of new hires to be international by 2026
Automation is taking on HR’s heavy lifting
AI and automation are increasingly embedded within HR operations, simplifying administrative tasks and freeing teams to prioritise expansion, people and culture.
64%
Of routine HR tasks are expected to be automated by 2026
Compliance is the area where companies most often stumble
Cross-border expansion is accelerating, yet many employers continue to encounter regulatory hurdles that delay progress and raise costs.
74%
Have faced compliance challenges abroad
$42,000
Average cost of each compliance incident
Actionable takeaways from the report
About the survey scope and dataset:
To compile this dataset, we surveyed 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.
The 2025 findings are clear: leaders are weary of managing multiple systems, and many are actively seeking to replace their HRIS.
In fact, 51% report they are actively searching for a new platform at present, and a further 36% would be open to switching later for a single integrated solution capable of managing global payroll, compliance and reporting.
The report examines how organisations are managing this change and defines what 'good' looks like.
Employer of Record services have moved into the mainstream, leaving the niche solution space.
55% of companies with international hires already use an EOR, and satisfaction levels are strong, 76% of leaders using EORs report they are satisfied with the model. The report breaks down how leaders balance entity setup, contractor usage and EOR relationships, and which combinations are most effective in practice.
Increasingly, contractors are considered a deliberate component of workforce design instead of a stopgap. 79% of leaders say contractors and freelancers now play a more significant role in their strategy.
Many organisations depend on contractors to trial new markets, supply niche skills, and adjust headcount without long-term commitment. The report examines how companies balance this tactic against compliance obligations and the risks of misclassification.
Employees are putting tougher questions to employers about pay. 82% of HR leaders say they face greater pressure on pay because of cost-of-living increases, while 77% believe that pay transparency will improve culture. The report considers how leaders are responding to these twin pressures by rethinking compensation, retention and global fairness.
Not surprisingly, AI is now embedded in routine HR work, although uptake varies. 64% of leaders anticipate that two-thirds of HR’s routine duties will be automated by 2026.
Concurrently, 28% discontinued use of an AI hiring tool due to fairness concerns, while 27% adopted new tools.
The report identifies where AI is delivering value, where it causes problems, and how leaders are establishing governance.
Most companies have received employee requests in the past year to relocate or to work while travelling.
80% of leaders reported getting these requests, so employee mobility is no longer in the 'edge case' camp. HR must plan for it now.
The report examines strategies for work-from-anywhere requests, relocation policies, and payroll and compliance tools for a workforce that won’t remain in one place.
