2025 global workforce report
Lean HR, global scale: How intentional AI is reshaping the global workforce
Explore findings from more than 3,650 HR and business leaders about the growth of lean HR teams. See where global hiring is accelerating, which risks are costing companies millions, and how next‑generation 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 surging and why leaders expect most new hires to be overseas by 2026
- Playbooks for leaders to solve cross-border challenges (from EOR to unified payroll)
Download the report (shared – state of payroll reporting)
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The next wave: As global hiring expands rapidly, pioneering automation keeps it manageable
International hiring is still accelerating, and HR teams are changing how they operate. Teams of fewer than 10 people are now handling payroll, compliance and recruitment across several countries, with AI and integrated systems at their core.
Smaller teams are now executing global strategy more intelligently and quickly, showing that HR's influence depends on tools and processes rather than headcount.
In practice, small HR teams are achieving what larger departments once did. They rely on existing EOR partnerships while driving for tighter integration between payroll and HRIS.
Companies that manage cross-border regulations, contractor classification, and multi-currency payroll smartly can avoid risk and moving into new markets faster.
“The initial wave of HR technology enabled global hiring. The following wave is changing how teams are overseen. Beyond standard HR ops support, AI is evolving into the operating system for managing a global workforce.”
Job van der Voort, CEO & co-founder, Remote.
Intentional AI and intuitive automation lead the way
Teams that progress quickly with new tools apply AI deliberately, with enough foresight to avoid excess. That reduces noise and repetitive administration, freeing teams to focus on higher‑impact objectives. Misapplied AI increases workload; well‑designed AI embedded in the right systems delivers the reverse for a global business. All-in-one platforms with a responsive, adaptable HRIS provide lean teams a central hub for hiring, payroll and compliance. Combined with self‑service employee portals and smart automation that handles routine tasks in the background, 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 all markets.
By numbers: Snapshot statistics from the second-wave expansion for global scale and micro HR
Small HR teams are bearing the burden of global operations
Many companies no longer have large HR departments, yet they still manage hiring, payroll and compliance across borders — often more effectively.
87%
of companies report HR teams with fewer than 10 people
International hires are becoming the norm
Leaders anticipate most new roles will be filled overseas, indicating international hiring is the standard rather than an exception.
73%
expect that more than half of new hires will be international by 2026
Automation is taking on HR's heavy lifting
AI and automation are moving into the background of HR operations, streamlining administration and giving teams more capacity for expansion plans, people priorities and culture.
64%
of routine HR tasks are expected to be automated by 2026
Compliance is where companies most often stumble
Cross-border growth continues, but many employers still encounter regulatory challenges that slow progress and increase costs.
74%
have experienced compliance challenges abroad
$42,000
average cost of each compliance incident
Actionable insights in the report
About the survey scope and data:
To compile these data, 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 is that leaders are tired of juggling multiple systems. Many are actively seeking to replace their HRIS.
In fact, 51% say they are searching for a new platform right now, and another 36% would consider switching in the future, in exchange for a single, integrated solution that can handle global payroll, compliance, and reporting.
The report examines how companies approach this shift and what “good” looks like.
Employer of Record services have become mainstream, moving out of the niche solution space.
55% of companies that employ internationally already use an EOR, and satisfaction levels are high, 76% of leaders using EORs report they are satisfied 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 planned element of workforce design rather than a fallback. 79% of leaders say contractors and freelancers are now a more important part of their strategy.
Many companies use them to test new markets, access niche skills and flex headcount without long‑term risk. The report examines how businesses balance this approach with compliance realities and the risk of misclassification.
Employees are raising tougher questions about pay. 82% of HR leaders report increased pressure on pay because of cost‑of‑living rises, while 77% believe greater pay transparency will improve culture. The report examines how leaders respond to these dual pressures by rethinking compensation, retention, and global fairness.
Unsurprisingly, AI is now part of everyday HR, although 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 already making a difference, where it is backfiring, and how leaders approach 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 is no longer an 'edge case'. 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 stay in one place.
