As global expansion becomes essential for staying competitive, organizations are increasingly tapping into international talent pools. For HR leaders managing these distributed workforces across multiple markets, there are a host of challenges, especially in an unpredictable macroeconomic and geopolitical environment.
For The Global Atlas: Challenges, Strategies, and Solutions for HR Leaders in 2025, we spoke to HR leaders across North America, the UK, Ireland and continental Europe about their evolving priorities and concerns in this shifting landscape.
A clear picture emerged of the pressures facing HR professionals today—from managing distributed teams and complex compliance to maintaining resilience amid economic and political uncertainty—and the strategies they use to address them.
1. Compliance in a shifting landscape (and why AI can’t fix it)
For 86% of HR leaders, international labor law compliance is the biggest challenge of managing a global workforce. And, over half (51%) of those working (or planning to work) with external advisors seek guidance on market entry and compliance. These statistics show navigating complex legal landscapes remains a significant hurdle, whether a company is already operating abroad or planning its first international expansion.
Given these complexities, the use of generative AI tools to research aspects of international workforce management is a tempting shortcut. Indeed, 95% of respondents reported using AI to research international laws, benefits or talent benchmarks, while most also plan to leverage AI for employment law and market-specific HR policy research.
However, relying solely on AI for legal and compliance insights is a risky strategy, because compliance is far more than a box-ticking exercise. While these tools may provide quick and apparently confident answers, they often lack accuracy, context and nuance, potentially leading to costly regulatory errors.
Whilst AI research might have its place to provide a basic background understanding, ultimately expert advisory services that align legal, tax and regulatory requirements with their client's strategic goals will best serve visionary companies seeking to expand into new markets.
2. Navigating economic and geopolitical instability
HR leaders are under pressure to rethink traditional global workforce structures. 83% of organizations named navigating geopolitical and economic unpredictability as an expected key challenge to their growth ambitions. Paired with the previous statistics, this confirms to us that rising geopolitical tensions and unpredictable macroeconomic conditions, and international compliance, are both top of mind for HR leaders.
For HR leaders, building agility into global workforce strategies — with support from experienced partners — is essential to navigating this evolving landscape with confidence. We know from experience that companies are increasingly turning to external expertise and flexible workforce models to help them manage uncertainty without stalling growth.
Employer of Record (EOR) solutions allow organizations to scale their international presence up or down as needed, while embedded workforce intelligence helps turn moments of volatility into long-term opportunity and resilience.
3. The talent-cost balancing act
As the global race for talent intensifies, organizations walk a tightrope between accessing the specialized skills they need and maintaining cost efficiency. Given this, HR leaders see the dual value of international hiring: accessing in-demand skills, and benefiting from cost savings in regions with lower employment costs.
Yet this access to talent and these cost savings can quickly be offset by the high cost of setting up and maintaining owned entities. Recognizing this, 31% of HR leaders in companies with existing global teams say they plan to explore alternative employment models — like EOR solutions.
For 52% of those HR leaders, the cost of operating legal entities is one of the top reasons for considering a change, followed closely by regulatory and compliance complexity, because alternative employment models (like EOR solutions) offer them a bundled solution to efficiently access talent and compliance intelligence.
Practical tips for building a flexible workforce strategy
If your organization is spending resources navigating the challenges of global expansion, a flexible, scalable workforce strategy can help you weather any ups and downs.
Rethinking the traditional, rigid approach to global hiring is key. By partnering with an EOR, organizations can sidestep the complexities and costs of setting up legal entities, while still building competitive, compliant and high-performing teams. Atlas has experience supporting global expansion in over 160 countries, helping companies scale faster and smarter.
Other benefits of an EOR include:
Save time and reduce costs: From localized onboarding to simplified payroll processing, Atlas can help you get to market 90% faster than setting up an entity while minimizing overheads.
Stay compliant: One of the core benefits of an EOR is mitigating risk in your expansion countries. At Atlas, it's our job to prioritize robust compliance frameworks that ensure our clients operate confidently across borders.
Simplify global operations: Opt for an EOR with a centralized ISO27001 certified HRIS platform, giving you visibility and control over your global workforce from one secure place.
Rely on proven expertise: Unlike AI tools that can offer false or misleading information, Atlas’ in-market experts provide accurate, real-time and localized support and tailored insights.
See how HR leaders across North America, the UK, Ireland and rest of Europe are tackling global workforce challenges
As the pioneering Employer of Record, Atlas understands how the world of work is changing and how to best access and manage global teams to build a competitive advantage. We compiled the Global Atlas Report 2025 to capture the insights of 138 senior HR leaders, all of whom work for companies with an international workforce presence (or with intent to build one).
Download the report to learn how respondents are accessing and managing global talent, as well as to gain actionable insights to apply to your own hiring strategies.