As the Aug. 1 deadline for the Trump administration’s trade deals approaches, many global HR leaders are reassessing whether their contingent workforce can withstand potential tariff shocks. To stay agile, HR leaders can use technology to support quick sourcing shifts if trade ties weaken, according to one expert.

For HR, this deadline isn’t just about trade policy—how an organization manages it will reflect the resilience of its global workforce strategy. And uncertainty around contingent workforce durability will affect many HR leaders; data from MIT Sloan Management Review and Deloitte shows that 93% of global managers consider both internal and external workers essential to their operations.

There’s growing evidence that more organizations are adjusting their workforce models—both in response to current shifts and in preparation for future disruption. According to Deloitte’s 2025 Global Human Capital Trends report, “Many organizations have shifted to leaner, flatter structures with fewer managers and more contingent workers.”

This raises a critical question: Are the organization’s contractors clustered in regions that could become economically isolated or too costly overnight due to trade changes?

Divergent responses to tariff uncertainty

Global companies are responding to this uncertainty in different ways. Many have adopted a wait-and-see approach that may be counterproductive, experts say. Research from consultancy i4cp found that among 300+ professionals surveyed, 34% said their organizations had paused projects due to ongoing uncertainty, while another 23% reported canceling them altogether.

“Over the past few months, many organizations have attempted to gain control by delaying projects and pausing hiring until they gain clarity on global trade,” says Chad Lane, SVP operations and general manager of global workforce solutions at payroll platform Papaya Global. While this reaction is natural when facing instability, Lane notes it often slows business operations unnecessarily.

Forward-thinking HR teams are taking a different approach, he says. Rather than freezing operations, they’re investing in technology that drives efficiency in contingent workforce management and payments. They’re also “diversifying their talent footprint across regions,” he notes, to reduce exposure to trade risk.

Other organizations are “increasingly paying premiums to secure contractors in geopolitically stable regions, while shunning lower cost but tariff-sensitive markets,” Lane says.

Concerns about how tariff adjustments will impact contingent workforces are widespread. A June 2025 McKinsey Global Survey of nearly 900 professionals in 77 countries shows rising concern over trade volatility, with respondents citing trade policy changes as the top threat to both global and company growth.

“Leaders are increasingly establishing backup plans by maintaining agile contractor pools across multiple regions so they can rapidly shift sourcing if trade ties deteriorate,” Lane says.

A technology solution?

Research firm i4cp also found that 37% of organizations are considering changes to their workforce planning overall. For these companies, Lane recommends integrated HR technology platforms that “provide real-time visibility into regional rate cards, compliance flags and workforce performance.”

Such integrated platforms are better equipped to handle global workforce complexities than disconnected tools, he says. A unified system also streamlines sourcing, hiring, payments and compliance.

These platforms offer centralized budget visibility, enabling faster decisions and better labor planning. They also allow companies to shift sourcing while maintaining consistent onboarding and local compliance, Lane says.

The right technology, he says, brings agility and control, helping businesses manage contractor risks and reduce legal exposure. It also simplifies invoicing and reduces delays tied to cross-border issues.

Read more: Data on contingent talent is changing the game for HR leaders

Contingent workforce pitfalls

As contractor networks expand globally, HR faces growing compliance pressure. Lane points to worker classification as the top risk. Definitions of “contractor” versus “employee” vary widely, for example, and mistakes can lead to fines, back taxes and legal problems.

Other compliance concerns include payroll and tax rules that differ by country, and disconnected systems that complicate consistency, increasing audit risk. Cross-border data handling adds further complexity due to strict privacy and IP regulations. And labor laws change frequently. Lane stresses that compliance requires constant monitoring and real-time updates.

Supporting a global contingent workforce is no longer optional, Lane says. The ability to manage it effectively “at scale is a major competitive edge” for companies navigating uncertainty and seeking growth.

By using the right technology, “organizations can quickly pivot to ‘friend-shore’ alternatives,” he says, reducing exposure to trade-related disruptions while avoiding costly setbacks.