ADP: HR leaders must understand their span of control to ‘build strong relationships, lead with transparency, and create a resilient workforce’

The use of technology in the workplace is growing, with more decision-makers turning towards tools, such as AI, to deliver better results, faster.

However, new research from ADP – which polled more than 300,000 people at companies with at least 250 employees between January 2019 and May 2025 – shows that although technology is becoming increasingly important in the workforce, the size of tech teams are actually declining. 

In fact, the decrease in team size across all industries remains near pre-pandemic levels, according to the data, with the average team falling from 6.6 people in January 2019 to 5.3 in May 2025. 

So what does this shift mean for HR leaders? In an exclusive conversation with ADP’s Senior Director of HR Amy Freshman, UNLEASH gets the inside track.

Connecting teams with AI

“AI is less of a workplace tool, and more of a workplace teammate,” ADP’s latest Today in Work report states. As a result, businesses are seeing a decline in employees, and a rise in people using AI in their day-to-day work. 

In fact, 36% of knowledge workers report using AI nearly everyday, compared to 12% of skilled and 7% of repetitive workers.

For Freshman, the increase in AI’s use and the decline in team size demonstrates that HR leaders must “rethink how they enable people to ‘do more with less’” – while highlighting that this must come without sacrificing engagement or performance. 

Likewise, smaller teams must be placed to elevate the “importance of human capital”, while “prompting connection and the quality of communication”, which is now becoming “more important than ever.”

She adds: “Rather than viewing leaner teams as an inherent disadvantage, leaders can shift the thinking and see the opportunity for deeper connection with your employees as your organization’s competitive advantage. 

Taking time to know your people, and to understand their goals, motivations, and challenges as an HR leader can ultimately empower them to perform at higher levels.”

Inevitably, this means that job roles and the responsibilities of individual team members are changing, and will continue to do so, to align with business priorities. 

Freshman advises that business leaders and HR should approach these changes with “proactive transparency”, being clear and direct on how employees’ jobs will be impacted, while providing learning and upskilling opportunities where necessary to close skills gaps. 

ADP’s research also highlights that only 17% of employees “strongly agree” that their employer is investing in the skills they need to advance in their careers, reiterating that maintaining transparency about workforce planning and growth opportunities is “essential for business success.”

HR leaders should also promote a “flexible approach to management” with the ability to “pivot based on their span of control or how many direct reports they currently manage.” 

If a leaders’ span of control is too wide, it may be more difficult to develop meaningful relationships with their people, Freshman warns, which may leave workers feeling disconnected. 

On the other hand, if it’s too narrow, leaders may become overextended with tactical work, leaving less time for connection. Leaders should therefore focus on recognizing their “sweet spot” regarding team size to find the right balance.

Concluding, Freshman expresses: “HR leader engagement has a significant impact on their teams. ADP Research’s Today at Work, Issue 1, found that when a team leader is not fully engaged, that their teams are less than 1% fully engaged. But when a team leader is fully engaged, their teams are 65% more likely to follow suit. 

When HR leaders understand their span of control, build strong relationships, and lead with transparency and intention, organizations can create a resilient workforce that thrives even as team sizes shrink.”