CFOs wary of global hiring as compliance losses rise

Safeguard Global has published research showing that every Chief Financial Officer surveyed had incurred losses from non-compliance when hiring internationally. The study points to a sharp gap between stated interest in overseas recruitment and actual hiring plans.

The survey of 400 CFOs in the UK and US found that 97% were interested in global hiring and 96% believed their organisation was prepared to hire workers abroad. Yet only 22% said their business planned to hire globally in the next six months, while 37% said their organisation was prioritising domestic hiring over international recruitment, reducing cross-border hiring, or both.

The findings come as employers face a stricter compliance environment in the UK, with the Employment Rights Act being introduced in stages. Measures including day-one unfair dismissal rights, a new Fair Work Agency, and tighter redundancy rules add to the regulatory burden for finance leaders already managing hiring across multiple jurisdictions.

Non-compliance costs appear to be a central reason for that caution. The research found that 78% of CFOs reported losses of up to USD $1 million linked to non-compliance when expanding globally, while 22% said losses exceeded USD $1 million.

Among UK respondents, 86% said their organisations had lost up to USD $1 million and 14% reported losses above that level. In the US, 70% reported losses of up to USD $1 million and 30% said losses had exceeded USD $1 million.

The data suggests a marked disconnect between confidence and execution. CFOs are closely involved in overseas hiring decisions, with two-thirds taking part in all final decisions and 79% identifying cost savings as the most important metric when hiring globally.

That focus on cost control may be contributing to risk when companies enter unfamiliar labour markets. The report identified several operational pressure points that make expansion harder, including making a first hire in a new country, testing recruitment in a market before committing to a broader presence, managing workforce changes after acquisitions or restructurings, supporting short-term or seasonal hiring across borders, and reviewing overseas employment arrangements because of compliance concerns.

Geopolitical pressure

Compliance is not the only issue shaping hiring decisions. The survey found that geopolitical disruption has also led finance chiefs to scale back or reconsider international workforce plans.

Two in five CFOs said geopolitical disruption had made their organisation more cautious about hiring globally. More than a third said it had hindered their company's ability to expand.

Businesses have also had to adjust budgets and staffing plans in response. The research found that 38% increased budgets to support employee relocation, 36% delayed or reduced hiring in affected regions, and 36% increased contingency or buffer budgets. Nearly one in five said an existing employee had been relocated to another country because of geopolitical conflict during the past 12 months.

For UK employers, those pressures are layered on top of a domestic labour framework that is becoming more demanding. Finance leaders weighing overseas recruitment now face the dual challenge of keeping up with UK reforms while also understanding payroll, employment, and benefits rules in other markets.

Confidence gap

The survey results point to a contradiction in how CFOs view international recruitment. Many finance chiefs say they are ready to pursue overseas talent, but far fewer are willing to commit capital and hiring plans to that strategy.

The research suggests CFOs believe stronger practical support would improve their ability to manage global hiring. The most common responses were help with local contracts, payroll, or benefits; clear country-specific compliance guidance; and faster onboarding timelines.

Florence Cazemajou-Flint, Chief Financial Officer at Safeguard Global, commented on the findings.

"The challenges CFOs face in managing global hiring - from both inside and outside their organizations - are only becoming more complex. While they're confident in their ability to manage cross-border hiring and capitalize on global opportunities, many may underestimate the resources needed to navigate the realities of international employment," said Florence Cazemajou-Flint, Chief Financial Officer, Safeguard Global.

"That's the CFO confidence paradox in a nutshell: confidence is high, but execution remains difficult. To bridge the gap, CFOs need more than confidence - they need the right support to simplify compliance, reduce risk, and scale global hiring with certainty," Cazemajou-Flint added.

The survey was conducted by Censuswide and commissioned by Safeguard Global, covering 400 CFOs across the UK and US.