CFOs say they are ready for global hiring, but many still view compliance as a costly barrier on the road to expansion.

New research released by workforce solutions provider Safeguard Global shows that every CFO surveyed estimated their organization has lost money due to compliance risks during cross-border expansion. More than one in five respondents estimated such losses exceed $1 million.

The research is based on a survey of 400 CFOs in the UK and US conducted by Censuswide on behalf of Safeguard Global from June 5 to 12.

Although the report describes the results as losses caused by "non-compliance," Safeguard Global said in a follow-up email to CFO.com that respondents were asked a different question: "When expanding globally, how much money (if any) do you estimate your organization has lost due to compliance risks?" Respondents chose from preset ranges, and the losses in the report are self-estimates, not verified financial results, the spokesperson said.

Despite these estimated losses, confidence in international hiring remains high. Nearly all respondents (97%) expressed interest in global hiring, and 96% believe their organization is ready for it. However, only 22% said their company plans to conduct international hiring within the next six months, highlighting what the report describes as a disconnect between confidence and action.

Compliance carries financial costs

According to Safeguard Global, no respondent selected the "no losses" option when answering the question about estimated losses related to compliance risks in global expansion.

A spokesperson for Safeguard Global also told CFO.com that 5% of respondents estimated losses below $10,000; another 27% estimated losses between $10,000 and $99,999; 47% reported losses between $100,000 and $999,999; and 22% estimated compliance-related losses of at least $1 million.

The report notes that compliance failures can lead to fines, back pay, statutory benefits, taxes, and reputational damage, although respondents were only asked to estimate losses related to compliance risks, not to specify cost categories.

The survey also shows that these financial risks have become a significant consideration as CFOs weigh international expansion. Nearly four in five CFOs (79%) consider cost savings more important than access to talent when evaluating global hiring.

Confidence coexists with growing caution

The survey also found that enthusiasm for international hiring has not translated into immediate expansion plans, with geopolitical uncertainty appearing to be one reason.

Forty percent of CFOs said geopolitical turmoil has made their organizations more cautious about international hiring; 38% said it has hindered their ability to expand globally. Nearly one in five respondents said their company relocated employees to other countries in the past year due to geopolitical conflicts.

Florence Cazemajou-Flint, CFO of Safeguard Global, said financial leaders remain confident in their ability to hire internationally but often underestimate the operational complexities involved.

"The challenges CFOs face in managing global hiring—whether internal or external to the organization—are only becoming more complex," Cazemajou-Flint said in the report. "Despite their confidence in managing cross-border hiring and seizing global opportunities, many may underestimate the resources needed to navigate the realities of international employment."

Operational obstacles remain

The survey also explored the practical challenges companies face when hiring across borders. Respondents identified making their first hire in a new country as one of the most difficult aspects of international expansion.

Other key challenges include: testing local hiring before deciding whether to expand into a new market; managing workforce changes related to acquisitions or restructuring; supporting short-term, project-based, or seasonal hiring across countries; and reviewing overseas employment arrangements due to compliance concerns.

When asked what support would improve their ability to manage global hiring, CFOs most frequently cited support with local employment contracts, payroll and benefits administration, access to country-specific compliance guidance, and faster onboarding processes.

The findings also highlight the limitations of applying headquarters-designed employment policies across multiple regions. International expansion often requires adapting payroll, contracts, benefits, and compliance processes to local laws rather than relying on standardized solutions developed at headquarters. Additionally, according to Safeguard Global, every global expansion triggers compliance-related issues that could have been avoided with proper planning.