Survey: US and UK CFOs Report US$1m Lost in Compliance Costs

Finance chiefs across the UK and US are hitting pause on international expansion after widespread compliance blunders caused substantial financial damage.

A study by workforce management firm Safeguard Global reveals a stark split between ambition and execution among senior finance leaders. 

The findings draw on a survey of 400 US and UK finance directors conducted by Censuswide on behalf of Safeguard Global.

While 97% of surveyed CFOs express interest in global hiring and 96% believe their firms are prepared, every single respondent admitted their organisation had suffered financial losses due to noncompliance when expanding internationally.

The financial damage is significant. Overall, 78% of finance leaders reported losses of up to US$1m, while 22% suffered hits exceeding US$1m. 

US executives took the heaviest blow, with 30% reporting losses of US$1m or more, compared to 14% of their UK counterparts.

In contrast, 86% of UK finance leaders and 70% of US executives kept losses under the US$1m mark.

Speaking to Finance Chief exclusively, Florence Cazemajou-Flint, CFO at Safeguard Global says: “Global hiring has become far more complex than simply finding talent in new markets. Today's CFOs must navigate evolving compliance requirements, shifting employment regulations, and geopolitical uncertainty – all while enabling growth and managing risk. 

“The organisations that succeed recognise that global expansion requires more than a strategy; it requires the right infrastructure, local expertise and operational support to execute with confidence. 

“By combining strategic ambition with disciplined execution, CFOs can reduce complexity, strengthen compliance and unlock the full value of a global workforce.”

The cost-saving trap

Financial oversight rests heavily with finance chiefs, as two-thirds remain directly involved in all final hiring decisions across borders. Unsurprisingly, 79% ranked cost savings as the single most critical metric when recruiting internationally.

However, an overemphasis on short-term savings often leads executives to underestimate local employment laws and regulatory environments. 

This creates high-risk cross-border arrangements that ultimately damage talent strategies and trigger severe financial penalties.

Geopolitical instability has added further friction to global growth plans. 

To navigate international conflicts, 38% of finance chiefs increased relocation budgets, 36% delayed or scaled back recruitment in affected regions, and 36% created larger contingency budgets.

Furthermore, 40% of leaders noted that geopolitical disruption left their organisation far more cautious about overseas recruitment, while 38% stated it actively hindered company growth. Over the past 12 months, 19% had to relocate staff abroad due to regional conflicts.

Operational roadblocks halt plans

These compounding obstacles have significantly slowed international momentum. More than a third (37%) of respondents now prioritise domestic hiring over overseas recruitment, plan to cut cross-border hires, or both.

Only 22% plan to hire internationally over the next six months.

Navigating overseas growth often stalls at key operational turning points. 

Finance teams encounter the sharpest friction when attempting to place a first worker in a new territory or test out temporary hires before committing full capital to market expansion. 

Similarly, handling complex workforce changes following M&A activity, managing seasonal project staff across borders, and auditing existing overseas employment structures to fix regulatory errors frequently disrupt broader strategic goals.

Florence continues: "The challenges CFOs face in managing global hiring – from both inside and outside their organisations – are only becoming more complex. While they're confident in their ability to manage cross-border hiring and capitalise on global opportunities, many may underestimate the resources needed to navigate the realities of international employment. 

“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.”

When asked what tools would improve their cross-border operations, Florence's peers pointed to targeted external support. 

The top requirements included assistance with local employment contracts, payroll and benefits, clearer country-specific compliance advice and mechanisms to speed up onboarding timelines.