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.
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.
