How an EOR Helps Mid-Market Companies Overcome the Operational Challenges of Global Hiring
The challenges associated with global hiring are many, especially for mid-market companies that lack sufficient infrastructure or expertise to hire compliantly in other countries. Low-cost labor markets or countries with a healthy supply of specialized skills seem attractive until employers realize how long it takes to establish an entity overseas, or they come face to face with another country’s complex employment laws.
An employer of record (EOR) not only reduces many of the operational roadblocks that can surface during cross-border hiring, but it also accelerates the hiring and onboarding timeline, offering a more efficient way for organizations to access talent outside their own country.
Key takeaways
- Safeguard Global’s report, The Global Hiring Confidence Series: Untangling the CFO Paradox Between Confidence and Restraint, reveals that 97% of CFOs say their company is interested in global hiring and 96% believe their company is prepared for it.
- However, only 22% of CFOs report that their company planned to hire globally between June and end of December 2026. And 37% of CFOs say their company is decreasing global hiring, prioritizing domestic hiring over international hiring, or both.
- The operational challenges of global hiring may be a factor: Only 41% of CFOs are very confident that their organization can manage global workforce hiring effectively.
- Safeguard Global’s EOR solution hires workers and manages tax, payroll, and benefits requirements in 187 countries and territories. It also handles relevant compliance obligations. This eliminates these tasks from the workloads of HR, finance, and legal teams, so they can stay focused on bigger, more impactful work.
How do CFOs feel about their company’s ability to hire globally?
Safeguard Global’s report, Untangling the CFO Paradox Between Confidence and Restraint, is based on a June 2026 survey of 400 CFOs across the UK and US. Nearly all CFOs surveyed (97%) indicate that their organization is interested in hiring outside their own country, and 96% are confident that their company is prepared to hire internationally.
But actual hiring activity does not match the level of interest or preparedness the CFOs report. Only 22% of CFOs say their organization had plans to hire outside their footprint in the second half of 2026. And 37% note that their company is decreasing global hiring, prioritizing domestic hiring over international hiring, or both.
What accounts for this paradox between readiness and reluctance?
Do operational challenges keep companies from hiring across borders?
It seems they do. While CFOs say they’re confident their company is prepared to hire globally, less than half express strong confidence in their company’s ability to manage it effectively. To be fair, the process can be time-consuming and complex.
Hiring in another country typically includes:
- Determining where to hire (if it hasn’t already been decided)
- Setting up a legal entity in that country
- Identifying the right candidate(s)
- Drafting a contract that complies with the laws of the employee’s country
- Determining statutory benefits pertaining to paid leave, healthcare, retirement, etc.
- Setting up payroll in the local currency with all required tax withholdings and contributions
- Onboarding the employee(s)
- Providing ongoing HR support
- Continuously monitoring the country’s employment and labor laws and adapting to any changes
This is not an exhaustive list; additional steps may be required depending on the country. And we should note that the act of establishing a legal entity in another country is itself a complicated process that can take months. So, it’s not surprising that CFOs have some doubts about their organization’s ability to manage the process well.
When it comes to hiring across borders, what do companies need help with?
CFOs identify several aspects of hiring internationally that present challenges for their company.
| What CFOs say their company needs |
|---|
| Help with hiring in a new country |
| Guidance for comparing countries |
| Assistance with local contracts / payroll / benefits |
| Clear, country-specific compliance guidance |
| Ability to onboard more quickly |
| Contractor conversion guidance |
| Help in managing geopolitical disruption |
How does an EOR eliminate the operational challenges of cross-border hiring?
An EOR offers some compelling benefits for companies that want to tap into labor markets outside their own country, especially when they are hiring in small numbers or exploring a market for the first time.
The greatest advantage is often the elimination of the entity setup requirement. Because the EOR employs the individual through its own entity in that country (and “leases” the employee back to the company), there’s no need for the company to set up its own entity there. This advantage helps companies expedite their hiring plans.
Additionally, as the legal employer, the EOR:
- Drafts the contract in compliance with local laws
- Provides paid leave, healthcare, retirement, and any other benefits required by law
- Administers payroll in the local currency with all required tax withholdings and contributions
- Onboards the employee
- Provides ongoing HR support
- Manages the termination process in compliance with local laws
- Consistently monitors the country’s employment and labor laws for any changes
Beyond these benefits, an EOR can also help a company mitigate the risk of worker misclassification in another country by employing independent contractors on their behalf. An EOR can also employ workers from an M&A transaction during the transition to new ownership.
Learn how an EOR can help you overcome your cross-border hiring challenges
If you’d like to learn more about how an EOR can alleviate the operational workload associated with your overseas hiring, get in touch. We’ll explain specifically how we can assist you.
You can also read our blogs on how an EOR can help companies with global hiring ambitions limit the impact of geopolitical disruption and manage compliance risk.
Disclaimer: The information provided is for informational purposes only and does not constitute legal or professional advice. Safeguard Global disclaims any liability arising from reliance on this information. Certain content may be sourced from third parties and remains their intellectual property; all other content is owned by Safeguard Global and protected by applicable intellectual property laws. You are encouraged to seek professional or legal advice to address any issues, questions or matters arising from the information contained herein.
