Reduce the Risk of Noncompliance in Global Hiring with an EOR
Newly published research from Safeguard Global indicates CFOs are confident that their companies are prepared for global hiring, and they’re certainly interested. But something is holding them back. Their hiring plans show restraint, and compliance risk is a likely factor. However, there’s an effective solution for handling this: Pass your cross-border hiring and the accompanying compliance risk to an employer of record (EOR).
Key takeaways
- Based on a survey of 400 CFOs across the UK and US, The Global Hiring Confidence Series: Untangling the CFO Paradox Between Confidence and Restraint notes that 97% of CFOs say their company is interested in global hiring and 96% believe their companies are prepared for it.
- But 37% of CFOs say their company is decreasing global hiring, prioritizing domestic hiring over international hiring, or both. And only 22% of CFOs report that their company has plans to hire globally in the next six months.
- All CFOs – 100% – surveyed report that their company has suffered losses due to compliance risk when expanding globally, with 22% experiencing losses of $1M or more.
- An EOR offers an effective way to mitigate compliance risk. It hires workers on behalf of an organization and acts as a worker’s legal employer in their country of residence. As the legal employer, the EOR manages compliance with local employment laws and policies.
What do CFOs say about global hiring?
Employment and labor law compliance is complicated and grows even more so as a company’s footprint expands. With each new jurisdiction comes a new set of laws that can change without warning and an increased risk of noncompliance.
This risk could account, at least in part, for the gap we uncovered in Untangling the CFO Paradox Between Confidence and Restraint, which is based on a survey of 400 CFOs across the UK and US. While CFOs report overwhelmingly that their company is interested in and prepared for global hiring, their actual hiring plans don’t match their enthusiasm.
The high cost of noncompliance
Compliance risk can certainly dampen that enthusiasm. For a costly example of noncompliance, consider the case of a Pennsylvania home healthcare business. In 2021, the US Department of Labor (DOL) investigated the business for possible worker misclassification. The company had allegedly misclassified hundreds of workers as independent contractors and failed to compensate them for the overtime they worked. The case proceeded to a jury trial in early 2026, and months later, the company agreed to pay $3M to resolve the case.
Particularly noteworthy, this case played out against a backdrop of regulatory uncertainty and shifting policies. In 2025, federal courts vacated 2024 regulations on overtime eligibility exemptions, but a new DOL rule to replace the earlier one only went into effect in May 2026.
The point is this: The Pennsylvania case involved a US business that violated US employment law, but for a business managing compliance with the laws of another country in addition to its own, things can become very complicated.
Compliance-related losses reported by CFOs
Every CFO we surveyed reported compliance-related losses. Seventy-eight percent of CFOs reported losses of up to $1M USD, while 22% noted losses of $1M USD or more. Broken down by country, 30% of US CFOs and 14% of UK CFOs reported losses in the higher band, while 86% of UK CFOs and 70% of US CFOs noted losses under $1M USD.
But financial losses aren’t the only repercussions. Executives can face jail time for employment law violations in a country, and a company can be barred from operating in the jurisdiction. These are heavy prices to pay, especially when a violation stems from lack of clarity in local laws. That’s why local expertise is critical.
How does an EOR help manage compliance risk?
Global hiring allows an organization to access a broader pool of specialized talent, achieve cost savings, and test a foreign market before investing more deeply. But these benefits have to be balanced with the risks, and they can be daunting. An EOR reduces the compliance risk that accompanies cross-border hiring by acting as the legal employer for employees who reside and work in other countries.
The Safeguard Global EOR solution, for example, enables hiring across 187 countries, in full compliance with local employment laws and with respect for local cultural norms. Our 400+ locally based experts provide the first-hand knowledge that ensures continuous adherence to contract requirements and laws concerning working hours, benefits, and pay. These experts also serve as a local touchpoint for employees — someone who speaks their language and understands their culture.
Learn more about The CFO Paradox report and Safeguard Global’s EOR solution
To learn more about the CFO perspective on global hiring, download The CFO Paradox report. And to find out how an EOR can expedite global hiring and reduce the compliance risk associated with it, visit our EOR page or contact us.
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.
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