CFOs play a pivotal role in helping organizations successfully recruit and hire globally. They must balance opportunity with risk, navigating the financial aspects of bold international moves while minimizing the inherent risks of operating in different locales with varied regulatory, legal, financial, and cultural requirements.
But just how well are CFOs achieving that balance?
To find out, Safeguard Global surveyed 400 CFOs in the United States and the United Kingdom, asking 1) how confident these leaders were in their organization’s ability to manage global hiring, and 2) how prepared they were to hire safely.
With 97% of CEOs surveyed saying their company was either interested, investing, or actively engaged in cross-border hiring, these questions were exceptionally relevant.
But a surprising paradox emerged from the survey: one that can affect organizations’ ability to achieve their cross-border hiring goals.
A paradox between CFOs’ confidence and restraint
Safeguard Global CFO Florence Cazemajou-Flint explained in the report that the data highlighted a sharp contradiction. “CFOs report confidence and hesitation: They claim a readiness and enthusiasm for global hiring, but their organization’s hiring plans paint a picture of restraint.”
The report found that among CFOs:
- 83% said their companies could compliantly hire a worker in a new country without setting up a new entity
- 79% said their companies could support an employee’s relocation to another country
- 83% said they could manage the requirements of global hiring, such as local contracts, payroll, taxes, and benefits requirements
- 83% were confident they could convert a contractor into a full-time employee without causing disruption
However, despite this strong interest and confidence, the data found that CFOs were exercising significant restraint: More than a third (37%) said their organization was prioritizing domestic hiring over international hiring, planning to decrease cross-border hiring, or both. In fact, just 22% of CFOs said their organization planned to hire globally in the next six months.
What is especially startling is that despite CFOs’ stated confidence that they were prepared for global hiring, every CFO in the survey admitted that their organizations had experienced losses for noncompliance. Twenty-two percent said those losses amounted to at least $1 million.
What these findings mean for CFOs
“CFOs need to walk a tight line,” Cazemajou-Flint said in the report. “They need to be confident enough to make bold decisions but restrained enough to avoid trouble.”
Finding that balance isn’t easy, especially considering how complex cross-border hiring is, with no signs of becoming simpler.
Beyond finding the right candidates, organizations must operate amid geopolitical disruption and dynamic regulatory environments. These factors increase risk and slow progress in global hiring.
CFOs may underestimate the resources needed to manage international hiring, Cazemajou-Flint says. “To avoid risks and reap the rewards, organizations need to develop and maintain a range of capabilities that enable them to find, hire, onboard, pay, and manage talent internationally, in compliance with local laws and with respect for local cultural norms.”
Solving the paradox by using an employer of record (EOR)
When asked what would most help them handle the complexities of global hiring, CFOs named three top things:
- Help with local contracts, payroll, or benefits
- Clear, country-specific compliance guidance
- The ability to onboard faster
The report detailed how an employer of record, or EOR, can address all these issues. An EOR is a third-party service that acts as the legal employer for a company’s team members in other countries. By using an EOR, a company can expand global hiring quickly and compliantly without establishing a legal entity to hire in a new country.
As a partner, the EOR hires and onboards the candidate, handles local payroll and tax withholding, manages country-specific benefits, uses compliant, country-specific contracts, and continuously tracks changes in local employment, labor, and tax laws to stay compliant.
The report notes that by shifting to an EOR, organizations reduce risk, free teams to focus on strategic priorities, and speed up onboarding.
With CFOs ultimately responsible for organizational success, using an EOR can minimize their paradox, Cazemajou-Flint explains.
“CFOs need more than confidence. They need the right support to simplify compliance, reduce risk, and scale global hiring with certainty. With so much at stake, it makes sense for CFOs to leverage the expertise and infrastructure of an EOR.”
Why Safeguard Global for your EOR?
Safeguard Global is a pioneer in the field and a world-class provider of workforce enablement solutions. With the ability to hire in 187 countries and more than 400 + locally based experts, Safeguard Global is an all-in-one solution for all stages of growth, enabling companies to expand their workforce without risk.
The CFO confidence paradox is real — and costly. Get the full report, “Untangling the CFO Paradox Between Confidence and Restraint,” to see what 400 CFOs across the U.S. and U.K. revealed about global hiring confidence, compliance risk, and what it takes to get it right.