Are Digital Nomads The Road To The Future?

Here is why you need to pay attention to this growing trend

You’re familiar with the images…an individual with a laptop sitting on a sun-kissed tropical beach…someone sipping a Cappuccino in a European sidewalk café…another person lounging on the deck of a cruise ship.

They’re so-called digital nomads unchained from a desk and working while traveling the globe.

It’s a trend that’s on the increase, even if the reality doesn’t always match up to the glossy pictures. And it follows the widespread acceptance of remote work (especially hybrid work). 

But if someone is not only remote but on the move every few days, weeks, or months…what does that do for connectivity and productivity? Is it something that employers should accept, even welcome?

First, let’s be clear: it’s not for everyone. Not every individual can have the discipline to travel and perform effectively. Not every job is suitable.

Real-World Experience

Here’s a classic example of a digital nomad in practice that worked out well. Ten years ago—before it became fashionable—a writer friend named John wanted to continue working while he explored Europe. His main client, a mega-successful Silicon Valley entrepreneur, was open-minded and agreeable—as long as my friend continued to deliver quality work on time. John spent a few months in England, a few months in Italy (mostly Florence), a few weeks in Prague, Barcelona, Dublin, and again a few months in England.

From the time zone standpoint, he was always eight or nine hours ahead of his client. He wrote first thing in the morning and emailed content so it was waiting for the client to review as soon as he started his workday in California. Meanwhile, John soaked up the cities where he was staying (often in an Airbnb) and during the extended stays lived like a local. Late afternoon or early evening he made contact with the client and did a few more hours’ work. If it meant an occasional midnight phone call—so what? It was a trade-off he found more than acceptable. One year later, the writer and client were both happy with the results.

My friend found inspiration from enjoying the change of pace and the change of cultures. He is not alone.

Positive Surveys

A report “The Digital Nomad Search Continues,” by job platform MBO Partners, found that 85% of digital nomads were “highly satisfied” with their work and lifestyle, and 54% planned to continue as digital nomads for at least the next two years. 

A survey conducted by SafetyWing, a company that handles insurance for such workers, discovered that 93% reported higher levels of satisfaction, 90% improved productivity, 61% said their stress levels had gone down, and 44% claimed better quality of mental health. 

HR professionals need to bear all of this in mind as well as the fact that the kinds of people becoming digital nomads are not who you might imagine. Perhaps you think that it’s mostly younger single professionals, especially Generation Z? Not so. The MBO Partners survey found that 44% are Millennials, followed by Gen X at 23%, Gen Z at 21%, and Baby Boomers at 12%. The SafetyWing survey found that 58.8% were either married or in a partnership and 48.3% had children under the age of eighteen.

The kinds of roles fulfilled by digital nomads are much more likely to meet your expectations. According to MBO Partners they work in a variety of fields including information technology (19%); creative services (10%); education and training (9%); consulting, coaching, and research (8%); sales, marketing, and PR (8%), and finance and accounting 8%. The common denominator, of course, is that all of these roles can be performed online.

Digital nomads are not always on the go. A FlexJobs survey discovered that 73% traveled to just one or two countries, 19% visited three-to-four countries, and 8% went to more than five countries. In addition, 42% had been digital nomads for less than a year, 33% for one-to-five years, and 24% for more than five years. It’s a trend that’s growing.

Individual Benefits

Some individuals thrive when they’re able to experience a variety of cultures and environments. For those with the right kind of acumen, and discipline, there are tremendous advantages. They find it stimulating and productive. They say they have a better work-life balance. They appreciate the flexibility and the opportunity to expand their horizons by getting a better understanding of other cultures and making friends in other parts of the world. For them, it takes personal development to new heights.

Financially, they’re also happier. Some 79% report being very satisfied or satisfied with their earnings, possibly because they travel to places where the cost of living is lower—a practice that’s been dubbed “geo arbitrage.”

Personally, I’m at my best when I’m juggling travel to different places and not stagnant in one location. My clients are all across the U.S. and my entire team has always been remote. Travel keeps me constantly engaged.

Company Benefits

Organizations need to recognize that digital nomads are not only here to stay, but also likely to become a larger part of the workforce. It’s not a cause for concern. The benefits to companies include access to global talent and the potential to hire adventurous go-getting employees.

All the indications are that employee engagement is boosted and employee retention is improved.

Important Considerations

Many digital nomads, of course, are independent contractors but there are a surprising and increasing number of full-time employees. FlexJobs reports that more digital nomads are employed by a company (35%) than digital nomad freelancers (28%) or business owners (18%).

For employees on the move, HR needs to set up policies and procedures that require them to make the company aware of their current and projected residences to ensure compliance with local and international regulations including tax and insurance.

The very nature of being a digital nomad means a heavy reliance on technology. It’s essential therefore to make sure security is a high priority. Failsafe mechanisms like kill switches which curb unauthorized access should be considered in case a nomad’s laptop is lost or stolen.

Companies that embrace digital nomads are forward-thinking and likely to accrue benefits with a vibrant, talented workforce that’s engaged and likely to remain on board.

Jason Richmond is the CEO and Chief Culture Officer at Ideal Outcomes, Inc.