The Future of Digital Nomadism

Many employers have launched return to work policies, but the demand for flexible arrangements isn’t going away

Telecommuting. Digital nomadism. Work from anywhere. It’s had many names over the years, but the concept is the same. The number of people seeking to combine the freedom to experience different places or cultures while simultaneously earning an income has been growing since the technology made it possible. In fact, the term “digital nomad” likely dates to the 1997 book by the same name, authored by Tsugio Makimoto and David Manners. In 2020, Estonia was the first of now more than 60 countries and territories to introduce a visa program to encourage the arrival of digital nomads. The idea is that self-employed individuals or those working for foreign employers can live in and contribute to their economies for defined periods of time, ideally without disrupting their own labor markets. 

The number of people taking advantage of location-independent work arrangements exploded during the 2020 pandemic and has continued to grow ever since. But with many large multinationals now announcing return to office (RTO) policies for at least three, if not five days a week, what does the future of digital nomadism hold, and what role might global mobility professionals play in it?

A look at the numbers

First, it’s worth noting a few statistics. It’s estimated that currently over 35 million people consider themselves digital nomads, according to an MBO Partners report. Other reports put that number closer to 40 million globally. In a trend originally defined largely by self-employed or freelance workers – very often single men working in tech industries – it has since evolved as working conditions changed and more professionals with traditional office employment adapted to fully remote work.

Today, the largest percentages of digital nomads are still single and fall in either the Gen Z or Millennial generations, but now there are plenty of females, families with children and older workers who have opted for the remote lifestyle, too. What motivates them? The answers will vary, but frequently include the desire to travel, an appetite for flexible work arrangements, the quest to live and work in more affordable locations and the perception that what prior generations might have regarded as symbols of success – a 9-to-5 office job and homeownership – are now either unattainable or undesirable. Approximately 90% of digital nomads have completed some form of higher education, with 33% holding Master’s degrees, according to The Nomad Almanac.

The current landscape

Opinions on digital nomads vary widely and are likely to continue to evolve alongside our complex geopolitical and economic environment. An unprecedented number of major elections in 2024 ushered in new leadership in multiple regions around the globe. Some governments regard the economic and other benefits of enticing digital nomads as outweighing any risks, while others are taking the opposite approach, scaling back in response to local pushback and adopting a more protectionist view.

At the same time, employers continue to grapple with skill shortages globally, and the digital nomad community will undoubtedly remain a talent pool well worthy of consideration. Even in companies where remote work is not the norm, managers may seek allowances for it, especially if it comes down to a “make or break” feature in the recruitment or retention of top talent. A case could also be made that digital nomads naturally possess many of the positive traits and skills employers look for, like resilience, innate curiosity about and openness to other cultures, a willingness to take calculated risks and independent problem-solving.

“Astute employers cannot ignore the fact that many highly skilled, high-performing individuals who have had a taste for the nomadic lifestyle will be very reluctant to give it up.”

Then there is the work environment itself. Despite a pendulum shift that could see greater numbers of employees returning to more traditional, in-office work arrangements, astute employers cannot ignore the fact that many highly skilled, high-performing individuals who have had a taste for the nomadic lifestyle will be very reluctant to give it up. In fact, all signs point to flexible work options continuing to expand even beyond remote work, as larger numbers of younger employees enter the workforce and seek experiences that align with their individual preferences and lifestyles. Exactly what that flexibility looks like will continue to evolve, spanning work settings and spaces, hours, benefits and time off.

The role of global mobility

All these converging complexities give global mobility professionals opportunities to continue to demonstrate and cement their value to their organizations. They have the knowledge, experience, relationships with service providers and expertise to help ensure all the right questions are asked and answered when companies consider whether to hire new or allow current employees to work from just about anywhere. For example, a few of the most important considerations are:

Compliance

Employing digital nomads involves understanding all the relevant regional immigration, tax and employment laws and ensuring employees are properly classified. With so many countries opting to institute some form of a digital visa, it’s essential to know and stay on top of the specifics, just as with all other types of cross-border residence and work authorizations. These can include minimum income or salary requirements, length of allowable stays, permissible work activities and whether there are provisions to extend or renew.

Some applications may require proof of employer permission to work remotely or rigorous background checks to prove applicants are free from criminal convictions. Ensuring all parties understand and fully comply with the tax obligations in home and host locations for both employee and employer is also essential, as is being aware of the risk of potentially triggering a permanent establishment (PE) and the financial obligations that go along with that.

Policy

Just as employers do with individuals reporting to an office, establishing clear expectations around compensation, work hours, time off, performance, code of conduct, communication and equipment use will help ensure mutually successful and beneficial employer/employee relationships with remote or nomadic team members. Global mobility professionals can offer region-specific benchmarking data and expertise to look at each scenario holistically and make recommendations grounded in data.

Security and data protection

The idea of logging in and working from a laptop anywhere in the world may be appealing to employees but can pose the stuff of nightmares for IT teams. Rapid advancements in technology and expanding network access continue to make remote work possible in more locations, but it’s essential employees know and strictly comply with all cybersecurity and data protection protocols and policies. Collaboration across IT, legal, HR and business travel teams is critical for developing, testing and enforcing policies and ongoing training to keep your company and employees secure.

Housing

One of the biggest challenges of a nomadic lifestyle is securing acceptable short-term accommodations. Depending on your policy benefit options, destination service providers and temporary living firms can be a huge help in sourcing and securing housing options that will keep your employees safe and secure.

What’s next?

There’s no doubt that how, where and when we work will continue to evolve. Whatever changes take shape, though, we can count on a certain percentage of the employee population embracing the call to reject the same commute and office environment every day in favor of the freedom to work, live and travel throughout different places. Faced with a fiercely competitive talent landscape and a generation of employees prioritizing flexibility, savvy employers will take heed and call upon the expertise of their global mobility teams and service partners to help them make the most of a diverse and nomadic talent pool.