Dan Schawbel* says the shift to remote working during the pandemic is spawning a new sub-class of employee — the digital nomad.
The shift to remote working during the pandemic has created unprecedented opportunities to live anywhere without restrictions.
In fact, COVID-19 has accelerated some decisions around travel and living.
People who were contemplating moving out of cities and into suburbs within a two-year timespan did so in two months.
The incentive to live in a cheaper part of the country (or world) has never been greater because employees get to keep their job and salaries in many circumstances.
Even before the pandemic, some workers at more progressive organisations were already working remotely from locations across the world.
Although travel has become more complicated during our current conditions, people still yearn to get away, explore, and change their environment.
Many employees won’t ever have to live near their workplace again; in some cases, they might not even have to be located in the same country.
Since remote work has been both normalised and proven to be productive for so many, the stigma has been removed.
Years ago, the gig economy and freelancing marketplaces gave rise to the ‘nomadic workforce’, whose participants were referred to as ‘digital nomads’.
With the advancement and proliferation of broadband internet, digital nomads can travel and work wherever they want, living a lifestyle that many only dream of.
Just before the pandemic, I travelled to Bali, Indonesia, which is one of the most desired locations for nomads (think beaches, scenery, food and the low cost of living).
I asked one young man if he was a digital nomad, and to my surprise, he was insulted by this question, even though he fitted the description.
I learned he was remotely running a global internet company, but felt that the ‘digital nomad’ label had a negative connotation.
While this lifestyle might not be for everyone, the concept of work-life tourism is becoming increasingly commonplace.
So who are digital nomads and how do they differ from remote workers?
Digital nomads are a subsection of remote workers.
Not every remote worker is looking to change their geographic location; many are happy working from home.
Others have family obligations that would make it impossible to travel, and some are required to occasionally commute into an office.
For those who can travel and want to do so, being a digital nomad is about exploration, saving money, and being challenged — it’s a lifestyle choice and an increasingly popular one.
Much like remote work, being a digital nomad is about work-life choice, individual preference, and lifestyle.
Not everyone is meant to work from their home every day, nor is everyone meant to travel the world while working and without a place to call home.
For both worker classifications, there’s a need for flexibility and greater control over their working arrangements, instead of being confined to a specific place or restricted to a 9-to-5 schedule.
Younger people have always been more likely to embrace the nomadic lifestyle, typically because they have fewer responsibilities and more freedom.
In general, older individuals must think about the needs of their family members and are therefore more likely to settle down in one location.
So in spite of the growing interest in nomadism among all age groups during the pandemic, younger generations continue to dominate the work-tourism landscape.
All signs point to the remote work trend becoming a permanent way of life, and therefore the sub-trend of digital nomadism is likely to grow as well.
One indicator that nomadism will continue is that some major companies are open to supporting full-time employees who wish to pursue this lifestyle.
For instance, Microsoft will allow for a domestic or international relocation, covering worker home office expenses but not relocation costs.
The flexibility and support around corporate relocation will enable more workers, especially younger ones, to choose the nomadic lifestyle.
Research finds that nine out of 10 nomads are either highly satisfied or satisfied with their work and lifestyle.
So much so, that 53 per cent say they plan to continue as digital nomads for at least the next two years.
Companies will not only benefit from a larger, more robust talent pool but one that has a well-developed set of digital skills that are highly valuable in today’s workplace.
One study found that nomads are much more likely to be early technology adopters, specialists in their fields, highly skilled, and possessing a university or advanced degree.
In fact, nomads (and their employers) enjoy many of the same benefits as remote workers, including higher productivity, satisfaction, and retention.
However, while remote workers typically remain in the confines of their own homes, nomads benefit from changing their scenery, which improves work-life balance, health and creativity.
There are financial benefits as well. Employers can save money on real estate costs, and nomad workers often have a lower cost of living but with the wage rates of higher-cost locations.
The biggest drawbacks are that nomads can be harder to manage, scheduling issues across time zones, easier to replace, and security issues.
Also, nomads may find that being “out of sight and out of mind” such as lacking the same visibility as their office counterparts, could be a disadvantage post-pandemic.
There is also a host of other employer considerations like understanding tax implications, ensuring legal compliance, maintaining a cohesive workplace culture, and maintaining business continuity.
Digital nomads will continue to roam the world post-pandemic and companies that want to attract and retain them will enable their lifestyle in exchange for their highly-skilled talent and productivity.
*Dan Schawbel is a bestselling author and Managing Partner of Workplace Intelligence, a research and advisory firm helping HR adapt to trends, drive performance and prepare for the future.
This article is part of Dan’s Workplace Intelligence Weekly series.
