The boom in digital nomadism, a management headache

With the boom of remote work, the number of digital nomads – those who travel and work from just about any connected place in the world – has grown by nearly half between 2019 and 2020. Interestingly, traditional workers have been joining the ranks of digital nomads, so far mainly freelancers. But without formalization, nomadism poses risks.

Among the unprecedented issues raised by nomadism are legal and financial questions. For instance, the rules and regulations that apply to a person’s work are usually those of where the work is performed, regardless of company HQ. This can become risky when workers hit the road without informing their bosses, exposing both employee and employer to new tax or employment laws. Digital nomads also tend to pick cheap locations while earning the same high salaries as back home – but some companies like Morgan Stanley are less than happy to pay New York wages for those working from a cabin in the mountains.

Does this mean companies should try to corral everyone back into the office? No, because talent in the form of well-educated, digitally savvy employees is often in short supply. So explicit policies should help attract and retain digital nomads while reducing associated risks. How? Specific programs could identify nomads and their destinations, detail acceptable and “no-fly” locations, the length of time a worker may spend there, and other relevant arrangements.

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