A recent survey conducted by MBO Partners® reveals a significant shift in the American workforce, with 11% of U.S. workers now identifying as digital nomads. This represents a substantial increase from previous years, marking a 4.7% rise from last year alone and a staggering 147% growth since 2019. The 2024 State of Independence Report underscores the need for corporations and regulators to urgently update policies and social contracts to address the evolving work landscape.
The study highlights that despite the growing popularity of digital nomadism, 36% of digital nomads operate without formal employer consent, posing considerable risks in terms of regulatory compliance, taxation, and cybersecurity. As this trend continues to gain momentum, the need for formal, enforceable policies becomes critical for mitigating these risks while capitalizing on the benefits of a flexible workforce.
Miles Everson, CEO of MBO Partners, emphasizes the importance of attracting top talent by allowing workers the flexibility to work when and where they want. According to Everson, implementing structured policies for tracking and engaging with remote and nomadic workers should be standard practice. Such policies not only help in attracting in-demand talent but also reduce potential legal and IT risks.
Key insights from the report include the normalization of digital nomadism, which now encompasses 11% of the U.S. workforce. This evolution from a niche lifestyle to a mainstream work movement necessitates a reevaluation of the social contract between workers and corporations to better align with current realities and reduce regulatory burdens.
Structured digital nomad programs are identified as beneficial for both employers and employees. These programs aid in talent acquisition and ensure compliance with tax, legal, and security policies. Additionally, digital nomads often serve as ambassadors for work-life balance, enhancing productivity and fostering a dynamic company culture by aligning work projects with travel plans.
The report also sheds light on the trends of 'slomading' and 'tethered nomading.' With 40% of digital nomads planning to spend more time in the U.S. due to travel complexities and in-office requirements, the trend of visiting fewer locations but spending more time at each stop is gaining popularity. This approach enhances social connections, reduces travel stress, and improves productivity.
However, the presence of 'hidden' corporate digital nomads—those who work without their employer's knowledge—poses significant risks. About one-third of digital nomads fall into this category, increasing the potential for legal and cybersecurity issues.
The survey also reveals a growing interest in the digital nomad lifestyle, with 21 million workers expressing a desire to become digital nomads in 2024 and 45 million considering it. Despite only a small percentage of these aspirants making the transition, this data indicates a ready pool of potential digital nomads, suggesting that the trend will continue to grow.
For more detailed findings, the 2024 MBO Partners Digital Nomad research brief is available at https://www.mbopartners.com/state-of-independence/digital-nomads.
