The most popular locations for remote work

According to this article last week from HR Dive, data from Gartner found that high performers are likely to leave over strict return-to-office (RTO) mandates. When companies reduce flexibility, they’re likely to drive away high-performing employees, especially women and millennials, according to recent survey results. The ultimate takeaway was that mandated on-site requirements can carry very steep costs for talent attraction and retention. 

Per the Austin Business Journal:

Gartner found the intent to stay among average employees dropped by 8% with strict RTO mandates. However, high-performing employees experienced a more significant decline, with their intent to stay dropping by 16%, double the rate of their average counterparts. Millennials and women also showed lower intent to stay, with declines of 10% and 11%, respectively.

Gartner offers up some best practices for organizations looking to create formal in-office work requirements, but the reality is a lot of people prefer hybrid and remote work experiences. According to this data from Kumospace, 80% of workers engage in hybrid and remote working and 98% of workers express a desire to work remotely at least some of the time. Currently 48% of employers have maintained some form of remote work arrangements (includes hybrid). 

In the U.S., this interactive map lets you explore the states with the most Americans working from home. The last time the US Census Bureau asked (in a survey earlier this summer), 27% of respondents said that there was someone in their household teleworking or working from home in the last 7 days. Although that’s down from the pandemic peak in 2021, when 37% of Americans said the same, there are still pockets around the country where figures have held up. 

What are the best international locations for remote work? HR Economic Times shares that in looking into digital nomads, Global Citizen Solutions analyzed 65 countries' remote work programs and Spain came out on top. The key difference makers were affordable living, zero taxation on foreign income, and strong technological infrastructure. In fact, other European countries dominated the list with Canada being the only non-European country to reach the top 10.

According to this data, here are the 10 best destinations for remote work:

1. Spain
2. Netherlands
3. Norway
4. Estonia
5. Romania
6. Malta
7. Portugal
8. Canada
9. Hungary
10. France

The shift towards this new work paradigm brings many challenges, including regulatory compliance, taxation complexities, and visa management. Mobility teams have had to step up and support companies to hire and manage these digital nomads compliantly. That starts with creating a clear policy of location disclosure along with improving tracking and reporting systems. Ignorance of an employee's location can lead to legal issues, including labor-related audits and violations of employment laws. It can also put your company at risk of permanent establishment (PE) in a foreign country. Knowing and planning to stay on top of compliance issues and avoid legal misadventures is critical. Global mobility teams have been valuable for helping establish protocols and guardrails for remote work and international labor compliance.

So many positions today within corporate global mobility teams are centered around immigration. A good portion of these roles are about addressing the potential pitfalls and risks associated with having a more global workforce. According to this white paper from Newland Chase:

For those working in global mobility and corporate travel management, it demands proactive engagement, meticulous research, and a keen understanding of international legal frameworks to ensure smooth and lawful transitions for their digitally mobile workforce.

Companies can mitigate these risks by adopting proactive strategies, such as: 

• Establishing clear policies regarding work locations „ 
• Understanding tax jurisdiction implications „ 
• Maintaining detailed records of employees’ travel and work locations

Despite RTO initiatives, many companies will continue to see this remote work continue, so everyone will need to make sure they are carefully structuring and managing remote work effectively.