The Rise of Digital Employees: The Fundamentals of Rewarding Them

Digital Employees are on the rise, and working remotely is now more than ever. More and more employees in the workforce today consider themselves digital employees. It is an opportunity for companies with the right mindset to take advantage of it to hire great people from all over the world. With this trend coming, a lot of ground rules need to be drawn up for being productive in the workplace and ensuring an engaged workforce.

What Is a Digital Employee?

A digital employee is an individual who works remotely, either from home or another location. This can be for any type of job, but especially for those with jobs that are more technical in nature. While technology has allowed many people the opportunity to work from home in the past few decades, it has become even easier in recent years with the rise of smartphones and other mobile devices.

In the past ten years, the number of digital employees has increased. Globally, 16% of companies are fully remote according to an Owl labs study . This same study found that about 62% of workers aged 22 to 65 claim to work remotely at least occasionally.

In May 2021, a Mercer study found that 70% of companies said they were planning to adopt the hybrid model. Many companies have already made the switch, including prominent brands such as Adobe, Salesforce, Spotify, and Twitter. And Microsoft’s Work Trend Index (published in March 2021) found that 66% of employers around the world are redesigning their workplaces to accommodate remote work arrangements.

There are many reasons why companies might want to consider hiring digital employees instead of traditional employees. For one thing, they don't have to worry about providing them with office space or maintaining an office environment. They also don't have to worry about paying for transportation costs or making sure that they get to work on time every day (or perhaps at all). This can save a company quite a bit of money over time depending on how many people they have working in this manner and what their salaries are like. In addition, they may be able to attract top talent that wouldn't otherwise be available if they were required to work in an office setting.

How are Digital Employees Changing the Definition of Productivity at Work?

Digital employees use technology to communicate with their colleagues and clients, usually through messaging and video conferencing apps like Slack, MS Teams, Zoom or Google Meet. The trend toward digital employees is changing the game for companies. As more workers log in remotely and work from home, it's important to recognize that they're no less productive than their in-office counterparts. In fact, they may be even more productive.

The concept of the digital employee doesn't just change how businesses manage their teams, it also changes what it means to be productive at work. In the past, productivity was measured by hours spent in an office chair. But as companies become more remote-friendly and flexible, that definition has changed. The new barometer for productivity is communication quality over quantity. In fact, some organizations have gone so far as to remove time tracking software from their employees' computers because it encourages them to work when they're not supposed to be working — on days off or during evenings and weekends when they could be spending time with family and friends instead.

According to a recent study by Workplace Options, a provider of flexible workplace solutions, digital employees are redefining productivity at work — and having an impact on how companies reward their employees. The survey found that the majority (70 percent) were just as productive working remotely as in an office setting; only 11 percent said they were less productive when working out of the office.

A Stanford University study of 16,000 workers found that working remotely increased business productivity by 13 percent when comparing the company’s profits to previous years. Many employees, management and executives see this improvement in themselves and their peers due to fewer distractions and more autonomy in creating a feasible work schedule.

The rise of remote work has been widely documented, but what does this mean for the companies that employ them? If a company's workforce is increasingly distributed across multiple locations and time zones, how should it reward its employees?

Key Challenges for Managers in Rewarding Digital Employees

Rewarding digital employees is no easy task. As companies increasingly rely on a workforce that is not always on-site and often working remotely, they face a number of challenges when it comes to rewarding their workers.

The first challenge is determining what constitutes "work." Unlike physical labor, digital work doesn't always have set hours or locations. It can happen anywhere, anytime, so it's important for managers to understand how this impacts the process of rewarding their employees. Evaluating performance can be difficult for managers because they don't know where their team members are working, they can't see them at their computers or look over their shoulders.

The second challenge is figuring out what motivates employees who work remotely. This can be even more difficult than evaluating performance; after all, there isn't much to go by besides results and feedback from clients. So how do you motivate someone who isn't sitting across from you all day? One way is through creating a clear line of sight between what they do and its impact on your company's success.

What Do Digital Employees Really Want from Work?

What do digital employees really want from work? It turns out that what these workers want is very similar to what all employees want:

• A sense of purpose. The same way that most people want to leave behind a legacy and make a difference in the world, digital workers want to feel like their work matters and that they're part of something bigger than themselves.
• Freedom. The ability to choose when and where you work is key for many digital employees. They value autonomy over everything else. This includes working from home or other remote locations; having flexible hours; or being able to switch tasks during the day without having to ask permission first.
• Flexibility. Digital employees want control over their time so they can balance their professional and personal lives more easily than traditional employees do – especially if it means being able to spend more time with family or friends on weekends or evenings.
• Opportunities for growth. Digital employees like having opportunities to grow both personally and professionally; they just don't expect those opportunities to come with every paycheck as long as they're being paid fairly for each project they complete.
• Financial stability. While many digital employees are freelancers who set their own rates and schedules, some are full-time employees who are just as concerned about their salaries as any other employee would be.

How Can We Make Rewards Relevant for Digital Employees?

Rewards are one of the most important components of an employee's compensation package. It's also one of the most misunderstood and underwhelming things in most organizations. Why? Because most reward programs are designed with a focus on tangible products and experiences, such as cash, bonuses, paid time off and other physical awards.

Digital employees are different. They don't want to be rewarded with stuff they can't use or consume right away — they want instant gratification that helps them get more done. That's why digital rewards have become so popular in recent years: They're easy to earn and redeem for anything you want from an online store or service (think Amazon gift cards).

When it comes to rewards for digital employees, money is still important but there are other things you need to consider as well. For example, if you want to reward someone who works from home with more flexibility or time off, consider providing additional time off in exchange for longer hours during peak periods or particularly busy weeks.

In addition to monetary rewards, consider giving digital employees access to resources they might not otherwise have access to if they were based in an office — like conference rooms or meeting rooms — so they can collaborate with other people in your organization without having to travel long distances or drive long hours each week.

Takeaway: Digital employees are a new kind of worker and they need new kinds of rewards

We hope that this article has made you think about digital employees and their emerging roles in a new light. If you're a company owner, consider whether your organization's employee policies help or hinder your digital workforce. The way you reward is just as important as how you communicate, and both should reflect the realities of a changing world. And if you're one of these new employees, it's worth asking yourself whether or not your work is being fairly compensated. You might find that you have more power than you think.