Photo by Just Another Photography Dude
If you received an inheritance, have passive income, or won the Powerball, yay you! But plenty of people seek additional employment to pay bills. Whether you refer to it as a side hustle, moonlighting, or a gig, as of April 2023, 39% of Americans have one. Why do employees work side gigs? Why are employers concerned when an employee has one? What can both do to alleviate those concerns?
Why Employees Work Side Gigs
Finances – The cost of living keeps going up and as of March 2023, only 87% of full-time private industry workers had access to medical care benefits. Self-funding health insurance, retirement, upskilling, etc., may not be possible with income from one full-time job.
Passion – The gig economy offers possibilities for personal growth. For example, maybe you are a teacher who loves baking and you have a side hustle making special occasion cakes. Experiments combining flavors and coming up with original designs is a creative outlet.
Development – A side gig is an opportunity to develop additional skills. For example, maybe you are a software developer who loves writing and you have a side hustle blogging for a website. Sharing your knowledge can establish you as a subject matter expert.
Why Employers Get Concerned
Conflict – An employee may end up working on projects that directly compete with yours. This results in divided loyalty and compromises the employee’s ability to prioritize and dedicate their full attention to the work they do for you. There is a risk that the knowledge, skills, or innovations they gained working for you could contribute to a competitor’s success.
Liability – If an employee’s side gig is in a similar industry or involves activities that could potentially harm the company’s reputation, you may be responsible for any consequences including financial repercussions.
Productivity – Employees with side hustles may find themselves stretched thin, leading to a decline in overall job satisfaction and eventually burnout. Side gigs may create tension among team members, especially if some employees feel burdened with extra responsibilities or perceive others as not fully committed to the team’s goals. This makes retaining your employees difficult.
How Both Can Come Together
Communicate – Employers should establish clear boundaries and written guidelines to ensure side gigs do not interfere with job responsibilities, deadlines, or the cohesion of the team. This will help maintain trust and prevent misunderstandings. Speaking openly of the side gig in regular check-in meetings promotes accountability.
Motivate – Employers can reap certain advantages from employees with side gigs. So, it’s crucial employers understand why their employee has one. Employees actively pursuing their passions outside of work find renewed inspiration and creativity. This positively impacts their job performance and helps employers retain a diverse and engaged workforce.
Innovate – Employers can embrace the concept of “intrapreneurship.” When employees channel their entrepreneurial spirit within the organization, employers can grow a dynamic and forward-thinking workplace culture. Employees with side gigs often bring new skills and experiences to their primary roles, fostering an environment of innovation and adaptability within the workplace.
Employers have legitimate reservations about their workforce engaging in side gigs. It’s essential to recognize that not all side gigs pose a threat to the employer-employee relationship. The nature of work evolves daily and business moves at the speed of trust. Tools like communication, empathy, and flexibility are necessary to help your organization thrive.
Do you have both a full-time job and a side gig? How do you make that work? Please share in the comments.