How To Manage Employees With Side Hustles

Nowadays, side hustles have become more than just a trend—they're practically a way of life. It's rare to find someone who doesn't have something on the side, whether it's selling handmade crafts online, using their cars for uber / ridesharing, or taking on freelance tech gigs. In an era where the cost of living continues to rise while salaries and wages remain stagnant, the hustle mentality / culture is becoming increasingly widespread.

While the primary motivation for many people to take on side hustles is to earn extra income and meet financial goals, others do it for different reasons such as developing new skills, pursuing a passion project, or simply indulging in a hobby. Regardless of the motivation, side hustles have become a means for employees to take better control of their finances and pursue their personal interests outside of their traditional 9-to-5 jobs.

But as more employees take on other gigs, it begs the question: how do they affect employers, and what should companies' stance or policies be regarding employees' side hustles? In this article, we’ll discuss key considerations and challenges of employee side hustles, and how employers can effectively manage employees with side hustles.

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Key Things to Consider Before Addressing Employee Side Hustles

Before you decide on your stance or draft policies regarding your employees' side hustles, you must carefully weigh some important considerations. While side hustles can pose potential challenges and conflicts that need to be managed effectively, they also bring benefits such as increased employee satisfaction and creativity.

Benefits of Employee Side Hustles for Organizations 

Employees' side hustles can have numerous positive implications for both individuals and organizations. Some of these include:

1. Improved Creativity and Innovation: Side hustles provide employees with opportunities to explore new ideas and creative pursuits outside of their regular job. This exposure to different experiences and perspectives can inspire them to find better ways to tackle challenges in the workplace. 

2. Skill Development and Growth: Side hustles enable employees to develop their skills. Whether it's mastering a new technology or adopting new business strategies, employees can learn more effectively and grow professionally through their side hustles.

3. Entrepreneurial Mindset: Employees with side hustles often develop an entrepreneurial mindset, making them more resourceful and resilient. These qualities can be highly valuable in the workplace, as employees may demonstrate greater initiative, problem-solving abilities, and adaptability in their roles.

4. Expanded Networks: Employees with side hustles are more likely to interact with diverse communities and clients outside their primary job network. As a result, employees may develop broader networks and relationships that can bring new opportunities, insights, and valuable connections to the organization.

Challenges of Employee Side Hustles for Organizations 

In order to develop clear policies and guidelines for employee side hustles, you need to fully understand the potential challenges. 

1. Impact on Productivity and Performance: While many employees boast of their ability to multitask, juggling different tasks within the same role or organization is different from managing tasks across multiple jobs. The latter is more stressful and can affect how much employees get done and how well they do it.

2. Conflicts of Interest: Employees engaged in side hustles may have gigs that directly compete with your business interests. Even if the side hustle isn’t a direct competitor, there is still a risk of conflicts of interest or intellectual property issues arising. For instance, an employee may use some trade secrets gained from their primary job in their side hustles, posing ethical and legal concerns for your organization.

3. Time Management: Effective time management is essential for employees to succeed in their primary job. However, the demands of a side hustle can disrupt your employees’ schedules or availability. This can lead to more missed deadlines and communication issues or gaps. 

4. Employee Burnout: Balancing multiple commitments can increase the risk of employee burnout, which can have detrimental effects on morale, productivity, and overall well-being. This is dangerous because employee burnout can have ripple effects on the entire team and cause increased absenteeism and poor team collaboration. 

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How to Manage Employees Who Have A Side Hustle

Here are five tips for effectively managing employees who have a side hustle:

Encourage Open Communication

Create an environment where employees feel comfortable talking about their side hustles. When employees share this information, it helps you understand their needs better and offer the right support. 

Set Clear Expectations

Clearly outline job responsibilities, targets, and schedules. This clarity helps employees manage their time effectively and know what is expected of them. By communicating rules or boundaries around work hours and availability, you make it easier for employees to balance their side hustles with their main job responsibilities.

Promote Work-Life Balance

Offer flexible work arrangements to create space for employees to focus on side hustles and other aspects of their lives without sacrificing their performance at work. It shows that you value their well-being and support their pursuit of a healthy, balanced lifestyle.

Provide Learning Opportunities

Employees who pursue side hustles for growth and learning will appreciate opportunities for skill development beyond their current role. Providing training and development programs in various areas can eliminate the need for a side hustle while boosting employee engagement and satisfaction.

Offer Better Benefits

If you can’t increase salaries yet, you should focus on improving your perks and benefits to ease the cost of living for your employees. To do this without breaking the bank, consider using an employee benefits platform like Motherboard, which offers a range of perks and benefits that cover family care, health & wellness, food & groceries, utilities, transportation, and more. You can choose to create and manage these benefit plans for your employees or, for personalization, give them the ability to choose and purchase the benefits they actually need.

With Motherboard, you can maximize your benefits budget and save on unused benefits while supporting your employees' financial well-being.

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