For 43% of Britain’s working population, side hustles – ways of generating extra income (such as second jobs, freelancing, casual labour and odd jobs) – have become the norm.
According to data from finder.com, average income from these professional affairs is estimated to be around £207 a week or £900 a month, with around half of working men (49%) making money from side hustles, compared to 37% of working women. Millennials are earning the most from their side hustling with an average extra income of £1,208 a month, while more than two thirds of Generation Z (68%) also earn additional money this way.
During a recent episode of the Diary of a CEO Podcast, Professor Scott Galloway suggested side hustles are merely a distraction from an individual’s main job and primary source of income. Yet the trend looks likely to continue into the foreseeable future, so how can business leaders take precautions and ensure they set very clear boundaries?
First of all, it should be taken into account that despite some strong opinions on this issue, the impact of side hustles for full-time employment is not always black and white. Not all leaders need to be overly concerned about potential negative impacts – and wherever possible, can aim to be supportive given the volatile economic times we are living in.
Good leadership is often about compromise and when it comes to additional work, this means being willing to have open and honest conversations with employees about what is expected from their roles and responsibilities. If there are concerns about a side hustle having a detrimental effect on an employee’s performance, bosses need to be honest but also remain empathetic and willing to explore whether there is anything they can do to support their employees.
The empathetic approach may be less favoured by some leaders who see side hustles as a distraction from full-time working commitments; but given how popular side hustles have become with all generations as a means of supplementing their income, it is clear the cost of living is a key reason many people are venturing into gig working.
There are some key questions that we advise employers ask themselves before reaching firm conclusions about the pros and cons of any side hustle:
Ask yourself, what is your initial reaction to an employee taking on a side hustle? If your sentiment is leaning in a negative direction, why?
So long as a side hustle is not negatively affecting an employee’s performance in any way, they are permitted to have multiple jobs and there should be no problem. In some instances, side hustles are seen as a negative. For example, employers may see there is a conflict of interest if the side hustle is in the same industry, or could worry the employee may become distracted, less productive and risk burn out as they look to juggle a family, multiple jobs, and caring for elderly parents. Whichever direction your initial sentiment might take, it is important to be prepared to challenge your view and listen; as a leader it is your duty to encourage a growth mindset and welcome feedback from employees.
Do you believe an employee is disengaged as a result of a second job?
If there are no issues about having a side hustle in your employees’ contracts, performance should be measured on their primary job role. If you do believe it is impacting on their performance however, be certain to find out exactly what is the cause of the disengagement. Have a career coaching conversation with the employee to ascertain if you can provide internal opportunities for the individual that would give them fulfilment and job satisfaction.
Can the skills, ambition and entrepreneurial spirit of an employee side hustle present any advantages to your business that are currently being missed? Many employers do recognise side hustles can help employees to develop and acquire new skills that may be of benefit to their role, helping them to be more creative and bring ideas that are useful to the organisation. Definitely look for how the skills acquired are of benefit and how they can be channelled – as long as there is no conflict with their primary job.
Leaders must strive to provide a safe environment for employees to share their rationale for taking on additional work, being clear about the purpose and the benefit to them. They can ask open, positively challenging coaching questions and if necessary, outline any conditions to ensure there is solid understanding from both parties. It is also worth exploring the motivation behind an employee choosing a side hustle. While extra money may well be a factor, it could be that they are able to leverage a particular skill or another aspect of their talent. If that’s the case, be ready to look into how this could be adopted for their primary role to help drive their sense of purpose.
Sarah Hernon, Principal Consultant, Right Management
The post Double lives: how to manage employees’ ‘Bit on the side’ first appeared on HR News.