Employee side hustles are becoming more accepted in the workplace, especially with the prevalent message that we need to have multiple sources of income. But employee side hustles are a symptom – a warning sign – that there is an unmet need in your company’s culture.
Sometimes employees have side hustles because they cannot make ends meet with their current salaries. Other times employees have side hustles because they want to serve a greater purpose or utilize a different skill set. Whatever the reason, the onset of a side hustle usually also starts a timer on how long that employee will stay with your company. A side hustle is an eventual exit plan.
“Throughout my decade in middle management before starting BreakWell,” explains Founder Tara Kraus, “I observed this with my team. If someone went back to school part-time or picked up a side job, he or she was creating a new path for the future. And if we didn’t have a way to support that new path, we would lose that employee within 6 to 12 months. This is a prime example of poor career well-being – one of our 8 pillars of corporate well-being.”
Tara adds, “The truth is…wanting to grow personally or professionally is human nature. Instead of supporting side hustles and the burnout that comes with it, aim to keep good employees in your company by making personal and professional growth accessible as part of your culture.”
Multiple streams of income, polyworking, side hustles – they are on a rapid uptick in our society today, becoming a norm instead of an anomaly. In 2024, 39% of working Americans have a side hustle, according to this MSN article.
The Truth About Employee Side Hustles
Rather than focusing on a single job in their field, polyworkers usually aim for differing but complementary professions. This can look like one salaried position plus one or more side gigs. It can alternatively involve multiple side gigs or one larger freelancing/contract job with one or more side gigs.
Several current circumstances contribute to the “need” for multiple streams of income or employee side hustles.
- The cost of living and the cost of goods have increased dramatically.
- The job market has become more competitive.
- Artificial Intelligence (AI) is replacing some jobs and changing the scope of other jobs.
- Changes in technology and social media have made it easy to do side gigs.
- Society is making us feel like we need multiple streams of income to survive and be wise.
- Technology has made us more “attention deficit”, desiring to do multiple things.
- We know it’s possible now and crave flexibility to create work-life balance to lower stress and increase joy in our lives.
But polyworking, or employee side hustles, poses many problems for your business’ and your employees’ well-being.
Problems That Come With Polyworking
Side hustles can help employees make more money and pursue their passions in the short run, but polyworking might do more harm than good in the long run.
Companies Suffer From Employee Side Hustles
If your company has or supports employees with side gigs, your company may:
- Suffer more employee turnover due to burnout, which can cost your company 1.5-2x his/her salary per builtin.com.
- Face liabilities or legal issues due to their burnout from working multiple jobs.
- Struggle with decreased internal communication.
- Experience decreased productivity.
- See an uptick in errors.
- See an uptick in employee tardiness, sick days and healthcare costs.
- Suffer lower employee engagement and lowered morale or even a toxic culture.
Employees Suffer From Side Hustles
When taking on multiple jobs, individuals may:
- Have a harder time finding employment or getting promotions (if managers see polyworking as a red flag).
- Experience burnout.
- Perform at a lower level.
- Encounter more health problems.
- Feel less productive or purposeful. (One Paychex survey found that single-job workers are 44% more likely to feel productive than polyworkers.)
- Experience more busyness, and less time to rest or be present with family.
- Struggle with a lowered sense of commitment and loyalty (and stretched too thin).
Instead of being swayed to support or accept polyworking, create a single-job culture that satisfies your employees to bolster the well-being of your business and your employees –a win-win!
How to Satisfy the Side Hustle Cravings in Your Company
“First, it’s critical to acknowledge that as individuals, we naturally go through stages in our careers that often correlate with stages of our personal lives. Sometimes we want to grow,” remarks Tara Kraus. And other times, we want to glide.”
If you are raising kids at home and caring for aging parents, you might want to glide. If you are starting a new career or recently became an empty nester, you might want to grow.
The side gig economy is expected to include as much as 50 percent of the U.S. working population by 2027, according to Business Wire. But your company doesn’t have to be part of these statistics – or you can at least minimize your part in the trend.
The 40-hour work week is getting the squeeze because employees are fed up and looking for more balance and flexibility.
You can accommodate those desires while doing what’s best for your business.
Consider these tactics to retain good, satisfied employees who don’t feel the need to take on side gigs.
- When hiring, ask about their other jobs and intentions. Discuss boundaries and what creative outlets or growth opportunities they want.
- Hire enough staff and don’t stretch employees too thin.
- Offer better pay and benefits, including paid time off.
- Provide the personal and professional growth opportunities they desire, including how to use AI in their current jobs if applicable.
- Establish a culture of trust and employee care. (Check out Employee Care is Your New Solution for Employee Attraction and Retention).
- Nurture a culture of community and collaboration.
- Create and regularly adapt a holistic well-being plan based on your employees’ desires and changing stages of life, not on assumptions.
Tara insists, “The biggest problem I have seen during my middle management and BreakWell years is that companies try to implement wellness programs that are cookie-cutter instead of holistic well-being programs that are customized to employee feedback and business goals. This is exactly what inspired me to create BreakWell. I want your business and employees to thrive!
Employee side hustles are likely here to stay. You can take steps to support this polyworking concept inside your business. But there is a more sustainable and nurturing approach. Distract your employees from pursuing side gigs by fulfilling more of their needs as part of your company’s culture!
Schedule your free consultation to discuss this more holistic, sustainable approach with Tara here!