Side hustles and moonlighting: In a modern post-pandemic world, most companies have resorted to a somewhat hybrid or fully remote working model. This change has come with its ups and downs from a management and effectiveness point of view. Many people use the flexibility as an opportunity to boost their income, explore new interests, or develop new skills. But managing employees who may not regard their employment with you as the main priority can be tricky. That’s why having a side hustle policy is crucial.

What are side hustles?

Side hustles are additional jobs or projects people take on outside their regular employment. They can range from freelancing and small businesses to part-time gigs and creative projects. It can provide extra income and the chance to pursue passions and learn new skills. It’s important to note that even a non-profit job or project can be included. While side hustles can benefit employees, they need careful management to ensure they don’t interfere with their primary job responsibilities. Some people refer to them as moonlighting.

Why it matters

In a challenging economy, side hustles offer financial security. They also provide a creative outlet and a chance to explore interests that might not fit into your regular job. For many, side hustles are a way to turn hobbies into profitable (or non-profitable) ventures.

The need for a side hustle policy

A side hustle policy helps both employers and employees manage the balance between main jobs and extra work. It ensures transparency, prevents conflicts of interest, and supports employees in their entrepreneurial endeavours. Here’s how to create an effective policy.

  1. Set clear boundaries: Define what counts as a side hustle in your company. This can include freelance work, small businesses, or any income-generating (or non-income-generating) activities outside the main job. Clear definitions prevent misunderstandings.
  2. Establish approval processes: Create a formal process for employees to request permission for their side hustle. This process should include an evaluation of whether it could conflict with the employee’s primary job, use company resources, or create potential legal issues. Approval should be contingent on these factors.
  3. Manage conflicts of interest: Identify and address any conflicts of interest between the side job and the primary job. Make sure it does not interfere with the employee’s main responsibilities or use company resources.
  4. Provide time management guidelines: Set strict guidelines on when and how employees can engage with extra work. Emphasise that their primary job responsibilities must always come first and that side hustles should not be conducted during work hours. This ensures that the primary job remains the top priority.
  5. Respect intellectual property: Educate employees about intellectual property rights and obligations. Make sure they know not to use company resources or confidential information for their side hustles. This protects your company’s assets and promotes ethical behaviour.
  6. Promote financial responsibility: Advise employees to manage their finances wisely. Remind them to handle tax obligations and financial reporting for their side hustles responsibly.

Side hustles are here to stay. They offer financial security, skill development, and personal fulfilment. By implementing a clear policy, companies can support their employees’ entrepreneurial spirit while ensuring that primary job responsibilities are put first.

Actions to take:

Ready to create this policy for your company? Here are some quick actions to take:

  • Understand how many are engaged in side hustles and the nature of these projects by surveying your employees.
  • Create a clear policy for employees to follow by asking us to draft them.
  • Get policies right by reading more about them.
  • Ask us to hold a workshop to discuss the policy and explain it to your employees.
  • Join the Fast Commercial Contracts programme to sharpen up your drafting skills.