In a survey carried out by insurance provider, Aviva, it was found that one in five Brits have started a side hustle since March 2020. Popular side hustles included selling handcrafted products, freelancing, taxi driving, and one of the newest forms of income stream, becoming a social media influencer.
Reasons cited for starting a side hustle range from needing to make ends meet and pay off debt, through to following a dream or indulging in a passion project for stress relief. Additionally, some individuals, having poured years into roles or organisations that simply disappeared under the cloud of Covid-19, are choosing to create multiple income streams for an added sense of security, should the rug ever be pulled from under their feet again.
There is much debate amongst Employers as to whether side hustles should be supported or discouraged. So for this month’s blog, we will be sharing a few notable benefits of, and concerns relating to side hustles.
The Benefits
Happy Employees
Many individuals run side hustles, not only for extra money, but for enjoyment, or to engage in a passion. Not all passions pay a full-time wage, so being able to engage in those activities as a side hustle can boost wellbeing and take the edge off what may otherwise feel like a daily grind, no offence intended! The result – happy and content Employees and greater Employee retention.
Improved Wellbeing
Those who work in high pressured roles, or jobs that bring a significant amount of stress, often benefit from having a side hustle in something that they enjoy and find relaxation from, bringing them a much-needed release outlet, stress relief and ultimately, staving off burnout. Again, this is a benefit that also contributes towards greater Employee retention.
Creativity
Having a side hustle often means that an Employee is able to engage in skills and use parts of their brain that may not otherwise be used in their main role. This opens the door for greater creativity, in everything from product design through to process management. Employers will benefit from those able to bring that same creativity back into the main workplace.
Identifying Character Traits
Starting up and running a side hustle takes hard work, innovation, problem solving skills, good time management, entrepreneurship, and a driven, self-starting mindset. These are typically the types of characteristics an Employer would look for in a candidate for a leadership or managerial role and are therefore wonderfully transferable.
Learned Skills
Running a side hustle often means that Employees have to quickly learn useful skills surrounding business operations and management. Bringing these transferable skills into their main workplace could help them to perform better in their main Employment which can only benefit their Employer and colleagues.
Introducing Connections
An Employee may come into contact with a variety of companies and clients, and build useful business relationships in the process of running their side hustle. These are connections that they may one day introduce to their main workplace, in terms of services needed, opportunities to collaborate, or even as candidates for roles.
While it is admirable to see individuals taking steps to better manage their finances, utilise their talents and pursue long-held desires, the popularity of the side hustle does require Employers to be wary of a few things.
The Concerns
Employee Performance
Working additional hours on a side hustle may sap energy and affect concentration, potentially compromising an Employee’s performance, and taking them over a 48 hour working week. Problems can arise if an Employee is keeping a side hustle secret – a potential issue if said secret side hustle is having a detrimental effect on their ability to carry out their main job. In these cases, disciplinary procedures may be instigated.
Working Two Jobs At Once
Remote working Employees may find that they are now in a position to work more than one job at a time. However, it is almost impossible for the human brain to give 100% to more than one project at a time. As a result, performance may decline, and there is the further concern that an Employee, having recognised this difficulty, may dedicate more time to their side hustle than their main role, during their normal hours of Employment. Working two jobs at once is likely to be a breach of the terms of their Employment Contract, which can lead to the instigation of Disciplinary Procedures where they have not sought prior permission to do this.
Adequate Rest
If an Employee works extra hours on a side hustle, they may not get sufficient rest, leaving them depleted to a point that they put themselves or others at risk while carrying out their main job. Employers have a responsibility for the health, safety and welfare of their Employees, so if a risk is identified, the Employer may need to ask the Employee to reduce their hours on the side hustle or their main job, where this can be accommodated.
Use of Company Property
Employers may be concerned about Employees using company materials or equipment to carry out their side hustles (for example, selling handcrafted products made with company materials, or ‘borrowing’ company supplies to stock their home offices). Where it is known that someone has a side hustle, it may be sensible to include some additional wording in their Employment Contract or the Employer can include some words in all Contracts.
Direct Competition
If an Employee is working a side hustle within the same sector as their main Employer, there is the concern of being in direct competition. This is of particular concern if the Employee has access to data or clients that they can use to serve their side hustle, and ultimately profit from. This action is usually in forbidden as part of the Contract of Employment, and therefore could result in disciplinary action.
Potential for Reputational Damage
Another concern is that an Employee may run a side hustle that sends a message in direct conflict with the views of the main organisation they work for. For example, an Employee may use their side hustle’s social media pages to post views or discuss topics that do not reflect the views of their Employer. This risks damaging the Employers’ reputation and image.
Be Prepared for Side Hustle Success
While many engage in side hustles to top up their monthly income, some become so successful or find such contentment that they choose to resign, in order to turn their side hustle into their main hustle. This will be a positive achievement for the Employee, but it does mean that the Employer will need to recruit a replacement, a process that is not necessarily quick or easy.
Conclusion
As with most things in work and in life, balance is essential. Employers need to uplift their Employees, while also preserving their organisations.
Where a side hustle provides a much needed boost to income, improves wellbeing or provides a sense of happiness or purpose, it is undoubtedly a positive move to support such endeavours. But it is equally important to ensure that Employees know what is expected of them, that they do not breach company rules, pose any form of operational risk, or thrive off of the use of company data or materials.
Do you need help in finding the right balance in your organisation and/or do you want your Employment Contracts amended to include side hustles? If so, we are here to help. Please don’t hesitate to get in touch with us.