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There’s no denying that ‘side hustles’ are growing in popularity. The concept, which basically involves carrying out at least one other form of gaining income alongside a full-time job or a portfolio of jobs, is becoming not just a niche, but a standard, for many in today’s tumultuous workforce culture.
Currently, 39% of Americans are juggling a side hustle alongside their full-time employment.
And it seems that the concept is vastly more popular amongst younger generations, as Deloitte data states that this number jumps to 53% for Gen Z professionals and 50% for Millennials.
Needless to say, the implications for HR practitioners are profound. The concept isn’t going away, so how should HR be dealing with it? Is it acceptable for workers to share their effort between multiple jobs?
In this article, we’ll delve into the intricacies of side hustles, exploring their potential benefits and risks while providing actionable insights for HR professionals navigating this evolving landscape.
The rise of side hustles
The proliferation of side hustles has become a defining characteristic of contemporary employment trends. And for workers, it can be an extremely profitable endeavour; side hustlers who dedicate 12 hours per week to their business earn a median of $1,122 per month extra, on top of a full-time job, according to WorkLife data.
However, those who are convinced that a raise could prevent their workers from being tempted by the prospect of a side hustle should be aware, that almost 50% of people with a side hustle do it because they want to, not because of financial constraints. And on that note, three-quarters of people state that they love their side hustle as a key outlet for creativity.
It's unsurprising, then, that it’s predicted 83% of Americans will perform gig work by 2027, as reported by Luisa Zahou.
The potential benefits of side hustles
There are some key benefits for organizations who embrace the concept of the side hustle. In short, they offer employees a unique opportunity to cultivate transferable skills that enrich their professional repertoire.
Whether it's honing marketing acumen, mastering financial management, or refining time management skills, side hustles serve as incubators for personal and professional growth.
Engaging in a side hustle can also have positive implications for employee wellbeing by providing a creative outlet and a sense of purpose beyond the confines of their primary employment. Studies indicate that pursuing passion projects can alleviate stress and foster a greater sense of fulfillment.
Risks associated with side hustles
There are, however, several caveats and things to consider before you encourage side hustles within your workforce. HR practitioners must navigate regulatory frameworks to ensure that employees' side hustles comply with labor laws, particularly concerning working hours and potential conflicts of interest.
Vigilance is essential to mitigate the risk of breaching Working Time Regulations and safeguarding the integrity of the employer-employee relationship.
Employees involved in side hustles within the same sector or industry as their primary employment may also encounter conflicts of interest that pose ethical dilemmas. HR professionals must implement policies and procedures to address potential conflicts and uphold the organization's reputation and values.
Navigating the side hustle landscape
So, there's some positives and negatives to the concept. However, there are also some key things that you as HR need to keep in mind before you see yourself as prepared for the future of work. Here are some final points to consider.
Policy development: Establishing clear and concise policies regarding side hustles is imperative to provide employees with guidance while mitigating organizational risks. HR departments should collaborate with legal counsel to draft comprehensive policies that balance employees' entrepreneurial pursuits with the company's interests.
Communication and transparency: Fostering open dialogue with employees about their side hustles promotes transparency and trust within the organization. HR practitioners should create platforms for employees to discuss their entrepreneurial endeavors and leverage their experiences to enhance organizational effectiveness.
Flexibility and adaptability: Embracing the diverse career aspirations of employees necessitates a flexible approach to talent management. HR professionals should explore innovative career pathways, such as interim roles and fractional assignments, to accommodate the evolving needs and aspirations of the workforce.
