41% of Employees Working Side Gigs on the Clock, Raising Red Flags for Employers

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What do you get when you cross sky-high living costs with stagnant wages? Double-dipping workers, according to a recent Express Employment Professionals-Harris Poll. With nearly 90% of U.S. job seekers working side hustles, the lines between day jobs and passion projects are blurring fast.

Surprisingly, 41% of these multitaskers admit to clocking into two jobs at once, whether part-time or full-time. Despite concerns over focus and productivity, half of companies have no rules against it, raising questions about work boundaries and the future of hustle culture.

Without guidelines, the boundary between personal and company time shrinks, and employers raise questions about balancing flexibility with productivity. Meanwhile, the chance to diversify income and skills is attractive for employees, fueling a shift toward a workforce that values autonomy as much as stability.

“While it’s clear side hustles reflect ambition, drive and sometimes, necessity, they often come at the expense of focus during company hours,” said Bill Stoller, Express Employment International CEO. “The data shows that many organizations haven’t yet developed the framework to support employees balancing multiple commitments. This growing challenge requires a proactive approach to ensure both company and personal goals can thrive without compromise.”

Survey Findings

The poll says over half of hiring managers (55%) notice employees juggling side gigs during work hours, leaving 50% concerned that splitting time between jobs could lower productivity and reduce output.

Additionally, 47% fear it impacts employees’ focus and attention to detail, while 37% fear engagement in primary responsibilities might drop.

This shift has companies questioning how side hustles affect overall performance and team dynamics.

On the other hand, most job seekers think employees should be free to tackle side gigs during work hours as long as it doesn’t impact productivity. Workers feel balancing both can be beneficial, provided that focus and results for their primary role remain strong.

Over half of job seekers also feel it’s fair for employees to work a side gig on company time if their primary job doesn’t cover essential expenses. After all, the most common reasons job seekers cite for working a side hustle or gig during company time are to earn extra money or to increase savings.

The report also finds some employees pursue side hustles to enhance career prospects, with 32% learning new skills, 26% improving existing ones, 23% exploring new fields, and 16% gradually transitioning out of their current jobs.

Overall, the growing acceptance of side hustles among job seekers suggests a need for companies to reevaluate their policies and consider the potential benefits of a more flexible approach that balances employee aspirations with organizational goals.

What Employees Say

Maintaining a side hustle with other responsibilities means job seekers must make trade-offs. The report states that about 35% have less free time, 33% struggle to manage their time, and over 27% feel burnout.

Some job seekers also face challenges in running their own businesses, including investing their own money, fear of failure, the need to learn new skills, lack of benefits compared to traditional jobs, and paying self-employment taxes.

Are Companies Ready?

Among job seekers who haven’t worked on their side hustles during company hours, 28% indicate they might consider it in the future. The possibility of taking on side gigs at work becomes even more appealing if they believe they can do so without getting caught.

These responses reflect job seekers’ increasing prioritization of their financial needs or personal projects over adherence to workplace norms, especially if they think they won’t face consequences.

Notably, most companies do not seem prepared to deal with workers doing a side hustle gig during company time.

Only 36% of employed U.S. job seekers say their company’s code of conduct or policies prevent employees from holding more than one job during work hours. Meanwhile, 22% are unsure if such restrictions exist.

Most companies that find out an employee is working a side hustle during work hours respond in some way. The most common actions include verbal warnings or asking employees to complete side gigs outside company hours.

Around 42% of hiring managers say their company updated policies in response to double-dippers, and about half of job seekers believe companies should ask employees to limit their side hustles to outside work hours.

However, fewer workers support stricter measures like termination, demotion, or salary reduction in response.

What Can Be Done?

As inflation rises and debt burdens increase, many employees turn to side hustles during work hours to supplement their income. Instead of trying to prevent this trend, companies should take the opportunity to understand their employees’ motivations and challenges. Employers can create a supportive environment that encourages productivity by fostering conversation and addressing financial concerns.

Some creative solutions include:

Flexible Work Hours: Allow employees to adjust their schedules to better manage their time between their primary job and side hustle.

Skill Development Programs: Offer training sessions or workshops that help employees enhance skills that benefit their primary roles and side hustles.

Side Hustle Support Groups: Create informal groups wherein employees can share ideas and resources for their side projects, fostering collaboration and community.

Financial Wellness Programs: Implement programs providing financial education and resources to help employees manage debt and explore side income opportunities.

By adopting these approaches, companies can retain talent and foster a culture of understanding and support.

 

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