Most companies would love to have a coterie of workers who dedicate their lives to their jobs, sacrificing personal hobbies and relationships alike to pursue their passion for work like a TV detective.

But such workers may well be a relic of the past given the growing tendency of younger workers to engage in one or more side hustles, or alternative sources of income and uses of their time.

Moonlighting in the 21st Century

“Generational shifts, an uncertain economy and a dynamic workplace situation mean the typical career of a young worker today looks very different than years ago, pre-pandemic,” writes Alex Christian in an article for BBC Worklife. “Gen Z is moving into the workforce in significant numbers: Bureau of Labor Statistics (BLS) data shows there were 21 million employees aged 16 to 24 in the US by July 2022, with the employment rate rising 54.4% year-on-year. And as they age in, the side hustle will likely grow in popularity and acceptance. Over time, pursuing passion projects and multiple streams of income may well prove to be one of the most significant differentiating factors of the youngest generation in the workforce.”

Understanding the prevalence of side hustles among younger workers is crucial for employers when considering what, if any, company policies need to be in place to account for the growing practice.

Managing Employee Side Hustles

For example, should companies have policies against employees holding jobs or running small businesses outside of their work with the organization? Unless there’s a compelling reason to enforce such a restriction, the business may be effectively turning away large numbers of qualified (and demonstrably ambitious) staff who represent the future of a labor force that’s already in high demand.

At the same time, companies may have legitimate concerns about confidentiality, competition, and impact on employee performance. These are all important considerations, but may be addressable without a wholesale prohibition against employee side hustles.

The work world—and employee values—today are very different than they were just a few short years ago. Employers need to exercise caution in attempts they make to manage employee activities outside of work—even if those activities also include work, for someone else.

Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.

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