Skip to content
Side hustles seem to be a way of life for many employees these days.
For many employees, a little work on the side offers some extra financial security and can often help pay for the unexpected events and little luxuries in life. However, for employers, hiring someone with a side hustle can raise some very important questions about commitment, conflicts of interest, and legal considerations. This is particularly true in areas such as the financial world and accountancy where ‘a bit of work on the side’ is often easy to obtain.
The side hustle and employment
Employers are often wary of prospective employees with a side hustle for several reasons. We’ve listed a few of the more common pros and cons later in the article, so let’s focus down on one of the questions that comes up regularly.
Is it fair, legal, or even practical, to demand that a candidate/employee does not have a side hustle?
Well, what should ideally be a simple answer to that question is a little difficult to pin down. As a rule of thumb, (unless it is contractually not allowed) there is probably nothing an employer can realistically do to prevent a candidate from having a side hustle.
Some employers like to include exclusivity clauses in their contracts. These require employees to work solely for them as their employer. However, where it gets a little complex is the need to be seen to be both reasonable and proportionate with exclusive service. In short, there needs to be a very good reason why an exclusivity clause is necessary.
Non-competition and confidentiality clauses are also common, as they prevent employees from engaging in work that directly competes with their primary job or disclosing sensitive company information.
Enforcing all these clauses can be difficult, particularly the exclusivity one, so we always advise checking your position with a HR consultant. Ongoing employment law is their area, and they will be able to judge if you have grounds to include exclusivity in your contracts.
There is a further issue with these kinds of clauses though. While the non-disclosure and competition clauses are perhaps expected, the exclusivity clause may be viewed in a less positive light by a candidate. For many people, particularly those still early in their careers, the additional income their side hustle brings may well be needed to bolster their finances. Enforcing an exclusivity clause may therefore be off-putting to some candidates who are used to the second income.
Are there positives to having employees with a side hustle?
Depending on how you view it, it could be said that there are several positives and negatives to considering a candidate who maintains a second income. Not the least of these being the potential for enhanced Skills and Experience. Side hustles often involve learning new skills around, for example, business management, marketing and operations. These are ‘real-world’ skills that could lead to a wider understanding of an employer’s business needs and a more rounded team player in the workforce.
Juggling multiple responsibilities also requires discipline, so employees with side hustles are often highly motivated to be efficient and manage their workload effectively. Better workload management results in less stress and higher levels of job satisfaction. Both of which are major drivers of loyalty.
As we mentioned at the start, side hustles often produce a second, often very reliable, income reduce any financial pressures the employee is dealing with. While we are the first to admit that not everything is about money, we all know that a financially stable employee is more likely to be generally happy. That stability, combined with better workload management, leads to job satisfaction and an employee who is less likely to jump ship for a better package.
Avoiding the issues with side hustles
One major, and very understandable concern, is whether a prospective employee’s side hustle competes with the employer’s business. It goes without saying that if an accountant employed at a firm also offers tax services privately to the same type of clients, there is likely to be a direct conflict of interest. Other issues are possible around resources and potential breaches of trust when it comes to use of company tools and employer time.
All of the above should be negated to some extent by contracts and stating your expectations during the employment stage.
The scope and size of the side hustle can also be a concern. Prospective employers will naturally worry that an employee’s performance could start to decline due to exhaustion from their side hustle. If that source of second income results in a very heavy overall workload, then burnout and employee mental and physical wellbeing, could be a factor.
During the employment stage you will benefit from:
- Setting clear policies – Be clear and state any policies regarding secondary employment from the beginning of the employment process.
- Encouraging transparency – Give candidates the opportunity to disclose any information they feel relevant about side hustles.
- Setting clear performance expectations – Practically speaking, as long as an employee meets their targets and performs well, does a side hustle really matter?
Balancing your view on side hustles
There are many reasons to be wary of hiring a side hustle employee. Lower productivity through to the wellbeing of the team member are all genuine concerns. That said, the entrepreneurial spirit and work ethic that potentially goes hand in hand with this kind of self-reliance could be an asset to a career-focused worker. The skills that potentially come with a side hustle are certainly ones that most employers would welcome in their workforce.
So, yes, at the end of the day, legally, practically, and ethically, side hustles can raise questions, but the positives are also hard to ignore. Despite the potential for issues, with a careful employment process, clear onboarding, and good management, a candidate with a side hustle could turn into a real asset for the employer.