Should Your Employees Have A Side Hustle?
By Perminus Wainaina,
A few weeks ago, a client reached out to us for HR consulting support. He was uneasy about one of his team members. He told me the employee was never late, left exactly on time, and always met his KPIs. He couldn’t fault his work, but something felt off. He suspected the employee was running a side hustle, though he had no proof.
Lately, I’ve had similar conversations with employers across different industries. What once seemed occasional is now a clear trend. Your staff could be selling clothes or shoes online. Some might be operating an egg trolley in the evenings. Others are doing academic writing, running digital gigs, or offering freelance services, all from their phones.
Side hustles are no longer an exception. They’ve become part of today’s working culture. So the real question isn’t whether side hustles exist. They do. The real question is: Should you allow them? Or is it time to set clearer boundaries within your organisation?
Understanding the Rise of Side Hustles
Before forming a position, it is important to reflect on why your employees are increasingly embracing side hustles. While financial gain is an obvious motivator, the reasons extend beyond additional income:
- Pursuit of Passion
Your employees have talents or interests, photography, writing, and baking, that bring creative satisfaction and mental well-being. - Desire for Security
In an unpredictable job market, side hustles offer a sense of financial safety in case of job loss or sudden change. - Need for Supplemental Income
With the rising cost of living, a single salary may no longer be enough. Employees are seeking ways to bridge that gap. - Cultural Normalisation
Today, having multiple income streams isn’t just common, it’s almost expected. It’s no longer seen as disloyal, but practical.
What This Means for You As An Employer
Side hustles, in themselves, aren’t always the problem. Often, the deeper issue lies in outdated policies and a lack of clarity. As an employer, ask yourself:
- Are You Offering Competitive Compensation?
Employees who feel well-paid are less likely to seek extra income elsewhere. - Do You Have Clear HR Policies in Place?
Contracts should clearly address side engagements, especially around performance, conflict of interest, and confidentiality. - Are You Encouraging Open Dialogue?
Conversations around side hustles should start early, ideally at the hiring stage. Where necessary, written declarations can help protect both the employee and the organisation.
Instead of resisting the trend, take a proactive approach. You can support innovation while still protecting your business interests. Consider:
- Reviewing and updating contracts to reflect the modern workplace
- Setting clear expectations around external work
- Evaluating staff based on KPIs, not assumptions
- Creating a culture where transparency is encouraged, not punished
Side hustles aren’t the problem; unclear boundaries are. Today’s employees value autonomy, but they also respect structure. The goal isn’t to shut down side hustles, but to manage them wisely. So instead of asking whether employees should have side hustles, the real question is: is your organisation prepared to navigate them effectively?
Want to know what to include in your HR policies? Watch our YouTube video, where we break down the key guidelines every business should have and how to implement them effectively. Watch now and learn!
>>> Human Resource Policies Service
