Side hustles. Many people love them, most employers don’t. When I asked twenty business owners how they feel about job candidates who have either started or claim interest in starting a business in their off hours, fourteen said they would think twice. The other six said they simply wouldn’t offer the candidate the job.
Three of my CEO friends have gone a step further, adding language to their company’s employment contracts banning side hustles.
Sound logical? Hardly. For one thing, a “no side hustle” clause is problematic to enforce, especially if the employee in question is an outstanding performer. (Imagine saying, “Salem, I know you’re our top salesperson. But that FBA business you’re running from your guest bedroom means we need to let you go.”)
A “no side hustle” clause is also problematic to enforce since the employee in question – or the entrepreneurial-minded job candidate you might not decide to hire – is also more likely to be an outstanding performer.
A 2021 study published in Academy of Management found that employees performed better at their full-time jobs when they spent the previous evening working on their side hustles.
Nor do they bring their side hustles to work; the study found employees with a side hustle were no more likely to think about, be distracted by, or even spend time on their side hustle while at work than non-side hustlers are to conduct a little online shopping, check out the football scores, or see what they’re missing on TikTok. (In fact, there’s evidence that people with side hustles are more focused at work due to the feeling of psychological empowerment that results.)
Data is great, but so is common sense. Apart from technical competence, think of the attributes you want your employees to possess. Initiative. Creativity. Problem-solving. Adaptability. Able to work with minimal supervision, while juggling multiple tasks and responsibilities. Eager to learn and grow.
Clearly your nine-to-five employees may possess those qualities – but people with side hustles do as well, almost by definition.
“But why would I hire a candidate,” a CEO friend says, “who seemingly wants to someday quit and run their own business, and maybe even compete with us?”
That question also sounds logical.
Or not. One study found that nine out of ten professionals in the MENA region are considering changing jobs this year. Granted, “considering” doesn’t mean “will.” Yet the same study also determined the average job tenure is 2.7 years, with an average employee turnover rate of over 20 percent per year.
Job-hopping has not only become normalised but is arguably more prevalent among top performers, since the best workers tend to have more options. That’s why smart employers lean into the changing nature of employment. Regardless of why – to be promoted, to land another job, or to turn a side hustle into a successful business – they know the best employees are eager to learn, grow, and develop.
As Eric Ripert, co-owner and executive chef of NYC’s Le Bernardin, a three Michelin star restaurant, told me, “Yes, we train people that potentially will be competitors or work for competitors, but other restaurants do the same. They train employees who eventually come here. Ultimately, those young chefs one day will become better than us. It’s a logical progression from generation to generation. We bring the brick, they step on it, they go higher.
“My generation learned from the talent and the generosity of our mentors,” Ripert said. “There will be many generations to follow that will do the same thing, and that makes us happy. It’s nothing to be worried about. It’s a natural part of life.”
Ripert knows some of his employees have side gigs. He knows some hope to eventually leave to launch their own restaurants. But he also knows they’re likely to stay longer at Le Bernardin if he gives them opportunities to grow and develop, and not just within the scope of his restaurant.
Just as smart bosses are willing to develop employees for the jobs they someday hope to land – even if that job may turn out to be with another company – smart bosses are willing to develop employees for the business they someday hope to run.
The skills they gain from the developmental opportunities you provide – and from their side pursuits – will make them better employees now. They’ll be more engaged. More energetic. More focused. More productive. And oddly enough, more loyal. Your employees only care about what you want them to do when know how much you care about them.
A great way to show you care? Prove you care about their futures – not just as workers, but as people.
Do that, and the employee or job candidate with a side hustle is likely to be even more engaged and productive, because we all perform better when our work has meaning.
To others… but just as importantly, to ourselves.
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