What is a Side Hustle?

A side hustle refers to any type of employment or business activity that a person undertakes in addition to their full time job. For many managers, the discovery that an employee has a side project can be unsettling. You might worry about their focus or their commitment to the company goals you are working so hard to achieve. However, a side hustle is often a response to the need for financial stability or a way to explore interests that fall outside of a current job description. It is a secondary source of income that generally occupies a smaller portion of an individual’s time than their main career.

Understanding this term is vital because the prevalence of side projects has increased significantly in the last decade. As a manager, you are leading people who are navigating a changing economic landscape. They may be looking for ways to pay down debt or save for a house. They might also be looking for a sense of autonomy that they do not yet feel in their primary role. Recognizing what a side hustle is allows you to have more honest conversations with your staff about their professional needs and their long term goals.

The growth of the side hustle in modern business

Side hustles are not just about the money. While the financial aspect is a major driver, many people engage in these activities to gain new skills. This can actually benefit your organization. An employee might start a small e-commerce shop and in the process learn about digital marketing, logistics, and customer service. These are skills they might not be using in their role with you but could become valuable assets as your business grows.

There are several characteristics that define this type of work:

• The activity is usually performed during off hours or weekends.
• It is often pursued with a high degree of personal passion.
• The income is typically supplemental rather than the primary means of living.
• It allows for experimentation with low financial risk.

By looking at it through a journalistic lens, we see that the rise of the gig economy has made starting these projects easier than ever. Platforms for freelance work and handmade goods have lowered the barrier to entry. This means more of your team members likely have or are considering a side project.

Comparing the side hustle to moonlighting

It is helpful to distinguish between a side hustle and the older concept of moonlighting. While they share similarities, the intent behind them often differs. Moonlighting is generally defined as taking a second job, often in the same field or a similar service industry, strictly for the additional paycheck. It usually involves a set schedule with another employer.

The differences can be summarized as follows:

• Moonlighting is often more about survival and meeting immediate financial gaps.
• Side hustles are often more about building something or exploring a creative outlet.

  

• Moonlighting usually involves working for someone else, while a side hustle is often self directed.
• Side hustles have the potential to scale into a full business, whereas moonlighting is usually static.

For you as a manager, moonlighting might present more immediate concerns regarding physical fatigue. A side hustle might present more concerns regarding mental bandwidth and intellectual property. Knowing which one your employee is engaged in can help you address the specific risks and opportunities associated with each.

Scenarios for managing side hustle activities

There are specific situations where a side hustle requires your direct attention. One common scenario is when an employee’s external project begins to compete with your business. If a staff member is offering the same services to your clients on the side, this is a clear conflict of interest. In this case, clear policies are necessary to protect your business interests.

Another scenario involves the use of company resources. You may find that an employee is using their work laptop or company software to manage their side business. This is where the line between personal growth and professional ethics becomes thin. Addressing this requires a straightforward approach:

• Establish clear rules about the use of company property.
• Discuss the expectations for productivity during work hours.
• Encourage transparency so that the side project does not become a secret.

If the side hustle is unrelated to your industry, you might find a scenario where the employee is actually more energized at work because they have a creative outlet. In these cases, the best course of action is often to support their growth while ensuring their core responsibilities are met.

Unanswered questions in the side hustle era

Even with a clear definition, many unknowns remain for leaders. We do not yet have a full scientific understanding of how side projects affect long term employee burnout. Does having a secondary passion project provide a mental break that prevents burnout, or does it add a layer of stress that leads to a faster exit from the workforce? This is a question you may want to observe within your own team.

Other questions to consider include:

• How do side hustles impact the intellectual property of a primary employer?
• Does the presence of a side hustle indicate a lack of growth opportunities in the current role?
• Can a side hustle be integrated into a professional development plan?

As you lead your team, these questions are worth exploring. Every business and every employee is different. By staying curious and focusing on facts rather than fear, you can navigate the complexities of the modern workforce. You can build a culture where people feel empowered to grow, whether that growth happens inside your walls or alongside them.