The pros and cons of having a side gig. Is it worth the extra effort?

53% of Generation Z, 50% of Millenials and 40% of Generation X members – according to an April 2023 Bankrate survey of Americans, as many of those employed are also working outside the workforce. More significant, however, is the fact that as many as 44% of those surveyed say they will always need a side gig. What is the reason for this? Americans earning extra money believe they are being underpaid, which is the main reason for looking for off-the-job options. Still, such action on the part of employees comes with significant consequences for their primary employer. Below we discuss the most important sides of this phenomenon (both positive and negative) while considering how companies can (if necessary) combat it.

What are the extra income activities also known as side gig?

Additional gainful employment is work performed by a person outside the regular hours of employment – that is, during free time on weekdays or at the weekends. It can involve performing various activities, depending on the employee’s skills and abilities. Naturally, most often employees do it to increase financial resources (this is visible nowadays due to the ongoing economic crisis), but often also to develop their passion or to gain experience in an area that can provide adequate prospects in the future. The most popular forms of this type of work are presented below:

• Freelancing or own business – doing freelance work in areas such as copywriting, graphic design, programming, translation or Internet marketing,
• Trading activity – selling products or services locally or online (e.g., on such platforms as Etsy, eBay or Amazon),
• Consulting – providing advice or consultation in areas in which one has expertise or experience (e.g., as a lawyer, life coach, fitness trainer or financial advisor),
• Training – organizing workshops or courses in areas in which you are an expert and which are most often not related to your full-time job (such as cooking, yoga or programming courses).

Are extra income activities good for the employer?

It would seem that an employee’s leisure activities are outside the interest of their primary employer – and that’s probably the case, as long as the extra income-generating activities don’t translate (negatively) into productivity during the regular eight hours of work. Below we describe why, concerning an organization where a person is employed on a full-time basis, this phenomenon has two sides.

Pros of side gig

A side gig is certainly associated with positive results for the employee, increasing his financial opportunities. But are there such effects for the employer? As much as possible – first of all, because additional earning activities increase the employee’s opportunities for development. Further experience, whether similar or different from everyday work, is a chance to boost knowledge, improve hard or soft skills or make valuable contacts. Having employees with different skills and experience can increase the team’s flexibility or enable it to solve more difficult situations.

Cons of side gig

While additional gainful employment undoubtedly has a positive impact on both parties, one can also see its negative impact on the employee, which can translate into how he or she functions at work – and thus the entire organization. After all, sometimes a side gig can be extremely demanding and time-consuming, translating into a lack of rest for the body. The lack of rest, in turn, is associated with things like fatigue, sleep deprivation, reduced creativity or productivity – effects that no employer wants.

How to combat the negative impact of having a side gig?

Undoubtedly, any person who works outside of his or her full-time job should properly balance additional gainful employment with his or her main job or other commitments to avoid overload and burnout – that is, consequences in both physical and mental health. However, she may only sometimes be able to do this on her own and will need help from her supervisor. Some strategies to effectively combat the negative impact of the side gig are outlined below.

1. Have a frank conversation with the employee – ask the people you hire what extra income-generating activities they have, and together consider how they might affect their work.
2. Set clear expectations for the employee’s time, productivity and availability – agree with the employee how much time to spend working, what goals and expectations are for the job, and how he will keep informed of his commitments.
3. Offer flexibility – consider offering employees flexibility in working hours or how they do their work to help them balance their primary and side jobs.
4. Create a positive work environment – employees who feel appreciated and supported (but above all adequately compensated) are less likely to seek additional gainful employment. In this regard, responding to the economic situation (e.g., increasing salaries by the rate of inflation) may be particularly necessary.

Having a side gig – summary

It’s crucial to remember that extra paid work can become a positive experience for employees, especially in terms of developing necessary skills – and by extension, for your company. Exactly what the effects of your employee taking on side work will be, on the other hand, depends on many, varied factors – starting with a person’s age (which affects the length of the recovery process), the degree of burden of regular and residual tasks as well as character traits (sense of responsibility). Try to approach employees individually in this regard, support them rather than immediately focus on taking them away from performing side gigs – because such tactics will work against you in the end.

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