Discover the evolving landscape of executive side hustles in this snapshot overview. From shifting workforce dynamics to key company considerations, we explore the impact of this growing trend and what it means for businesses navigating the changing professional landscape.
Lately, something unexpected has been happening in the corporate world: more and more executives and employees are engaging in side hustles alongside their full-time jobs. What used to be seen as a bit taboo is now becoming surprisingly common and even accepted in many workplaces. According to recent studies from Harris Poll, a staggering 41% of U.S. job seekers admit to working on side gigs during their regular work hours, either part-time (24%) or full-time (20%) [1][2].
Here are five key areas companies should consider in light of the growing trend of executive side hustles.
The Driving Forces Behind Executive Side Hustles
Several factors contribute to the growing popularity of side hustles among executives and employees:
- Financial Necessity: The primary motivation for many is to earn extra money for expenses (61%) or to increase savings (51%) [2]. With rising living costs and stagnant wages, many professionals find it necessary to supplement their income.
- Skill Development: About 32% of those with side hustles use them to learn new skills applicable to their primary job, while 26% aim to improve existing skills [1]. This desire for professional growth and diversification is particularly strong among younger generations.
- Career Exploration: Some executives use side hustles as a way to explore new industries or fields (23%) or to gradually transition out of their current roles (16%) [2]. This reflects a growing interest in career flexibility and entrepreneurship.
- Work-Life Integration: The boundaries between personal and professional life have increasingly blurred, especially with the rise of remote work, allowing executives to manage multiple responsibilities more seamlessly. Meanwhile, the sharp rise in healthcare costs—projected by Mercer’s 2024 health and benefits report to increase by 5.4%—has intensified the focus on employee well-being. (Boyden, Blueprint for Change)
The Corporate Response
Interestingly, many companies seem unprepared to address this trend:
- Only 36% of employed U.S. job seekers report that their company's policies prohibit working multiple jobs during company time [2].
- Half of the companies surveyed have no code of conduct or policies against working on side hustles during work hours [1].
- This lack of clear guidelines has led to a range of corporate responses when side hustles are discovered:
- 37% of companies ask employees to limit side work to outside company hours.
- 28% issue verbal warnings [2].
- Some companies have updated their policies (42% of hiring managers report policy updates) [2].
The Generational Divide
There's a notable generational gap in attitudes towards side hustles:
- Gen Z and Millennial job seekers are more likely to support working on side gigs during company time (67% and 64% respectively).
- In contrast, only 44% of Gen X and 34% of Boomer/Senior job seekers share this view [2].
- This divide suggests that as younger generations ascend to leadership positions, corporate attitudes towards side hustles may continue to evolve.
Future Ramifications for Companies
The prevalence of executive side hustles presents both challenges and opportunities for companies:
- Productivity Concerns: 50% of hiring managers worry about lower productivity, while 47% are concerned about decreased focus and attention to detail [2].
- Engagement Issues: 37% of employers fear reduced engagement in primary responsibilities [2].
- Talent Retention: Companies that restrict side hustles may risk losing talented employees who value this flexibility.
- Innovation Potential: Side hustles can bring fresh perspectives and skills into the organization, potentially fostering innovation.
- Policy Overhauls: Companies will need to revisit and update their policies to address this new reality, balancing employee desires with organizational needs.
- Cultural Shift: The rise of side hustles may lead to a broader cultural shift in how work and careers are perceived, emphasizing skills and output over traditional notions of loyalty and exclusivity.
Adapting to the New Normal
To navigate this changing landscape, companies might consider:
- Flexible Work Arrangements: Allowing adjustable schedules to accommodate side hustles while ensuring primary job responsibilities are met.
- Skill Development Programs: Offering training that benefits both the company and employees' personal projects.
- Side Hustle Support Groups: Creating forums for employees to share ideas and resources, fostering a sense of community.
- Financial Wellness Initiatives: Implementing programs to help employees manage their finances and explore additional income streams responsibly [1].
As the workforce continues to evolve, the phenomenon of executive side hustles is likely to become more prevalent. Companies that can adapt to this new reality, balancing organizational needs with employee aspirations, will be better positioned to attract and retain top talent in an increasingly competitive job market. The future of work may well be one where the lines between primary careers and side pursuits are increasingly blurred, creating a more dynamic and entrepreneurial workforce.
Bibliography
1 “41% of Employees Work Side Hustle During 9–5,” Fortune, December 9, 2024.
2 “41 Percent of U.S. Job Seekers Juggle Side Hustles on Company Time, While Half of Employers Lack Policies to Prevent It,” Express Employment Professionals, October 2024.
