Is your employee doing side work? Employees work side hustles to earn extra income in their off-time and these are the types of side jobs they’re taking on.
Is Your Employee Doing Side Work?
It’s called a “side hustle.” And, the latest research shows about one-third of U.S. employees, approximately 57 million people, are working side hustles to earn extra income.
Should traditional employers be concerned about an employee doing side work, also known as “moonlighting?” Maybe, and for a variety of reasons. Perhaps the most important: More than 80 percent of Americans who currently have a side hustle are interested in doing it full-time, according to a recent SunTrust survey.
Are your employees doing side work? If so, what job(s) are they doing and how much are they making?
What Work Is Your Employee Doing On the Side?
AppJobs recently analyzed applications for side gigs to determine what the most popular side hustles are and how much they pay. The most popular side hustles are jobs that don’t necessarily require previous work experience, particular skills, or a degree, but still pay fairly well. Here are the top five most popular side gig categories according to the data gathered by Appjobs:
- Delivery (105,314 applications) pays an average rate of $17.10 per hour
- Freelance (95,866 applications) pays an average rate of $25.33 per hour
- Petsitting (21,620 applications) pays an average rate of $13.17 per hour
- Cleaning (14,143 applications) pays an average rate of $11.29 per hour
- Driving (11,199 applications) pays an average rate of $14.36 per hour
“Hundreds — maybe thousands — of companies are making it easy for Americans to make extra money,” says Kathy Kristof, an award-winning journalist and editor of $idehusl, a website that reviews and rates online platforms that offer ways for people to make money on the side. “We’ve researched, rated and reviewed more than 300 of these online platforms. Where Uber and Lyft get miserable scores with our formula, there are probably 100 platforms that provide engaging, well-paid opportunities that could provide $500 to $2,500 per month in additional income. These opportunities involve teaching, cooking, creating tours, writing, programming and renting out everything from your carpet cleaner to your swimming pool.”
Which Generation Makes the Most Money from Side Work?
The SunTrust survey looked at how much individuals in each generation demographic make working a side hustle and found:
- Millennials make an average of $10,972 from working a side hustle each year
- Gen Xers make an average of $8,791 from side work each year
- Baby Boomers make an average of $5,892 from side work each year
“Millennials often take on side hustles because they’re not earning enough to pay off their student debt and still have a life. Baby Boomers, who are retiring (or near retiring), are in the market because they feel like they’re not quite financially stable enough to leave the working world without some other way to make money,” says Kristof.
Should Employers Worry About an Employee Doing Side Work?
“Smart side hustlers are using their extra income to pay off debts and boost savings. That makes them a bit more confident about their ability to withstand a job loss. So, if their bosses are mean and miserable, they’re in a better position to walk away,” says Kristof.
“That said, what side hustles don’t give you are employee benefits and a work community. If an employer has a great benefits package and a positive, supportive working environment, most people won’t leave that — even if they have a side hustle.”
If you do notice a spike in your turnover rate, however, Kristof advises, “Ask yourself: How is my company faring in this changing workforce? Are we a place where people want to work, or are we just a place to collect a paycheck?”
“If you are nothing but a paycheck, you should worry — or, better, change. Ask yourself if you have tools in place to encourage your best workers to thrive. Are you talking to your workers? Do you know what they want/like/need from you? Are you listening? The freelance economy is bringing a sea change in the workforce. Those who are smart enough to adapt are likely to thrive.”