Are side hustles burning out your employees?

The rise of the gig economy has seen many employees taking on side hustles alongside their primary jobs. Employers increasingly recognize the benefits of supporting such entrepreneurial pursuits among staff members, including employee satisfaction, productivity and creativity improvements.

However, balancing core responsibilities and nurturing external ventures requires proper support structures. Organizations that implement policies to create an enabling work environment benefit from reduced turnover rates and minimized burnout associated with overwork. Here are some strategies you can adopt to facilitate harmonious integration of both worlds for your employees.

Why the prevalence of side hustles is increasing

Initially, the side hustle trend started because people wanted to find fulfillment and explore their passion through a business challenge, a creative outlet or extra income.

Increasingly, people are taking on side hustles because they feel it’s the only way to make it through the month. A Bankrate survey shows that 33% of adults with a side hustle need the money to cover everyday living expenses, while 27% use the money for discretionary spending.

Even people in careers you may think are unlikely to have side hustles are taking them on. The Nursing Beat found that out of 1,300 nurses, 50% earn extra income through a side hustle, and almost half of new employees plan to transition to making their side hustle their full-time job.

More than anything, side hustle rings alarm bells for the importance of creating work environments that are comfortable and supportive and reduce the chances of employees burning out.

Can side hustles lead to burnout?

Side hustles indeed can lead to burnout. Although most full-time jobs are eight hours a day, people with side hustles can work many more to keep their businesses afloat — especially when they need the money. In the Bankrate survey, 28% of side hustlers believe they may always need extra income to survive. However, the long hours and lack of rest can lead to burnout, which means less motivation and energy at work.

While side hustles may lead to burnout, they can also benefit employee wellbeing. In 2021, research by The University of Iowa discovered that engaging in side hustles led to increased feelings of positivity and enhanced energy levels, subsequently improving overall productivity in primary employment. An Academy of Management study comparing the likelihood for side hustles to decrease or increase work performance found that they generally improved it rather than created conflicts.

Reducing attrition for employees with side hustles

A study by Deloitte shows that out of 1,000 people surveyed, 42% left their jobs because of burnout. However, it doesn’t have to be that way. If employees feel they must continue their side hustle while working, supporting their needs and passions is in the company’s best interests.

Employees will likely be more satisfied at work when they feel free to pursue interests and life outside of it. An excellent way to encourage this is to change mindsets around rest and paid time off. Encourage people to take vacations and create a culture that appreciates and celebrates rest. They will likely feel more comfortable doing so if their bosses do the same.

Prioritize wellness in the workplace by placing comfortable chairs in break areas, adding plants or setting aside a quiet room where employees can meditate, pray or sit in silence. Tailor these places to your employees and their needs.

You can also improve satisfaction and commitment by encouraging employee engagement and creating courses, workshops or career development focusing on wellness. For example, DME reduced one of its client’s attrition rate from 30% to 9.8% with several strategies. One of them was implementing holistic wellness programs that address mental wellbeing, work-life balance and physical health. Another example is Thomson Reuters, which instituted a mental health day in its calendar in 2020 and added the meditation app Headspace as part of employee benefits.

You may also need to make structural changes to contracts, agreements or working conditions. Christina Maslach and Michael P. Leiter, authors of the book “The Burnout Challenge,” suggest improving the fit between employees and the workplace. Mismatches can cause burnout, and the key is to find a solution specific to your company.

They give an example of the U.S. Air Force’s project to create the perfect cockpit for its fighter jets. It attempted to build a flawless cockpit based on the average male physique and found that no one fit all the measurements. It was redesigned to be more accessible. Individuals could then customize the cockpit to their comfort.

Business owners and HR professionals may likewise find it worthwhile to be more flexible regarding employee’s psychological qualities. This can include allowing various work arrangements, like having one or two remote days a week, incorporating flex time or allowing employees to set their own schedules.

How to support burned-out employees

While the goal is to prevent burnout, you should be able to tell the signs when it does happen. There may be increased absenteeism, reduced productivity and more errors, ultimately leading to lower profits. Employees may experience physical discomfort like headaches, insomnia and gastrointestinal issues.

Related: New report finds employee burnout reached 57%

You will then need to sit down with the employee and check in to see how you can best support them. They may not share that they have a side hustle, but knowing that their primary employer prioritizes their wellbeing can make them feel valued and supported.

Make it a top priority to have regular one-on-one check-ins to gauge employee stress and brainstorm solutions to issues. “Are you feeling any mental blocks or tired lately?” “How can I support you?” and “What would make this easier?” are some questions you can ask. You can also conduct surveys to determine if pressing issues could lead to burnout. It may help to make these anonymous so people can answer as honestly as possible.

You may need to reassess workloads or create employee support groups. According to the American Heart Association, changing workplace policies like these can reduce burnout and increase wellbeing by up to 40%. Job satisfaction is linked to lower turnover rates, so companies should implement policies prioritizing employee wellness.

Supporting the side hustle to reduce employee burnout

In today’s dynamic labor market, where multiple income streams have become commonplace, businesses must evolve to accommodate their employees’ needs beyond traditional boundaries. Creating a supportive work environment conducive to balancing full-time positions and side hustles offers numerous advantages, ranging from higher retention rates to diminished cases of burnout.

Organizations should view this trend favorably, embracing novel policy-making and management practice approaches to foster growth opportunities within and outside office premises. Cultivating a culture centered on trust, empathy and open communication will yield dividends beyond mere figures. Satisfied employees lead to thriving enterprises.