Why Employers Should Support Employees in Pursuit of Side Businesses
Entrepreneurship has become increasingly popular, as it enables individuals to operate within their areas of expertise and supplement their income. Although some of us celebrate business owners who start their own ventures while working full-time, many employees feel the need to conceal their side businesses from their employers, who may see them as disloyal, distracted, or non-committal. Employers often require employees to disclose their side hustles and may even have policies requiring approval of those businesses, fearing conflicts of interest or violation of non-compete agreements.
In 2023, following the pandemic, massive layoffs, inflation, and a perplexing economy, it is puzzling that employers have not embraced a more flexible approach to side businesses and non-compete agreements. It is now more critical than ever for people to establish their own sense of financial security and independence, which employers no longer provide. I think this is one of the main reasons over five million businesses were started in 2022 (Census Bureau). People start side businesses to increase income stability in case of layoffs or toxic working conditions, to do more meaningful work, to utilize dormant skills and develop new ones, to provide flexibility and control over their schedules and to be able to make ends meet.
By denying employees the opportunity to pursue their own businesses, employers are restricting their potential and, in many cases, their ability to sufficiently provide for their families. Employers who promote cultures of innovation will benefit from retaining their most talented and motivated employees, especially those who have side businesses. Running side businesses enriches employees' skill sets and provides them with valuable experience, perspectives, and leadership capabilities that will benefit their organizations immensely.
In conclusion, employees should never be discouraged from starting and running side businesses. A side business can offer numerous benefits, including enhanced skills, financial independence, and increased job marketability. By allowing employees to pursue their own side hustles, employers can foster a culture of innovation and entrepreneurship while also retaining their talented and motivated employees.