COVID forced many employees to work from home, whether they wanted to or not. As recovery continues employee and employers are deciding between their preferred work location. Many employees chose to remain at home even when their business called them back. Some employers, on the other hand, decided to trim costs and allow employees to stay home indefinitely. This battle between home and the office also created a third group--those who are leaving the traditional workforce to “do their own thing.”
As we have seen with recent rising costs like skyrocketing property and rent, increasing fuel charges, and groceries, the dollar just isn’t covering what it used to. Salaries aren’t keeping up with costs. The average increase in salaries since 2021 is 3.4%, while the average increase in costs (the inflation rate) is 8.5%. For this reason, it is becoming increasingly harder not only for business owners to make a sizeable profit, but for their employees to make what they need to cover running their households. 58% of Americans live paycheck to paycheck and with inflation outpacing salary increases by more than double, financial troubles are getting worse.
What previously was an “either or” situation of working for someone or working on your own, has become yet another “hybrid model.” Many employees are now working for someone and on their own to make ends meet. It’s possible a good portion of your employees have a side hustle. Here’s why you should be happy about that:
Why You Should Support Your Employee’s Side Hustle
When some business owners hear their employees have a side hustle, they get concerned. But that doesn’t have to be the case.
1. Side hustles help your employees learn new skills that they can use in your business. From marketing to presentation skills, graphic design to website building, when they own a business or have a side hustle, there are things they are learning that could help round out your business.
2. It assists them in making ends meet, which means they are less likely to leave.
3. A side hustle provides an extra challenge and may help them fulfill their passions while remaining in your employ. Happy employees are less likely to quit.
4. A side hustle will inevitably build your employees’ sales skills (or it won’t work out for them). Their new sales techniques can help them sell more in your business—and these days everyone is in sales and service even if it’s not in their job description.
5. It shows you provide good work/life balance. If an employee can work for you and work a side job, they have extra time outside of their position. If additionally, you show an interest in their side business (or even support it), you will create a loyal employee and that goes a long way to keeping your business running smoothly. Who knows? They may even provide a complementary service or product that you can find a way to use for mutual benefit.