Employees have jobs on the side — and it’s hurting your business

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Scared of pandemic layoffs, many employees picked up freelance work to supplement their full-time salary — but it's hurting their job performance.

Three out of four employees are interested in pursuing a side hustle during the pandemic, according to a survey by Paychex, a human capital management firm. Of those employees, 59% are doing another job on the side and 32% are spending work hours on their side projects.

Employees are spending an average of 52 hours a week on freelance projects, which are impacting their productivity. These additional hours are causing employees to submit work late (23%), turn in poor quality work (17%) and miss meetings (12%).

Read more: A quarter of employees are planning to quit post-COVID

Employees aren’t intentionally trying to deprive their employers of quality work — they’re just trying to plan for an uncertain future.

“Many people are taking on freelance jobs in addition to their primary, full-time employment, which is causing conflict between their existing work responsibilities and the side work they’ve procured,” according to the Paychex survey report. “While the majority preferred the work they do in their full-time jobs, many would consider leaving those roles if their freelance work paid better.”

Employees are so afraid of layoffs that they don’t want their current employers to know about their freelance work; 52% of them haven’t told their bosses they have a side hustle. Many of these employees are able to conceal their secondary employment; only 12% reported being caught doing freelance work during the workday.

While unemployment rates are improving, as many as 10 million jobs were lost during the pandemic, according to the Labor Department. Employees are still nervous about whether those rates could go up again. Workplace leaders say the best thing employers can do in this situation is to reassure employees that their company is taking steps to prevent layoffs.

Read more: Monster finds employers are ready to rehire in 2021

“There are several firms in the U.S. right now, including our own, that have publicly said layoffs are a last resort,” said Bhushan Sethi, PwC’s global people and organization leader, in a previous report. “What they are looking to do is be creative with the different levers you can pull around the workforce.”

To help prevent layoffs, Sethi recommends considering compressed work schedules — or lessening work hours to help keep everyone on staff. Employee sabbaticals can also be an effective tool, he said, because employees usually receive a portion of their salary when they take them.

“It’s an opportunity for firms to start planning beyond just today’s business,” Sethi says. “The more you can get employers to actually think about their financial impact, then you can get creative.”

Read more: 35 companies that boosted their employee benefits amid COVID-19

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Employee productivity Gig economy Workplace management
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