Recently, I came across an article from Business Insider that discussed Shopify CEO Tobi Lütke's decision to restrict employees from pursuing side hustles, citing the need for "unshared attention" at Shopify. I have to admit that this decision didn't come as a surprise to me. Regrettably, such a stance has been the norm in the corporate world for quite some time.
Nevertheless, in the post-COVID era, people have found themselves either able or compelled to explore additional income streams. This need for supplementary income is even more pressing in today's climate of rising inflation.
Let's take it a step further, the role of employees has evolved beyond traditional job descriptions. Many people are just not satisfied with their 9-to-5 job; they are looking for additional creative outlets and income sources through side hustles. But some CEOs might be hesitant to allow their employees to explore these entrepreneurial pursuits, fearing a lack of dedication to their primary roles. However, I've had the opportunity of creating Professional Development systems and policies for companies. Through this I found that encouraging side hustles can actually benefit both employees and companies.
The Side Hustle Boom
Side hustles are not new, however it has experienced a widespread phenomenon in the last 3 years. They offer employees an opportunity to explore their passions, develop new skills, and supplement their income. In fact, some of the most successful companies, such as Google and Slack, were born as side projects. It can be beneficial for CEOs to acknowledge the importance of side hustles, and tap into their employees' untapped potential.
Promoting Entrepreneurial Education
By providing opportunities for employees to learn about entrepreneurship, businesses can nurture innovation, creativity, and problem-solving skills. This not only benefits the employees' side hustles but can also lead to valuable insights and fresh perspectives that can be applied within the company.
Establishing Boundaries in a Professional Development Policy
While encouraging employees to explore side hustles and entrepreneurial pursuits can be a valuable strategy, it's equally important to set clear boundaries within a professional development policy. Boundaries help strike a balance between an employee's individual goals and the company's interests.
Embracing Employee Development
Here's the thing, it's been found that the majority of employees won't transition to their side hustles full time. However, this doesn't mean their entrepreneurial endeavors are in vain. Encouraging side hustles can foster personal and professional growth. Employees can gain a deeper understanding of what it takes to run a business, develop their creativity, and boost morale, creating a stronger and healthier work environment.
Preparing for Employee Transition
One of the primary concerns of CEOs when it comes to side hustles is the potential loss of valuable team members. However, it's important to recognize that employee turnover is a part of every business. By embracing side hustles, companies can create a culture of adaptability and preparation for change. This proactive approach ensures that when employees do decide to leave, the transition is smoother and less disruptive.
Fostering a Positive Work Environment
Ultimately, a workplace operated by restrictions and fear is counterproductive. Such an environment can stifle creativity, erode morale, and hinder productivity. By embracing side hustles, CEOs can build a workplace where employees feel supported, motivated, and valued. This positive work environment is more likely to yield engaged, loyal, and satisfied employees.
Embrace the Future
In today's evolving work landscape, side hustles have become a common pursuit for employees seeking creative outlets and extra income. Rather than stifling this trend, CEOs should embrace it. By encouraging entrepreneurial education, fostering employee development, and preparing for transitions, companies can benefit from a more innovative, creative, and positive work environment. Balancing freedom and responsibility by incorporating boundaries ensures that both employees and the organization can thrive in an era where side hustles are becoming an increasingly significant part of the professional landscape.