Opinion: Are Canadian employers prepared for side hustle era?

Opinion

The side hustle economy is no longer a niche phenomenon; it has become an integral part of the Canadian workforce.

A survey from Express Employment Professionals highlights the growing trend: over half of Canadian workers (53.4 per cent) have a so-called side hustle, often motivated by financial necessity or entrepreneurial ambition. Yet, this rising trend creates friction in traditional workplace dynamics, leaving employers grappling with policies — or the lack thereof — on balancing employee commitments.

What does this mean for Canadian businesses? And why are so many organizations hesitant to address this head-on?

Clash between ambition, productivity

On the surface, side hustles reflect qualities every employer should value: drive, creativity and ambition. Workers who dedicate their free time to entrepreneurial ventures or supplemental income display a commendable level of motivation.

However, this ambition often conflicts with an employee’s obligations during company hours. The Express survey found 38 per cent of workers admitted they would work on their side hustle during company time if they believed they could get away with it. Even more concerning, over half of companies (51 per cent) report discovering such behavior among their employees.

The fallout from side hustles bleeding into work hours is significant.

Employers cite decreased productivity (55 per cent), lower focus and attention to detail (47 per cent) and reduced engagement (38 per cent) as the main concerns. These figures highlight a growing disconnect between employees’ personal goals and organizational objectives.

This isn’t a mere coincidence; it underscores a systemic challenge as traditional workplace structures clash with the evolving gig economy.

Policy gaps: missed opportunity

Surprisingly, despite these challenges, only 29 per cent of Canadian companies have clear policies against working on side hustles during company time. An even smaller number prohibit employees from holding a second job altogether.

Half of Canadian job seekers surveyed stated their employers lack any clear policy on moonlighting, while 21 per cent were uncertain if such rules exist. This lack of clarity creates a precarious environment for both employees and employers.

Without defined expectations and a transparent framework, companies risk fostering resentment, confusion and unspoken tensions. Workers who juggle multiple roles are left to navigate their commitments on their own terms, potentially at the expense of the employer.

At the same time, companies with rigid restrictions may alienate their workforce. Workers often value autonomy and flexibility. Policies perceived as overly punitive — such as those threatening outright termination or demotion — may hurt an employer’s ability to attract and retain talent.

Why workers turn to side hustles

The motivation behind side hustles paints a complex picture of modern work. For many Canadians, economic pressures are the primary driver. Inflation, rising housing costs, and stagnant wages have pushed workers to seek supplementary income streams. Others view side hustles as opportunities for personal growth or as stepping stones to transitioning into a new career.

For some, these ventures enhance their primary roles by developing new skills or expanding professional networks. For instance, a marketing specialist who freelances as a graphic designer might bring those creative insights back to their full-time role. However, without a system that supports this dual commitment, the potential for burnout — and subsequent underperformance — is high.

Employer reluctance to enforce consequences

Despite acknowledging the challenges posed by side hustles, employers remain cautious about enforcing strict consequences. Only 11 per cent of companies surveyed reported firing employees for working on a side gig during company hours. A far more common response was addressing the issue with a verbal warning (30 per cent) or requesting employees to limit side gig activities to their personal time (32 per cent).

This reluctance likely stems from a recognition side hustles are now a norm, not an exception. Strict crackdowns might appear out of touch, especially in industries struggling to attract and retain talent. The talent shortage across sectors has forced many employers to weigh the risks of leniency against the potential backlash of alienating their workforce.

But does this leniency lead to tacit approval?

When 29 per cent of Canadian job seekers juggle side gigs during working hours, it suggests a lack of accountability within workplace cultures. Employers cannot afford to ignore this issue, but their response must be nuanced.

Toward balanced approach

The key to navigating the side hustle economy lies in balance. Rather than blanket bans or laissez-faire acceptance, Canadian employers should aim to develop flexible, transparent policies that accommodate employees’ ambitions without compromising business performance.

To start, organizations must define clear boundaries. This doesn’t necessarily mean prohibiting side hustles, but ensuring employees understand the limits. Policies should explicitly address working on secondary projects during company time, using company resources for personal ventures and potential conflicts of interest.

Additionally, fostering open communication is essential. Workers need to feel comfortable discussing their side hustles without fear of retribution. For example, an employee might be pursuing freelance consulting in a complementary industry, which could benefit their primary role. Employers who approach these conversations with curiosity rather than suspicion are more likely to find common ground.

Flexibility in scheduling may also help. Offering compressed workweeks or remote options could allow employees to manage their commitments more effectively, minimizing the temptation to multitask during company hours. When employees feel supported in their personal pursuits, they’re more likely to remain engaged and loyal.

Redefining productivity

Finally, the side hustle trend challenges employers to rethink how they measure productivity. Traditional metrics — hours logged, team participation — although still important may no longer suffice in an era of remote work and gig economies. Organizations that prioritize outcomes instead of fussing over how the work gets done can better accommodate a workforce that juggles multiple roles.