People have decided to play elsewhere
Gary Hamel once memorably said, “Life is too short to be spent on inconsequential problems,” and for too many employees — even senior managers, the internal machinations of large companies are increasingly felt to be pointless and tiresome. Firms may be ambitious for the future, but as Peter Hinssen, a serial tech entrepreneur, puts in his book The Day After Tomorrow, too many hours are spent on sorting out “the shit of yesterday.”
The old motivation levers are now less effective, and employees expect their work to fulfill them in more meaningful ways. A study conducted by Harvard Business Publishing in 2022 found that 90% of the global employees and executives polled responded that “their work should bring a sense of purpose to their life.” While organizations belatedly strive to define their purpose, the clouds are gathering. The future rewards of hard work now seem less certain, with AI and machines poised to replace many roles. Many employees realize that what got them there won’t get them elsewhere.
Meanwhile, something strange is happening, posing an intriguing puzzle for organizations and their leaders. According to Barclaycard, one in 12 people in the UK, the equivalent of 6.5 million in the country, now have a side hustle. This is not just a UK phenomenon but a growing global trend. A recent Michael Page survey of employees in continental Europe found that 62% are seriously thinking about or have already started a side hustle.
The methodology varies worldwide, but other large sample studies reported that 34% of people in Hong Kong and 54% in Singapore are already engaged in a side hustle. One recent survey in the Philippines found a remarkable 77% reporting an active gig outside their full-time job. In April, Market Watch in the US found that more than half (54%) of Americans say they’ve adopted a side hustle in the last 12 months, with younger workers the most likely to take on a side gig. A significant proportion of those with side hustles are professional and well-paid employees, and for these, the hustle is about so much more than earning extra cash. Employees find their most productive, imaginative, and satisfying hours are self-determined and devoted while moonlighting away from the orbit of the employer.
After the deleterious impact of lockdowns, growth has returned for the small owner-managed enterprise. The New Startup Index, recently published by Nat West, found that over 900,000 new companies were incorporated in the UK in 2023, making it a record year for new businesses. A good barometer for the global growth of the side hustle is the exponential growth of unique online stores hosted by the internet services platform Squarespace. In 2020, Squarespace hosted 12,748 stores globally. In early 2024, this was 300,000 — a 2,000% increase in just four years. Over half of these stores sell less than ten different products. These micro-enterprises are facilitating the side hustle in a way not seen since Taobao (part of Alibaba group) transformed the e-commerce market for small businesses in China.
For many, the side hustle is a necessity caused by the cost-of-living crisis to cover debts or to make up for low pay. But whatever the motivation, there is often a personal development dividend. Side hustlers gain from the stretch, adventure, and learning from their chosen pursuit, but for an employer, the energy created is lost. The benefits of new ideas, or personal growth, are not seen by an employee’s managers, colleagues, or clients.
This is not just about fickle “Gen Z-ers,” as the side venture is also attractive to older, experienced employees. Expediting a move to the next level, or a desire for more purpose and meaning, is often the motivation. For the ambitious of any age, the side hustle seems to be the better outlet for their energy than their primary employer.
Source: Why the side hustle matters so much – Meaningful work – John Dore – I by IMD
