Should Your Employees Be Doing Side Work? Pros, Cons & What to Watch For | CFC 251

📅 April 17, 2025 ⏱️ 52:38 🎤 Martin, Wayne

Chapters

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0:00

Side Work Dilemma

Martin recounts a client's experience with an employee handing out business cards for their own competing side work.
0:33

The Phone Experiment

The hosts discuss a personal experiment with a 'dumb phone' to reduce screen time and its impact on mental clarity and productivity.
2:40

Why Side Hustles?

They explore the motivations behind employees doing side work, questioning if it's due to insufficient pay or a desire for entrepreneurship.
3:24

When Side Work Competes

A discussion on the ethical boundaries of side work, particularly when it directly competes with the employer's business or uses company resources.
4:41

Benefits of Side Work

The hosts acknowledge potential benefits of side work, such as employees gaining appreciation for business ownership and learning valuable lessons.
5:31

Liability and Ethics

They delve into the legal and ethical implications of side work, including liability, customer poaching, and the impact on employee focus.
6:21

Direct Competition: No

The hosts firmly establish a 'no' policy for side work that directly competes with the employer's services or utilizes their resources.
7:40

Opportunity for Growth

The discussion shifts to how an employer can recognize and leverage an employee's entrepreneurial drive, potentially leading to new business divisions or investment opportunities.
8:03

Policy and Clarity

The episode concludes with an emphasis on establishing clear policies, fostering full disclosure, and being either 'all in or all out' regarding employee side work.

Speakers

Martin

Host

Wayne

Host

Key Takeaways

✦

Clearly define your company's stance on employee side work, ideally starting with a default 'no' for anything related to your core business and explicitly prohibiting use of company resources.

✦

Understand the 'why' behind an employee's side hustle. Is it for extra income, or are they aspiring entrepreneurs? This insight informs your approach.

✦

Be aware of the legal and ethical implications of employee side work, especially regarding liability, customer poaching, and potential conflicts of interest.

✦

Consider the 'opportunity cost' of side work: if employees are doing the minimum for you but giving their best to their side hustle, it indicates a misalignment.

✦

If an employee's side work is not directly competitive and you trust them, establish a full disclosure policy. Encourage them to share details for feedback and guidance.

✦

Recognize entrepreneurial talent. If an employee is consistently excelling in side work, explore opportunities to invest in them, create new divisions, or mentor them to spin off their own venture, potentially becoming a trusted contractor.

✦

If you decide to allow side work, ensure clarity in policies, consistent communication, and a strong managerial relationship where employees feel comfortable disclosing their activities.

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