Call us on:  0808 172 93 22

The “Open Relationship” Taking Over The Workplace!

Woman Doing Multiple WorkRecent research conducted by the Henley Business School, published this month, suggests that the traditional nine to five working pattern is set to become a thing of the past over the next 10 years, coinciding with the rise in the “Side Hustle.”

“Side Hustling” is defined as running a small business or having a secondary job in addition to your main career and the research (sampling 500 UK business leaders and 1,100 working adults) suggests it can range from fitness training on the side, to stock marketing investing over breakfast!

39% of those in employment (nearly 4 in 10 employees) admit to Side Hustling, and almost 50% of business leaders have a side hustle.

SHOULD EMPLOYERS BE CONCERNED BY THIS NEW “PATCHWORK” CAREER TREND? 

Employee retention is a great concern. The typical fear held by employers is that the Side Hustle will become the “main hustle,” and as a result employees with leave their employment.

Naeema Pasha (Head of Henley Careers) has likened the concept of Side Hustling to being in an open relationship – both parties know they are seeing other people, but both also know that they are getting some benefit from the other side. They don’t want to find out, after investing in the relationship, that the other side runs off with the Side Hustle after using them for their free WIFI and equipment.

ARE THESE FEARS LEGITIMATELY HELD? 

It would appear not…The research suggests that Side Hustling actually has the opposite effect. Employers who embrace the practice of Side Hustling are likely to be more appealing to new recruits and are also likely to retain their best talent.

If an employee has a passion that is not necessarily their full-time employment and they are supported in developing this passion, they are more likely to be happy and engaged in their full-time employment and will deliver and perform whilst at work. In consequence, they are more likely to stay in their employment.

Danny Harmer (Chief People Officer at Metro Bank) summarised this when he said:

“If someone has a passion that is not their full-time organisation, of course there is a risk that in 10 years they might leave – but people leave work for all kinds of reasons. While they are with your organisation, have them happy and engaged, because when people are treated as individuals they do a better job.”

Henley’s research suggests that 60% of business leaders believe their staff feel happier if they are able to pursue side projects, and 69% of people engaged in Side Hustling were more positive about their work.

There is also an added benefit of creating a workforce that is developing a diverse range of skills without the Company having to incur additional training costs.

SO WHAT ARE THE RISKS IF SIDE HUSTLING IS EMBRACED BY YOUR BUSINESS? 

45% of Side Hustlers have reported working more than 40 hours per week in total, and 25% have reported working more than 50 hours per week in total.

Only 30% of employers monitor and record side working!

This creates a risk for employers under the Working Time Regulations (“WTR”). Under the WTRs, an employer is not permitted to offer an employee work, which would result in them working for more than 48 hours per week on average over a specified reference period. Employers should therefore be monitoring hours worked for other employers to ensure that they are not breaching these Regulations. Alternatively, employers can require employees to “Opt-Out” of the WTRs, or extend the average reference period by putting in place a Workforce Agreement.

Another potential risk is seeing a drop in employee performance caused by employees not dedicating enough time to their main employment, but instead misusing Company resources (and Company time) by working on Side Hustle projects during designated working hours.

Similarly in this vein, potentially the biggest risk to employers is employees using confidential Company data to further their own interests and/or those of Company rivals with whom the employee may be Side Hustling.

HOW CAN EMPLOYERS BENEFIT FROM THE ADVANTAGES IN STAFF MORALE THAT SIDE HUSTLING BRINGS, BUT ADEQUATELY PROTECT THEMSELVES? 

Two thirds of employers need to adapt to accommodate the Side Hustle open relationship – complacency, or alternatively refusing to accommodate Side Hustling, is likely to mean employers have a high staff turnover.

The starting point is to create a “Secondary Employment Policy.” 49% of employers interviewed as part of Henley’s research did not have one.

Policies can be used to set clear boundaries and guidelines about secondary employment, and will act as a safeguard for the employer to rely on if things go awry. Employers are encouraged to set broad guidelines and partake in adult conversations when enforcing the Policy as opposed to drafting generic checklists of what employees can and cannot do.

Secondly, employers should ensure that they have clear confidentiality obligations and adequate and enforceable post-termination restrictions in their Contracts of Employment to ensure that employees are prohibited from misusing confidential information during and after their employment.

Finally, employers must monitor the working hours of employees, including hours worked for other employers and consider requiring a working time “Opt-Out” if it appears that employees are likely to be working more than 48 hours per week on average.

For additional help and assistance on this topic, please contact a member of the FG Solicitors team on (01604) 871 143 or email fgmedia@fgsolicitors.co.uk

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Updated: by FG Solicitors
Call us on:  0808 172 93 22

THE €OPEN RELATIONSHIP€ TAKING OVER THE WORKPLACE!

Woman Doing Multiple WorkRecent research conducted by the Henley Business School, published this month, suggests that the traditional nine to five working pattern is set to become a thing of the past over the next 10 years, coinciding with the rise in the “Side Hustle.”

“Side Hustling” is defined as running a small business or having a secondary job in addition to your main career and the research (sampling 500 UK business leaders and 1,100 working adults) suggests it can range from fitness training on the side, to stock marketing investing over breakfast!

39% of those in employment (nearly 4 in 10 employees) admit to Side Hustling, and almost 50% of business leaders have a side hustle.

SHOULD EMPLOYERS BE CONCERNED BY THIS NEW “PATCHWORK” CAREER TREND? 

Employee retention is a great concern. The typical fear held by employers is that the Side Hustle will become the “main hustle,” and as a result employees with leave their employment.

Naeema Pasha (Head of Henley Careers) has likened the concept of Side Hustling to being in an open relationship – both parties know they are seeing other people, but both also know that they are getting some benefit from the other side. They don’t want to find out, after investing in the relationship, that the other side runs off with the Side Hustle after using them for their free WIFI and equipment.

ARE THESE FEARS LEGITIMATELY HELD? 

It would appear not…The research suggests that Side Hustling actually has the opposite effect. Employers who embrace the practice of Side Hustling are likely to be more appealing to new recruits and are also likely to retain their best talent.

If an employee has a passion that is not necessarily their full-time employment and they are supported in developing this passion, they are more likely to be happy and engaged in their full-time employment and will deliver and perform whilst at work. In consequence, they are more likely to stay in their employment.

Danny Harmer (Chief People Officer at Metro Bank) summarised this when he said:

“If someone has a passion that is not their full-time organisation, of course there is a risk that in 10 years they might leave – but people leave work for all kinds of reasons. While they are with your organisation, have them happy and engaged, because when people are treated as individuals they do a better job.”

Henley’s research suggests that 60% of business leaders believe their staff feel happier if they are able to pursue side projects, and 69% of people engaged in Side Hustling were more positive about their work.

There is also an added benefit of creating a workforce that is developing a diverse range of skills without the Company having to incur additional training costs.

SO WHAT ARE THE RISKS IF SIDE HUSTLING IS EMBRACED BY YOUR BUSINESS? 

45% of Side Hustlers have reported working more than 40 hours per week in total, and 25% have reported working more than 50 hours per week in total.

Only 30% of employers monitor and record side working!

This creates a risk for employers under the Working Time Regulations (“WTR”). Under the WTRs, an employer is not permitted to offer an employee work, which would result in them working for more than 48 hours per week on average over a specified reference period. Employers should therefore be monitoring hours worked for other employers to ensure that they are not breaching these Regulations. Alternatively, employers can require employees to “Opt-Out” of the WTRs, or extend the average reference period by putting in place a Workforce Agreement.

Another potential risk is seeing a drop in employee performance caused by employees not dedicating enough time to their main employment, but instead misusing Company resources (and Company time) by working on Side Hustle projects during designated working hours.

Similarly in this vein, potentially the biggest risk to employers is employees using confidential Company data to further their own interests and/or those of Company rivals with whom the employee may be Side Hustling.

HOW CAN EMPLOYERS BENEFIT FROM THE ADVANTAGES IN STAFF MORALE THAT SIDE HUSTLING BRINGS, BUT ADEQUATELY PROTECT THEMSELVES? 

Two thirds of employers need to adapt to accommodate the Side Hustle open relationship – complacency, or alternatively refusing to accommodate Side Hustling, is likely to mean employers have a high staff turnover.

The starting point is to create a “Secondary Employment Policy.” 49% of employers interviewed as part of Henley’s research did not have one.

Policies can be used to set clear boundaries and guidelines about secondary employment, and will act as a safeguard for the employer to rely on if things go awry. Employers are encouraged to set broad guidelines and partake in adult conversations when enforcing the Policy as opposed to drafting generic checklists of what employees can and cannot do.

Secondly, employers should ensure that they have clear confidentiality obligations and adequate and enforceable post-termination restrictions in their Contracts of Employment to ensure that employees are prohibited from misusing confidential information during and after their employment.

Finally, employers must monitor the working hours of employees, including hours worked for other employers and consider requiring a working time “Opt-Out” if it appears that employees are likely to be working more than 48 hours per week on average.

For additional help and assistance on this topic, please contact a member of the FG Solicitors team on (01604) 871 143 or email fgmedia@fgsolicitors.co.uk