What is moonlighting?
Moonlighting is when people take on a second job to make extra money without their primary employer knowing. Typically, they do the second job after finishing their regular work hours or on weekends. As long as the employee isn’t violating any laws, regulations, or employment contracts, moonlighting remains legal in Canada. However, employees must ensure that their secondary job does not interfere with their primary job responsibilities.
Understanding the different types of moonlighting
There are four different types of moonlighting:
Quarter moonlighting
Quarter moonlighting is when someone has a part-time job, typically three to four hours, in addition to their full-time job. They handle both jobs without affecting their performance at the main job.
Half moonlighting
Half-moonlighting occurs when employees spend most of their free time at a second job after finishing their primary job to earn extra money, leaving them with little time for personal activities.
Full moonlighting
Full moonlighting happens when employees work their main and second jobs without reducing productivity. They might take on side employment like online bookkeeping, tutoring, or a business.
Blue moonlighting
Blue moonlighting is when someone takes on a second position outside of their primary employment but struggles to manage both, leading to poor performance in one or both workplaces.
Reasons for moonlighting
There are several reasons an employee may moonlight, including:
Earning extra money
Many do extra work because their main job doesn’t pay all their bills. The cost of living has increased, and this additional income may help manage debts or some emergency expenditures.
Job insecurity
When the job market slows down, there are typically recessions and layoffs. Employees worry about job security, often leading them to find part-time work in addition to their regular roles.
Career change
Employees might try moonlighting to explore different job fields or new opportunities. This strategy can help them decide if a career change suits them. Sometimes, employees may not feel valued, so they take on a second job where they feel more appreciated and respected.
Following a passion
It’s not always about the money for everyone who moonlights; some follow a hobby or passion, such as the part-time photographers working full time in another job.
Starting a business
Moonlighting by aspiring entrepreneurs can help them support themselves while building their businesses by giving them extra income and defraying the start-up costs and business challenges.
Gaining new skills
Moonlighting can also be a means of picking up new skills. Added work gives workers experience that can help in advancing their careers.
Meeting new people
A second job may give your employees access to other networks and better opportunities, increasing their personal and professional acquaintances.
How can moonlighting affect your business?
Moonlighting can have adverse effects on companies, such as:
Conflicts of interest
When employees take on additional work, there’s a risk they might work for a competitor, potentially leading to conflicts of interest or breaches of confidentiality. Sharing sensitive information from their primary job with a second employer, especially if it’s a rival, can harm the company. Additionally, employees might engage in activities that encourage clients from their main job to switch to a second employer, leading to client poaching.
Reduced performance and productivity
If high performers suddenly drop in performance, it may be an indicator of moonlighting. Look for signals like slow completion or increased mistakes in assignments or tasks.
Increased absenteeism
Running multiple jobs can lead to regular absences or late arrivals, which may impact team schedule performance.
Health problems
Moonlighting can be stressful and may lead to health problems such as burnout. The fatigue from exhausted employees can further impact their work performance.
Low morale and engagement
Employees’ absorption into side jobs may result in disengagement from their primary role. This behaviour can impact company morale and cooperation, creating a negative environment.
How to identify a moonlighting employee
There are several ways to detect a moonlighting employee, including:
Increased time off requests or absences
If an employee starts taking more time off, has more unplanned absences, or is often late, it might be a sign they’re moonlighting.
Decreased productivity
Working two jobs can lower an employee’s productivity. Consider signs like:
- A sudden drop in performance, especially from a high-performer
- Taking longer than usual to complete tasks
- Making more mistakes
If you can rule out other reasons for low productivity, you might consider the possibility of moonlighting.
Overly fatigued
Employees juggling two jobs may look exhausted and burned out. They might struggle to focus on their work and appear less attentive in meetings. While there may be other reasons for their tiredness, noticing these signs can help identify if moonlighting is a factor.
Social media review
Sometimes, employees post other side jobs on social media. If you are friends with them, you can view what they post about other work, but remember to respect their privacy.
Monitor and report
Encourage employees to inform management if they notice a coworker moonlighting. Offer incentives for reporting if they find a colleague working on outside projects during work hours.
Background checks
Companies that perform background checks can ensure they bring on trustworthy candidates with clean records. This can help reduce the risk of dual employment, theft, and fraud.
Tips to prevent employees from moonlighting
The following strategies can help prevent employees from moonlighting:
Creating a moonlighting policy
Consider implementing clear policies on moonlighting. Determine whether you allow staff members to have multiple jobs, set any restrictions, and outline the consequences for breaking these policies. Make sure to incorporate these guidelines into the employee handbook and employment contracts. Clearly define performance expectations, disclosure requirements, and how you will handle violations. These policies can help ensure all employees understand the rules and the importance of adhering to them.
Openly communicating with your employees
Share moonlighting policies at onboarding and in frequent conversations with staff. You can further explain why you discourage moonlighting, how doing it could affect the business, and what the implications are. If you suspect existing employees of moonlighting, HR can have one-on-one conversations with them. They might ask if the employee is facing financial difficulties or pursuing a passion through a part-time job. HR can also explore ways to help, like upskilling employees and upgrading their positions based on their skills. These conversations can build trust and show employees that the company cares, which might reduce the likelihood of moonlighting.
Encouraging professional development
Consider offering certification and training programs to help employees improve their skills and become more competent. Encourage them to take on different projects to gain diverse experience and expertise. Since many employees work second jobs for career advancement and skill development, providing in-house training can reduce their need to look for opportunities outside their primary employment.
Providing competitive compensation packages
To address the issue of moonlighting, consider offering competitive salaries and benefits. As many employees work additional jobs to meet financial needs, keeping salaries, annual bonuses, performance appraisals, and other benefits at competitive levels can help reduce the need for moonlighting and retain your current staff.
Ongoing ethics training
Regular ethics training can enable workers to internalize your company’s values and what is good and proper. It can also teach employees integrity and loyalty and how these contribute to a strong and functioning work culture.
Knowing what moonlighting is and why it’s becoming common can help businesses address its potential impacts. By implementing clear policies, offering competitive compensation, encouraging professional development, and promoting an ethical work environment, employers can reduce the likelihood of moonlighting and ensure a more focused and loyal workforce.
