With inflation continuing to place limitations on our spending, workers are looking to make their hard-earned dollars go farther. From buying in bulk to reducing the number of days spent eating out, the average nine-to-fiver is doing whatever they can to find a solution that helps ease their financial burdens.
Many have also turned to part-time jobs or gig work to supplement their income. In fact, according to CNBC.com, nearly 70% of Americans are looking for extra work to combat inflation. And experts predict that by 2023, 52% of the American workforce will have spent some time participating in the gig economy.
So, with roughly half of our employees in the gig economy, how do we as small businesses respond?
First, you're going to want to establish an outside employment (moonlighting) policy that lays out rules and expectations. While you don't want to hinder employees from earning extra money outside of normal working hours, it's perfectly acceptable - and recommended - to ensure their work does not affect their job duties or performance. Additionally, steps should be taken to prevent conflict of interest, competition, or compromise of company interests.
Second, if you're finding a substantial number of employees are involved in the gig economy, you may want to look into the reasons why. Is it strictly for additional income, or are there other factors such as toxic culture, poor management, or strict scheduling causing employees to seek additional work?
Lastly, if you're finding a substantial amount of your employees are seeking to make additional money just to pay their bills, it might be time to take a closer look at your compensation structure. If your salary tiers are below market rate for any positions, or if you've failed to give cost of living increases each year to combat inflation, you could be the reason your employees are seeking additional compensation, and you're putting yourself at risk of losing top talent.
Chances are, you've got several employees on your payroll who are in the gig economy already, with more being added all the time. Making sure you have the proper policies in place to protect your business is essential. Understanding why your employees are in the gig economy in the first place is equally important if you're hoping to retain top talent.
Need a little help with your polices or compensation structure? Elevated HR is your go-to for these things and more! Contact us today to learn how we can elevate your business!