10 Dec Employee Moonlighting: Balancing Loyalty and Flexibility
“Pure pragmatism can’t imagine a bold future. Pure idealism can’t get anything done. It’s when the two cooperate that magic happens.” – Simon Sinek
The quote aptly captures the C-suite challenges when dealing with employees who freelance in their time. With freelancing becoming a worldwide phenomenon, organisations are grappling with balancing loyalty to the company and letting employees have autonomy. Should leaders insist on sticking to company rules or embrace freelancing as a practice in today’s economy?
Working a job by moonlight
Moonlighting has become more common now, often presented as consulting gigs for various reasons. The rise of work-from-home, hybrid work setups and financial constraints drive the push for diversified professional ventures and second incomes.
Corporate rules usually don’t allow these arrangements, yet present complexity in enforcement. Decision makers must consider the effects of freelancing on an employee’s work performance, in addition to intangible aspects, like loyalty and ethics, that can affect the company culture.
Influence—a two-sided weapon
The impact of freelancing differs within companies. While some employees who handle responsibilities can offer new viewpoints and diverse skills to their primary roles and boost creativity, others may face challenges such as split attention and burnout from excessive freelancing that could create conflicts of interest and disrupt the unity of the organisation.
Senior management often finds themselves in a spot. Should they closely monitor freelance work, risk pushing away talent, or concentrate on results? The situation is complex.
While some staff members excel in their roles even as they engage in side projects outside of work hours, others might jeopardise their dedication to the organisation’s objectives.
Trends worldwide—freelancing in a borderless world
Freelancing is now a trend embraced by professionals or gig workers worldwide and seasoned professionals in countries like the United States, India, and Europe, as a way to achieve financial independence, seek intellectual growth, or expand their networks.
Forward-thinking businesses acknowledge the rise of freelance work as a trend in workplaces. Innovative companies like Google and Microsoft promote structured breaks or internal creative ventures to nurture employees’ entrepreneurial drive. On the other hand, conventional firms operating in regulated sectors, like finance and defence, tend to take measures against freelancing due to confidentiality and security reasons.
Reimagining the role of a consultant
The definition of a consultant has evolved and become more flexible lately—making it harder to differentiate between specialists and freelance workers. Employees are now leveraging this role not merely for financial gain but also to engage in various tasks, such as guiding startups and conducting workshops.
Navigating this nebulous conundrum can present challenges for executives when implementing policies that integrate or upend their organisation’s culture and practices. Regarding consulting positions that have cut guidelines and limited conflicts of interest, taking on freelance projects that lack specific definitions may blur the lines of ethical standards. This evolving landscape requires organisations to consider balancing fostering growth and addressing loyalty concerns within their workforce.
Navigating rules and regulations in a blended reality
Balancing in-person work setups adds complexity to overseeing engagements, posing a dilemma for companies: should they enforce constant camera surveillance or review freelance work through audits?
It’s crucial for leaders to recognise that implementing strategies might erode trust among employees and dampen team spirit. Furthermore, the impact of measures like firing is up for discussion. Dismissing an employee comes with the loss of skills and expertise, and could also affect the overall motivation of the remaining team members. Instead, promoting communication and implementing guidelines could be a more viable long-term solution.
An Issue of Personal Values
Ultimately, whether freelancing is perceived as acceptable depends on the motives and consequences involved. If pursued openly and with awareness, side jobs can be compatible with remaining loyal to one’s employer. However, freelancing involving secrecy, performance, or conflicting interests can result in a loss of trust.
Questions up for discussion
With the transformation of identities due to freelancing trends comes a series of questions for leaders to consider.
- Should they adapt to this change without compromising loyalty, or redefine the balance between goals and corporate obligations altogether?
- Should leaders approach the issue of freelancing by treating it as a concern rather than just a policy breach?
- Will having discussions and customised guidelines assist organisations in reaching a compromise?
The solution to this leadership quandary often hinges upon balancing being adaptable and holding oneself accountable. Inviting reader viewpoints is a great way to begin a conversation on this topic.
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