Should I Support Employees with Side Hustles in Singapore?

The global pandemic and rising cost of living have spurred changes in the workplace, including the growing popularity of side gigs. In fact, a revealed that almost 60% of people in Asia-Pacific (APAC) countries, including Singapore, are engaged in some form of side hustle.

What is a Side Hustle?

Side hustles are often equated with moonlighting, where individuals work in their spare time to supplement their earnings. However, what sets it apart is that it involves pursuing work aligned with one’s passions. In other words, it’s essentially monetising a hobby, which also brings extra personal fulfilment.

Is Side Hustling Illegal in Singapore?

In Singapore, civil servants and individuals holding a work pass from the Ministry of Manpower (MOM) are strictly restricted from engaging in any income-generating work outside their primary employment. However, other citizens and permanent residents are not prohibited from holding multiple jobs, given that the side hustle does not violate their employment contracts.

Why Side Hustle: The Potential Value for Both Parties

We do see some professionals benefitting from their side hustles. However, the benefits may be less straightforward for employers, who will be reasonably concerned about its potential negative impacts, from productivity loss to conflicts of interest. That said, more progressive companies in Singapore are acknowledging the benefits of being supportive.

1. Enhanced Employee Well-Being and Performance

One key advantage is that allowing employees to pursue activities outside of work, even if it’s a financially rewarding side hustle, can positively impact their well-being. A study by Henley Business School echoes this sentiment, with 69% of side hustlers citing that their additional job added value to their lives.

By being supportive, employers can empower employees and boost their well-being and overall satisfaction. These positive emotions employees experience may then extend into their full-time work, potentially leading to improved daily task performance, as noted in a study published in the Academy of Management Journal.

2. Professional Development

Besides this, side hustles also offer individuals a platform to develop skills and insights that enhance their main jobs. Take, for instance, professionals our finance recruitment consultants have observed, who take up content creation on the side and provide career advice or share their general thoughts about the industry on social media. Doing so allows them to learn and refine skills, such as personal branding and digital marketing, which can benefit those in client-facing roles.

More importantly, these side hustles allow them to participate in discussions, gain new perspectives, and broaden their networks – all of which are invaluable in roles that demand strong networking and staying ahead of market developments.

In the modern workplace, where technological developments are rapidly transforming jobs and making career paths less linear, young professionals in Singapore are recognising the importance of adaptability. As they wonder, “What can I do to remain competitive in the long run?” seeing peers value-add to their professional lives through side hustles inspires them to pursue their own.

3. Talent Retention and Attraction

By acknowledging employees’ side projects, companies demonstrate a commitment to talent development. This can reduce staff turnover and make an organisation more attractive to top talent, as many candidates contemplate a job switch to seek more growth opportunities.

4. Improved Bottom-Line and Reputation

From a business perspective, recognising side hustles can potentially benefit the bottom line. This is because companies with a diversity of thought can benefit from a cross-pollination of diverse ideas, leading to more creative solutions and an enhanced ability to tackle complex problems.

How Should Employers React to Side Hustles?

Nonetheless, employers might still have reservations, ranging from concerns about whether the individual uses company resources for their side gig to potential reputational risks. Problems can also emerge when employees in Singapore engage in side hustles while on MC.

To prevent such issues, our recruitment consultancy firm recommends that employers clearly communicate their expectations and rules regarding external roles to their employees, fostering an environment where these matters can be openly discussed. Additionally, regularly reviewing employment contracts and HR policies is crucial to ensure that they contain appropriate clauses that protect the company’s interests.

What Should Employees Note Before Side Hustling?

On the employee front, we emphasise the importance of understanding the terms of one’s company policies before starting any side hustle and considering the following questions:

1. What Side Hustle Can I Do?

Advice: It’s wise to avoid activities that fall into legal grey areas or violate your company’s policies, such as working for competitors or using company time and resources for non-company-related projects. Even if there’s no policy on side hustles, transparency is key, and it’s advisable to discuss your plans with your manager.

2. Do I Have the Time?

To build a sustainable side hustle, you may also often need to wear multiple hats and balancing these demands with a full-time job can be challenging.

Advice: If the amount of commitment required risks affecting your performance in your primary job, then a side gig may not be suitable at this stage of your career. You may also want to have deeper conversations with yourself to explore your underlying motivations and how else you can fulfil these needs.

For further advice about workplace-related matters and industry insights, connect with our team of consultants today.