The Rise of the Side Hustle: What Employers Should Do About It

The side hustle is no longer a fringe activity; it’s a defining part of the modern workforce. According to SurveyMonkey’s Workplace Culture and Trends report, nearly three in four employees (72%) either have a side hustle or are considering one. While side hustles can spark creativity and growth, they also present challenges for employers — from retention risks to engagement gaps.

So, what does the rise of the side hustle mean for your organization, and how should you respond?

Why Are Side Hustles So Popular?

The data tells a clear story: workers are diversifying their income streams for financial and personal reasons.

• 37% already have a side hustle.
• 35% are considering one.
• 48% pursue side hustles to save for financial goals.
• 44% need the income to make ends meet.
• 37% are seeking to build new skills.

For many, side hustles aren’t just about money. Nearly half of workers aspire to passive income streams like investments (46%) or business ownership (42%). Among Gen Z, entrepreneurial energy runs high: one in four (26%) are considering a career as an influencer or content creator.

Are Side Hustles Bad for Employers?

Not necessarily. Side hustles can:

• Build skills employees can bring back into the workplace.
• Fuel creativity and innovation.
• Boost resilience by giving workers new perspectives.

But they also signal potential challenges:

• Financial strain: Employees may feel underpaid.
• Retention risk: Passion projects can lead to turnover.
• Burnout: Balancing multiple jobs heightens exhaustion.

How Can Employers Support Employees with Side Hustles?

1. Acknowledge the reality
   Side hustles are mainstream. Recognize them openly instead of treating them as distractions.
2. Address financial stress
   Flexible, meaningful rewards can ease financial burdens. Gift cards for essentials like groceries or fuel, or stipends tied to performance, help employees feel supported.
3. Encourage skills development
   Incentivize training and mentorship programs. If workers are building skills anyway, make sure your company is part of their growth journey.
4. Give work more meaning
   Recognition programs ensure employees feel valued at their primary job, so they don’t look elsewhere for validation.

What’s the Employer Takeaway?

Side hustles reflect ambition and necessity. Workers want stability, purpose, and growth. Employers who meet those needs with recognition, development opportunities, and flexible incentives will strengthen loyalty — even in the age of the side hustle.

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