In recent years, the trend of remote work has gained popularity, especially in the technology industry.
The advent of modern technology has seen certain kinds of employees no longer being required to be physically present in an office to perform their job functions.
This flexibility is praised by many as having benefits but also comes with a set of challenges, not just related to the intermingling of work and home life but also the shift of some of the real estate costs and costs typically associated with office-bound workers.
Benefits particularly lauded by those working remotely, are the avoidance of long commutes and of course health and safety concerns in times of pandemic.
One particular challenge for employers is the potential for employees to engage in “moonlighting”, which can be a significant concern for certain employers, especially in the technology industry. For the uninitiated, moonlighting refers to the practice of working a second job in addition to one’s primary job.
The origin of “moonlighting” dates back to the early 1800s, when it was commonly used to describe the practice of working at night by the light of the moon.
In the early 1900s, the term began to be used more broadly to refer to working a second job in addition to the primary job. Moonlighting became increasingly prevalent in the United States during the Second World War when workers were encouraged to take on additional jobs to support the war effort.
After the war, moonlighting continued to be a common practice, especially among blue-collar workers who were looking to earn extra income to support their families.
In the 1960s and 70s, moonlighting gained even more widespread acceptance as a way for employees to pursue their passions or supplement their income. However, during this time, moonlighting also became a great source of controversy, with some employers expressing concerns about conflicts of interest and decreased productivity.
With the rise of the “gig economy” in recent years, moonlighting has become even more prevalent, especially in industries like technology, where employees have in-demand skills that can be used for side projects and freelance work.
For employees, it’s a way to earn extra income or pursue their passions. For employers, it can create a conflict of interest and pose a significant perceived and actual risk to their business. In the tech industry, where employees have access to sensitive and confidential information for example, moonlighting poses the risk of unintentional or deliberate data breaches and this in turn jeopardizes a company’s reputation and introduces avoidable potential security risks.
An employee working on a project for a competing company may unintentionally share confidential information, leading to a data breach. Policies on personal use of equipment often mitigate this but things might also be said in conversations and in other work-related circumstances.
There are several reasons why tech workers may be particularly more prone to moonlighting. Firstly, the nature of their work often involves flexible hours and remote working arrangements, which can make it easier for them to take on additional work.
Secondly, the relative shortage of competent tech workers who are in high demand at a specific price point, and the skills they possess can be valuable to other companies.
From the employer’s perspective, it could be argued that there is the potential for decreased productivity, missed deadlines, and poorer quality of work as well as potential legal and previously cited reputational risks.
To mitigate the risks associated with moonlighting, employers often take contractual, policy, and control steps. Firstly, they may include moonlighting clauses in employee contracts, they may prohibit employees from taking on additional work without prior approval.
Monitoring and tracking systems may also be considered on work assigned equipment like keyboard and screen monitors to ensure that employees are not engaging in unauthorized moonlighting or behaviors. These systems not only monitor employee activity but also flag suspicious behavior, such as accessing unauthorized websites or sharing confidential information.
It’s a difficult balancing act, employees value the flexibility and freedom to pursue side projects, and a blanket ban on moonlighting can lead to increased staff turnover and decreased job satisfaction.
Employers can consider a more nuanced approach, such as allowing employees to engage in moonlighting as long as it doesn’t create a conflict of interest or compromise the company’s security though exactly how this is measured may be difficult to establish.
Complete prohibition of moonlighting altogether may seem like an easy solution but can also create some interesting disbenefits.
Employees disallowed from the pursuit of side projects or engaging in freelance work may feel very stifled and demotivated in their primary job. This may result in decreased job satisfaction and productivity, ultimately causing harm to the quality of their work and commitment to the business.
Prohibition can also lead to talent loss as employees not allowed to pursue side projects or freelance work may be more likely to seek employment elsewhere, where they have more flexibility and autonomy. Employers who prohibit moonlighting may find themselves struggling to attract and retain top talent as a result of this restrictiveness.
Side projects and freelance work can provide valuable indirect learning experiences that help employees develop new skills they can bring back to their primary job.
The prohibition of moonlighting can also create legal risks for employers. In some states and countries, laws protect employee rights to engage in lawful off-duty activities, which may include moonlighting. Employers who prohibit moonlighting without a clear and compelling reason may be at risk of legal action from employees.
