HR: Does Your Organization Need a Moonlighting Policy?
In today’s economy many people have been driven to work two jobs just to make ends meet. According to recent estimates, as many as 5% - 7% of the full time US workforce is “moonlighting”. Most organizations have policies dealing with “second jobs” included in their Employee Handbooks, but for some businesses a separate policy specifically addressing this issue can make sense.
There are differing opinions in the HR world on whether a specific “moonlighting” policy is needed. Some believe that Job Performance, Confidentiality and Non-Compete Polices will cover the bases. Others believe a distinct policy clarifying the employer’s expectations is necessary. If an organization does decide a separate policy is needed, it’s important to make sure the guidelines include performance expectations, prevention of conflicts of interest, as well as protecting a company’s proprietary information.
When creating a policy, it’s also important to give employees the freedom to make choices about how to reach a desired income level. A complete ban on outside employment runs the risk of causing morale and recruitment issues. In general, employers have the right to impose reasonable restrictions on employees- such as conflict of interest- but the trick is to devise a policy that protects not only the company but the employee’s privacy as well. Some employers handle this by requiring employees to inform them of outside employment and in some cases obtain permission.
In the end deciding for or against a separate “moonlighting “policy depends on each employers circumstances. Whatever direction a company chooses to proceed- a separate or combined policy- employers should proactively address this issue by creating a clear, concise policy regarding employees and outside employment.