Not-So-Secret Moonlighting

It’s the management headache that rears its head again and again: second jobs. In the aughts, employees developed “side hustles”; during the pandemic, they took on stealth second careers. Now second jobs are back again, as workers face record levels of consumer debt.

Half of Americans now carry month-to-month credit-card debt, according to new figures from Bankrate, creating the highest rates of consumer debt since the heavy layoffs of the pandemic. Gen Xers are most likely to be weathering ongoing debt, with 60% carrying month-to-month balances, but indebted workers exist across income levels: Counterintuitively, whether household incomes are below $50,000 or over $100,000, rates of debt remain steady at 56% to 62%. It’s understandable that employees struggling to pay the bills are exploring taking on additional income, but the result can be diminished job performance. “Whether that’s through scheduling conflicts, or lack of focus, or low energy, the impact can be negative,” says engagement expert Mark Royal, senior client partner at Korn Ferry. 

To be sure, many corporate roles prohibit moonlighting, and just 5.3% of the working population reports holding two taxable jobs. That said, the number of Americans with two taxable full-time jobs has nearly tripled since 2014. But many more people moonlight under the table—in jobs like petsitting, housesitting, delivery, driving, and food service—and sympathetic managers often look the other way. Experts say that expressing empathy for struggling employees is critical: 42% of debt holders say their debt is unmanageable, up from 38% in 2022, according to the FinHealth Spend Report. Regardless of the official corporate line on moonlighting, managers should be alert to potential conflicts of interest, such as information sharing with competitors. “Managers need to take a harder line in these cases,” says Royal.

Even if the job market these days heavily favors employers, experts say that companies should seriously consider approving second jobs for talented, hard-to-replace staffers. Smart leaders should assess what is motivating the workers—money or morale, or both?  Some managers can provide solutions. “I would want to have a conversation with the employee about whether they’re in the right role,” says organizational strategist Maria Amato, senior client partner at Korn Ferry. “Perhaps they could put that extra energy toward a more demanding role that offers a higher salary or bonus potential.” 

If financial insecurity is driving extra employment, managers can offer access to financial counseling or other benefits that may ameliorate the situation. “Employers have an opportunity to help,” says Ron Seifert, leader of the North America Workforce Reward and Benefits practice at Korn Ferry. Many firms offer financial programs that assist employees with budgeting, preparing for real-estate purchases, and maintaining good credit. “Credit-card debt is an individual choice and responsibility, but the burden and concern of paying creeps into the workplace,” says Seifert. 

Learn more about Korn Ferry’s Workforce Management capabilities.

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