Are your Gen Z employees distracted? Maybe it's because they're moonlighting.

Do your Gen Z employees seem a little more preoccupied and absent-minded than usual these days? The problem might be their other jobs--driving for rideshare companies, selling stuff online, influencing on social media and otherwise engaging in part-time work. According to a recent study by the Deloitte consulting firm, almost half of nearly 15,000 Gen Z workers surveyed hold down a second job or side hustle.

The Deloitte 2023 Gen Z and Millennial Survey found that 46% of workers born after 1997 have more than one job.

Advice for employers

For employers, Gen Z workers who are distracted, tired and stressed out can place a significant drag on operations. There are a couple ways to deal with the problems that accompany moonlighting. Although both options offer potential benefits, each comes with risks, too.

Ban outside employment. You may already have a no-moonlighting policy that prohibits outside employment. Review that policy. It may have been drafted years ago, before the emergence of the gig economy and social-media influencing as a way to earn money.

Older moonlighting policies may ban outside employment completely or just require employees to request permission before taking an outside job. Decide what updates are needed and whether you want to ban only W-2 employment or also ban entrepreneurial side hustles like social-media influencing, rideshare driving and the like.

Focus on performance. Enforcing a no-moonlighting policy is difficult. The fact is, if the employee isn't forthcoming about outside employment, you may never find out. And if you do, you may have to choose between retaining good employees who have been performing well for you and firing them. Avoid that conundrum by focusing strictly on employee performance. If moonlighting employees are doing a good job, keep them. If not, regardless of the reason, discipline or terminate.

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