Younger workers, it seems, are no longer content with having just one source of income, according to recent findings from Capital One Canada.
Currently, 36% of Gen Z and Millennial workers—aged 18 to 44—already have a secondary source of income, while 49 per cent are considering starting one to achieve their financial objectives, according to the report.
“Our research shows that Gen Z adults are 10 per cent more likely to have a side hustle than their Millennial or Gen X counterparts,” says Becca Mintz, VP at Capital One Canada.
Overall, 53.4% of workers in Canada have a side hustle by selling goods through e-commerce, according to a previous report from Omnisend.
Why do Gen Z, Millennials have side hustles?
“For around a third of these young self-starters, access to credit was crucial in getting their business venture up and going,” says Mintz.
Among those engaged in side hustles, 61% say they view their additional work as a long-term commitment to meet financial needs. The vast majority—94%—report that earning more money, rather than pursuing a passion or hobby, is their main motivation.
Nearly half (49%) of respondents say they would experience financial stress without their side hustle, including some earning more than $100,000 annually. Additionally, 55% use the additional income to cover essential living expenses, while 59% put it towards building savings.
Overall, 74% of Canadians worry they’re not saving enough, according to a previous report from H&R Block Canada.
The challenge of side hustles
Despite their financial benefits, side hustles often demand a significant time investment, finds Capital One Canada’s survey of over 1,000 respondents.
Over half (55%) of individuals earning between $1,000 and $3,000 per month from their side job spend 11 to 20 hours a week on it. Among those making more than $3,000 monthly, 32% dedicate more than 20 hours weekly.
Meanwhile, time constraints remain a key barrier for younger Canadians, with 59% of survey respondents citing lack of time as the main reason they have not started a side hustle.
And among those who have gotten a side hustle, more than half (51%) report that the work was more than they anticipated, while 46% say they found it difficult to balance additional responsibilities with their primary job or school commitments. Neary 3 in 10 (29%) say their side hustle either currently interferes with or could interfere with their success at work or in education.
Should employers support workers with side hustles?
Despite the struggle that having a side hustle brings, this is widely popular among Canadians. In fact, 7.4 million Canadians — nearly one in four — are part of the gig economy, with 90% using it as a side hustle for extra income, according to a previous H&R Block Canada survey.
Moonlighting can be a win-win for both employees and employers, notes TalentLMS.
They note that it brings to the workplace:
- Diversity of skills and ideas.
- Increased job satisfaction.
- Enhanced flexibility and retention.
- Financial stability and productivity.
- Skill transfer and cross-pollination.
- Networking opportunities.
To balance the benefits with the challenges that having a side hustle could bring to employers, TalentLMS suggests that employers do the following:
- Establish moonlighting policies: Clear employer policies on second jobs can help avoid conflicts of interest. And ensure employees respect their primary job, meaning they do things like stick to their work schedules and keep company information confidential,
- Encourage and support employees who moonlight: Companies can encourage and support employees who moonlight by providing them with resources and training.
- Celebrate the successes of employees who moonlight: Recognize their achievements and provide them with opportunities to share their experiences with the rest of the workforce.
- Continue to support training and development: Employees may gain expertise and skills through working a second job. But to ensure they continue to grow, invest in the upskilling and reskilling that will help them succeed in their current roles. Help them see that you care about their future with you.
- Offer financial wellness programs: Help lighten the income worries that may be driving people to seek additional employment. Create a financial wellness strategy and offer training that will help them manage their finances.