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Monday, February 26, 2024

How Can An HRMS Help Tackle The Moonlighting Employee Challenges Proactively?

People can no longer work a standard 9–5 schedule, particularly in large cities. The pandemic gave rise to another tragedy for IT organisations, and that is the hot subject of the town, that is, moonlighting employees.

Managing remote workers is not the only challenge they face. According to online studies, employees work independently or freelance at least occasionally to earn extra sources of income. It’s understandable that moonlighting by employees has grown to be such a common practice among today’s working professionals since it allows workers to earn extra money doing a side hustle that they are already skilled at rather than being confined to their single full-time job.

However, despite the fact that this phenomenon may be advantageous for workers, employers and businesses may face new difficulties in managing them efficiently. It can cause problems like conflicts between duties and output levels and can become a security risk if employees share essential information with other organisations without permission.

Thus, it’s important to know if HRMS can at all help modern organisations curb the side effects of moonlighting employees. If so, the blog helps understand the situation better and implement the right strategies to make employees more involved and productive during their working hours.

6 Ways For An HRMS To Help Tackle The Moonlighting Employee Challenges

Setting the ground rules for secondary or freelance jobs

Employees doing second jobs is a recent trend that has been expanding rapidly. Employees moonlight because it allows them to earn significantly more money than they would as regular employees. They can choose their projects, set their own hourly rate, and work for themselves.

However, companies have to set up a moonlighting policy. This policy can be shared with all workers over an HRMS like uKnowva. HR managers do not have to send out the policy extensively to every individual. Everyone can view and read it online without breaching the security of downloading it unnecessarily to their computers.

The analytics on the uKnowva HRMS will also notify the admins on who all read the policy or who all have clicked it at least once. This will help streamline the process of rules and company policies within minutes without sending personal messages to everyone.

The policies for modern organisations must be flexible and allow workers to work beyond the contracted hours if they need to. However, the policy must also state clearly that their contractual hours must not be impacted.

Check on employee performance records on a real-time basis

An HRMS like uKnowva can help curb the moonlight effect automatically. That is possible with transparency of tasks done by employees for a particular project. Reporting managers can track their progress through goal-setting and the progress of each project and task.

They can customise the live and visual dashboard too at uKnowva HRMS. This allows the managers to know if their teams are productive for a particular project or not. As long as the teams are delivering work on time, being productive, and genuine to their deliverables, what they do beyond office hours shouldn’t matter much.

Softly communicate the consequences of moonlighting decisions

It’s best to start by letting your employees know how much you care about their well-being and how much you value their trust. Otherwise, employees might not open up and confess if they are moonlighting with side gigs.

Then, gently remind them of the adverse effects of doing a second job without telling you, so they will be aware of the consequences in advance. You can mention that the other company will be unable to offer any perks, such as healthcare, paid time off, and additional benefits, to workers who moonlight.

Otherwise, it’s always a good idea to gently remind them how to prioritise their work-related commitments. Employees must always know that they are working full-time with your company, and the moonlighting project will always be secondary. This helps employees priority and balance their work-life seamlessly. At least, clear-cut communication will help negate the negative impact of moonlighting in corporate firms.

Make a non-competition agreement

Before employing an employee, employers must have non-compete agreements in place. These contracts limit competition, safeguard the company’s intellectual property and trade secrets and forbid employees from taking on projects or cooperating as independent contractors with any rival businesses.

These contracts can be digitally signed using the eMudhra integration on uKnowva HRMS. So, even remote workers can be bound to such contracts, which are also termed NDA or non-disclosure agreements. That way, your top talent wouldn’t work for rival or competitor firms. It will prevent conflict of interest and breach of contract scenarios in the firm.

Take initiatives to make employees feel part of the team

Employers must indulge in team bonding and team-building activities. That helps to make the employees more involved in the job they are hired for. When employees become more loyal to the brand and the position, they will not favour other side gigs or freelancing projects more often.

HRMS helps to track employee engagement and satisfaction with their contribution to the system, including polls, surveys, likes, comments, uploads, etc. Similarly, HR executives can plan frequent team outings or activities. This is applicable even to remote teams. They can check how frequently employees are attending these events. Then, they will know from the data entered into the system if the employees have the right experiences and contributions to the team or not.

If the contributions are not increasing, or rather decreasing, the system can notify the same through live reports. HR executives can then make stricter and more proactive decisions to know what’s going wrong with the employee and how to enhance their involvement in the firm for a greater purpose.

Right appraisals on time

One of the core reasons for employees to moonlight is for additional income or to create a better stream for their finances. If companies gave regular and competitive appraisals to their dedicated employees, they wouldn’t think of working elsewhere. An HRMS like uKnowva helps firms to know the list of their top-performing employees and ways to give them the appraisal they deserve through the 360-degree performance management system.


The subject of moonlighting has been discussed for a while in the Indian labour market. The majority of IT businesses and their leaders are strongly against it, labelling it as “unethical.” However, employees and the general public appear to have no problem doing it within specific limitations. So, the above strategies, with the integration of an HRMS like uKnowva, help curb the moonlighting effect. It also helps turn employees into loyalists with the correct appraisals, feedback, and compensation benefits on time.

Ahsan Khan
Ahsan Khan
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