Companies are willing to allow ethical moonlighting.
IT companies are understandably concerned about employees becoming unproductive due to
moonlighting distractions. However, there is no consensus among companies on how to handle this
issue. Some large companies are taking a hard stance, while others are reluctantly accepting it. This
leaves employees confused, wondering if staying honest and loyal is really the smart thing to do. There
is a need for a consensus so that all companies can adopt a common code of conduct and clearly
communicate it to their employees.
In April 2023, we conducted a survey with the objective of determining if companies are willing to
allow, condone, or encourage certain activities that could be considered "ethical moonlighting."
This article presents the results of that survey.
Target Sample Population
Before discussing the findings of the survey, it is
important to consider the sample population that
was used for the survey. The sample population
had some biases that were influenced by location,
network reach, and seniority of rank.
It is worth noting that 37% (22/60) of the survey
participants preferred to remain anonymous,
indicating their reluctance to be transparent
about this sensitive issue. One participant even
expressed his fear that having a policy on
moonlighting would make it "official."
The pie charts in the left-hand column represent
63% of the sample population whose identities
are known. Based on the pie charts, the
conclusions of the report should be viewed as the
opinions of companies that are:
Based in Pune (18/38) or Bengaluru (6/38):
The problem of moonlighting is likely to be
more prevalent in companies located in large
cities, where employees may work from home
due to long commutes.
Represented by CXOs (22/38) or Founders
(10/38): This survey mainly captures the
perspective of top management in companies.
Employees at lower levels may have a
different point of view.
Mainly small (20/38) and mid-sized (9/38):
Smaller companies are more likely to take a
lenient approach to moonlighting. This survey
excludes large companies that are more likely
to take a hard stand.
Earlier article on sunlighting vs moonlighting
In the past, the author had written an article on the topic of "sunlighting" vs
"moonlighting" in Forbes Technology council. The term "sunlighting" was used to
describe ethical moonlighting. The author had also conducted two separate surveys on
LinkedIn, where employees felt that they owned their time beyond eight hours, while
employers seemed to have reluctantly accepted it. Only 21% of the companies
surveyed felt the need to have a strict policy on moonlighting.
Moonlighting- most employees want it, most employers are reluctant, quiet or helpless
Employees Companies
These surveys and the conversations that followed the publication of the article have
led us to believe that there is a possibility of finding a common ground where
companies and employees can collaboratively define what is considered ethical and
what is not. One possible outcome could be the development of guidelines for
companies to create their own policies. However, why is there a need for such
guidelines or a code of conduct? Although we did ask this question in the survey, here
is what we think about it.
There is a reason to open this can of worms.
Many companies, some of whom have chosen to remain anonymous, feel that having a
policy would be seen as giving tacit permission for moonlighting. However, we have our
own perspective on this matter. Keeping quiet will only do more harm than good.
Ambiguity leads to confusion and a lack of trust.
On one hand honest and loyal employees
might feel short-changed as they see
others doing what can be called as
“unethical moonlighting” going
unpunished. “You can do it as long as you
are not caught doing it” – leads to an
unhealthy game of police and thieves.
Only 38% would escalate such instances to
the management as seen in one of the
LinkedIn Surveys.
Transparency is the foundation of trust. Any company that is ambiguous or silent on
this topic will leave employees guessing. Eventually, everyone will make convenient
assumptions. What appears innocuous to employees could be very harmful to the
company's business. A lack of explicit policy could allow a middle manager to
deliberately overlook a billable employee who is known to be engaging in moonlighting.
Shallow revenue goals may take precedence over deeper issues concerning the
company's legal obligations, data security, and business risks.
Do they have a policy?
When asked, it turned out that very few companies have an explicit written policy
(5/60), and all of them assume that all moonlighting is unethical. There were a few
companies (7/60) that have a tacit understanding (which may or may not be written)
that certain types of moonlighting are allowed.
Most companies (27/60) prefer to deal with moonlighting by using standard clauses in
the appointment letter. However, we have a few questions: When was the
appointment letter issued? Was moonlighting as prevalent then as it is today? Does the
appointment letter mention the term "moonlighting"?
Another significant group (20/60) assumes that everyone knows that "moonlighting" is
not allowed, which seems like an excuse not to have a written policy. Therefore, the
answer is, "NO, MOST COMPANIES DO NOT HAVE A POLICY.
Are they willing to change? (Do they want to have a policy? )
On one hand, most companies have shied away from having an explicit policy. On the other
hand, the majority of them want to have a policy and want to change. Of the sample, 21 out
of 60 felt that it is hard to implement, but it is worth the effort. Eleven out of 60 felt that it
must be done as it is the need of the day. Only 6 out of 60 felt that there is no need to discuss
it. This means that 90% of the sample felt the need for a change, but they are wary of their
ability to implement it. It is easy to make rules, but hard to ensure compliance. Fifteen out of
60 are concerned about whether employees will be transparent about it. This is a very valid
concern, so we decided to ask the employees. Please see their responses in the following
section
Would employees be open and transparent?
It turns out that 50% of the employees who responded to the survey are willing to
collaborate by allowing companies to directly or indirectly monitor their activities. Employees
cannot have the freedom to work on external projects and job security in their day jobs
unless they are open and transparent. Transparency is the foundation of trust, and trust can
be further strengthened by linking performance to pay.
. Companies need not micromanage as
they are assured of getting their
money's worth. Pay for performance
can be managed in two ways:
• No change in the base pay, but a
pay cut if the performance
drops.
• Lower base pay plus an incentive
based on performance.
There can be a combination of the two.
Some companies can start using smart
contracts to manage pay.
What is allowed and what is not?
As the first step towards starting the process of collaboration, we asked the companies if
they would consider "condoning" or "encouraging" certain types of "ethical moonlighting". As
discussed in the opening paragraphs of this article, the sample was mainly composed of small
and mid-sized companies from Pune, with a few from Bengaluru and Hyderabad
Conclusion
As you can see from the table and chart above, there are many innocuous activities
based on hobbies or sports that companies encourage. Moreover, there are other
activities that can be encouraged because they complement the skills required for
the job - for example, conducting meetups or hackathons. These activities not only
help employees upskill, but they may also enhance the company's brand image.
There are unmet skill needs within the company that can be met by doing "internal
moonlighting". Many companies would encourage it as it would not only help them
win their clients' confidence but also build a culture of cross-pollination and free
flow of ideas.
Teaching is the best form of learning, and organizations that employ good teachers
benefit from their mentorship both within and outside the company. Employees
love companies that help them build their skills, and they become brand advocates.
It's no wonder that, as per the survey, many companies would encourage "ethical
moonlighting" that involves teaching.
Finally, it would be heartening to see companies open up and write explicit policies
that state what is allowed and what is not. This will start a new era of trust,
transparency, and ethical behavior.
