Amid layoff fears, workers turn to side hustles to build skills and safeguard careers

Far from being just a way to make extra cash, side hustles are strategic moves in the quest for long-term career success. For many, side gigs are vital platforms for professional growth and exploration.

In the wake of widespread layoffs, 20% of Americans with side hustles are actively investing in their secondary income streams.

A recent Quicken survey shows almost 18% of Americans with a side hustle use these ventures to develop skills for future careers, proving gigs are not merely padding wallets. Among Gen Zers, this figure skyrockets to 44%, underscoring how the youngest generation in the workforce is proactively taking control of professional growth.

This trend highlights a significant shift in the workforce as individuals take charge of their career trajectories, utilizing side gigs to gain valuable experience, expand their networks, and enhance their resumes.

“In today’s evolving economy, more Americans are embracing side hustles, not just as a source of supplemental income but as a way to build new skills,” said Quicken CEO Eric Dunn. “Whether they’re looking to advance in their careers or eventually work for themselves, these entrepreneurial efforts are creating a path toward greater financial independence and personal fulfillment.”

Why Start a Side Gig?

Independence and self-sufficiency are major motivators for individuals opting for side hustles. In fact, 72% of Americans juggling multiple jobs strongly prefer self-employment to a restrictive corporate structure. Nearly three-quarters (73%) of those who favor this lifestyle report greater happiness in managing multiple roles rather than channeling all their energy into a single job.

Layoffs across industries concern most American workers, but those with side hustles report feeling more financial security and less financial stress, helping them escape the cycle of living paycheck to paycheck.

Growing gig popularity highlights a growing desire among workers to break free from traditional employment constraints and take control of their professional lives, leading to increased satisfaction and fulfillment in their work. Ultimately, side hustles can reshape career trajectories and enable individuals to achieve greater professional satisfaction and financial stability.

How Side Hustles Build Skills

Here are three concise ways a side hustle can enhance financial stability while building skills:

Skill Development: Side hustles allow individuals to learn new or enhance existing skills, increasing their value in their primary job. For instance, a graphic designer freelancing for small businesses can improve their design skills and learn new software tools, making them more valuable in their main job.

KnowledgeExpansion: Diverse projects expose side hustlers to different industries and practices, broadening their understanding of market trends and consumer behavior.

NetworkingOpportunities: Engaging in side gigs fosters connections with professionals and clients, leading to mentorship and potential job opportunities.

How Can Companies Help

A recent poll reveals that 41% of side hustlers admit to clocking in for two jobs at once, whether part-time or even full-time.

Companies can support employees with side hustles while maintaining boundaries for their time and resources during work hours by establishing:

Flexible Work Hours: Implement flexible scheduling options that allow employees to manage side hustles without compromising their primary responsibilities, like adjustable start and end times or designated time blocks for side projects.

Clear Policies: Establish clear policies regarding side hustles, outlining acceptable practices and boundaries. Ensures employees understand expectations while encouraging transparency about additional work commitments.

Skill Development Programs: Offer professional development opportunities for employees’ side hustles, such as workshops or training sessions. This support bolsters personal growth while enhancing skills that can benefit the company.

In light of widespread layoffs, many are investing in their secondary income streams, emphasizing financial security, reducing stress, and breaking free from the paycheck-to-paycheck cycle. Companies must recognize this shift and implement effective strategies to support their employees with side hustles.

Employers can create an environment where both the company and the individual can thrive by offering flexible work hours, establishing clear policies, and providing skill development programs.

This article was produced by Media Decision and syndicated by Wealth of Geeks.