Good morning!
The entrepreneurial spirit is alive and well among Gen Z.
Nearly two-thirds of young people aged 18 to 35 say they’ve either started a side gig to supplement their income, or plan to start one, according to a new survey from Intuit. And 65% of those with ventures say they plan on continuing them into 2025.
But this generation doesn’t just want a small hobby. Nearly half of those surveyed say their primary motivation for starting a side hustle is to be their own boss. “In contrast to past generations who sought stability and long-term corporate careers, Gen Z and millennials are pursuing their own paths, ones that prioritize personal fulfillment, diverse income sources, and creative independence,” Marissa Cazem Potts, a consumer trends expert for Intuit wrote in a blog post about the study.
And as it turns out, most of these ventures are succeeding. Only 3% of Gen Z workers with side hustles say they have failed. And on average, these gigs are profitable after three to six months, according to the survey. Another recent study from financial services Bankrate, found that on average, side gigs bring in more than $10,000 a year.
So HR leaders take note: Many young people are interested in more than just their full-time job. But they’re finding that balancing gig work with other commitments isn’t easy. Around 44% of side hustlers cite a lack of hours in the day as their top obstacle to success with these outside projects.
That means there’s a risk that “they are going to engage in these other jobs and gigs at any time, including between 9 and 5,” Ariane Ollier-Malaterre, professor at the Université du Québec à Montréal’s school of management, tells Coins2Day. “This is because work is a lot more fluid than it used to be.”
One warning sign that a side hustler is struggling to find the right balance is an increasingly lackluster performance at their full-time job, Kira Schabram, assistant professor of management at the University of Washington’s Foster School of Business, tells Coins2Day. Young employees also tend to sacrifice their health and well-being without realizing it, she says, which can lead to burnout.
That said, it’s not a good idea to dissuade workers from pursuing their projects, especially if it’s a matter of financial stability. “If employees are not making ends meet, you will not dissuade their side work,” says Schabram. “They will just get better at hiding it.”
But having an open discussion about gig work can be used as an opportunity for a workplace to better understand whether their pay is in line with where it should be.
“Ensure people get good earnings, meaningful work, and supportive managers and peers, and they won’t have to look elsewhere for their paychecks,” says Ollier-Malaterre.
Brit Morse
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Around the Table
A round-up of the most important HR headlines.
Companies are scrambling as they attempt to figure out new security protocols for their executives following the shooting of CEO Brian Thompson last week. Wall Street Journal
Drivers are speaking out after Uber and Lyft found a loophole for a law requiring minimum pay rates. New York Times
Employers of migrant workers on temporary work permits are worried that they will lose their staffers when Trump takes office. Wall Street Journal
Watercooler
Everything you need to know from Coins2Day .
‘Barraged by threats.’ The CEO of UnitedHealth Group Andrew Witty addressed concerns over employee safety, citing the online backlash following the killing of Brian Thompson. —Brit Morse
Parental perks. Starbucks is expanding parental leave benefits for hourly workers amid smaller raises this year. —Brit Morse
Executive reaction. CEOs are struggling to make sense of their new reality after the killing of UnitedHealthcare CEO Brian Thompson . —Coins2Day Editors
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