Last month, an Indian multinational IT company was in the news for banning its employees from taking up any other employment opportunity; employees found moonlighting would have to be fired as per the company’s policy. While the company has since altered its stand on dual employment, the news has not only made headlines but continues to spark conversations led by some of the country’s top IT company leaders on the perils of what they called an ‘unethical practice’.

What can we really do about moonlighting?

While every company and individual may have a different view on moonlighting, I believe it is also important to remember that the way employees wish to work has changed dramatically. The employee-employer dynamic has shifted as have employee priorities. In the face of such drastic changes, it is more useful to try and understand why moonlighting exists and what leaders can do to ensure that employees do not feel the need for it. Remember the ‘Great Resignation’? It may have been set off by the work-from-home culture introduced during the pandemic but the reasons driving employees across the globe to quit their jobs were deeper. More importantly, it made leaders commit to finding ways to create a culture that puts their people first.

The reality is that moonlighting has existed for far too long, and observing the current employment trends shows us that it is here to stay, regardless of how we might feel about it. The question we should focus on is how can companies and leaders address this unwelcome workforce challenge without resorting to extreme methods. Is this trend simply about employees wanting to earn extra income or a work environment that limits growth?

66% of employees in India admit that the best way to grow their skills is to change companies. On the brighter side, about 90% say that they would stay at their company longer if they are given more learning and development opportunities, revealing a powerful retention tool for businesses. While strong company policies to hinder people from moonlighting is one of the more obvious ways of dealing with the challenge, organizations would also benefit from truly listening to what their employees want. At this point, let me also state that the issue is not restricted to moonlighting. An uninspired workforce, whether engaged in multiple employment or ‘quiet quitting’ (when employees do not feel motivated to do anything beyond the bare minimum), is ultimately a disengaged workforce — and that is a red flag for any organization.

It all starts with communicating

As leaders, keeping an open channel of communication with one’s team members, is the key to building a strong, trust-based relationship. In the specific case of moonlighting this becomes even more valuable. When leaders encourage transparent communication, they create a culture where employees can express themselves freely. From sharing feedback about leaders to revealing their own professional goals, employees need and deserve a platform where they can be honest without repercussions. As leaders build such a culture, employees feel more included and valued.

Transparency and clarity are also of immense importance while communicating the company’s vision, values, and policies. Both the employees and the employers must strengthen the line of communication, leaving no room for misunderstandings. Simply put, employees must, at all times, be clear on what is allowed and what might be considered a violation of the company code.

Another straightforward yet overlooked aspect is appreciation. Companies must acknowledge, appreciate, and reward employees’ efforts. While businesses expect their employees to bring their best to work, employees expect this effort to be recognized, making them feel financially and psychologically content.

The bottom line

While moonlighting might continue to exist, like it has in the past, leaders have to recognize that this trend is not just an ethics debate. It is a result of multiple factors; a new generation of workforce, an organization’s lack of willingness to listen to its employees, accept feedback, and implement change, and a profit (instead of a people-centric) culture. While there is no universal solution applicable to all organizations, one thing is for certain: organizations cannot afford to take their workforce for granted and must invest in their employees, in new and innovative ways.