How to Find Out If an Employee Is Moonlighting and Deal with It

Struggling to find out if your employee is moonlighting? I get it - it's not always easy to spot!

I've also faced the frustration of noticing dips in the performance, wondering if there is something else going on.

Frankly speaking, moonlighters are a real challenge, especially when they affect their work and commitment to your company.

Thankfully, there are ways to handle it. So, obviously, it’s wise to have a clear sense of what you are dealing with and stay vigilant.

In this article:

• Signs of employee moonlighting
• Most effective tool to detect moonlighting
• How to deal with moonlighting employees

Let’s get into every nook and corner in this regard.

Forms of Moonlighting You Must Know

Moonlighting or employee dual employment refers to the practice of engaging in a second job or freelance work outside one’s primary job.

It can be in different forms like:

• Freelancing: Take independent contracts in their expertise area.
• Running a business: Run their own business.
• Part-time jobs: Have extra jobs in a different field.
• Competing employment: Work for the competitors. It raises conflict of interest concerns.

Signs Indicating Your Employees Are Moonlighting

Recent research shows that about 36% of Americans currently have side hustles, as this trend brings more income.

True, moonlighting isn’t inherently illegal. However, sometimes, it can result in operational and ethical challenges for employers, demanding early action.

And here, identifying the signs of moonlighting is the best method to find out the best solution to prevent it.

Let’s share the most common tell-tale signs for detecting dual employment.

Lower Work Quality

Below quality work? Missed deadlines? Half-hearted attitude to the projects? Works with more errors lately?

Such scenarios are the red alert signs of a troubled employee!

It’s common that in moonlighting, employees cut corners or just maintain a strict minimum to balance all priorities.

Ultimate result? Poor work quality!

If all the other possible causes for low efficiency and productivity are exhausted, you can look into the aspect of moonlighting.

Frequent Absences or Tiredness

Of course, struggling with multiple tasks is very hard. I’ve seen that even when employees feel that they can devote 100% to each role, fatigue often catches up with them!

Moonlighting often comes with the cost of rest and sleep, leading to tiredness. And you know, what eventually shows up? More unexpected absences and more time off requests.

An article estimates that disengaged employees cost the global economy $8.1 trillion in lost productivity each year. Here, moonlighting can directly contribute to this disengagement.

Unexplained Financial Strain

Is it a steady salary? Still an employee expressing financial pressure? Sudden advance requests or showing workplace income concerns?

While these scenarios alone don’t confirm moonlighting, sudden talks about requiring extra money or taking side gigs may point to it.

Unauthorized Use Of Company Resources

Employees who have other jobs may use the company's things, like computers, machines, or ideas.

It can lead to the misuse of resources and intellectual property, which can violate company policies.

Unexplained Income Discrepancies

In some cases, sudden wealth or talking about financial issues without a clear explanation can be signs that they are potentially moonlighting.

Unexpected lifestyle changes or visible differences in income may indicate secondary employment.

How to Find Out Employee Moonlighting With Employee Monitoring Software

As someone who has handled this employee side hustle for about a decade, I must say using the right tool makes this so much easier.

One I always recommend is Apploye.

As an efficient employee monitoring and productivity tracking software, Apploye provides you insight into how employees are spending their work hours.

It will help you identify patterns that may indicate outside employment. Here’s how it supports this.

Screenshot Capturing

Apploye takes random screenshots for screen monitoring. These periodic screenshots help you oversee open applications and projects unrelated to your company.

Apps and URL tracking

It effectively tracks online activity and internet usage during work hours. It highlights any unauthorized or unrelated activities.

Activity tracking

You can check out the productivity ratio/activity ratio based on keyboard typing, mouse-clicking, and mouse movement.

Extended periods of inactivity during work hours or low activity may point to secondary work commitments.

Time Tracking

Apploye enables employees to clock in and out with detailed timesheets. Late logins and early logouts may signal other priorities.

Idle Time Tracking

The idle time tracking feature of the Apploye can also help you in this regard.

Frequent idle time, especially when not explained by meetings or breaks, is the tell-tale of divided focus.

What are the Other Effective Ways to tell if an Employee has Another Job?

Judging by the habits of Gen Z and younger millennials, the side hustle craze is only growing.

I’m not saying that all side jobs impact productivity. But it becomes concerning when it affects performance and commitment.

Here are some other effective ways to detect it.

I) Track User Activity

You can monitor employee activity during work hours. It will help you to find out unusual working patterns and performance.

Keystroke monitoring, time-tracking tools, and login/logout records can help you in this regard.

II) Check Digital Footprints

As an employer, you can check the work devices for signs of personal use during work hours.

Aggressive use of non-work-related software or applications is a strong indication of moonlighting.

You can look for employee visits on freelancing, job-hunting websites, or social media platforms.

However, always ensure your monitoring follows the company policies and legislation.

III) Conduct Surveys And Interactions

Anonymous Feedback, surveys, and regular check-ins help employees to share whether they are considering getting second jobs.

This feedback can show if the current job is enough for the breadwinners. These surveys determine how engaging the employees are and how they feel working for you or for your business.

Sometimes, it can also help you understand what can push someone to start moonlighting.

Based on the feedback, you will be able to make the necessary adjustments.

What Do You Do If You Suspect Your Employee Is Moonlighting?

In some cases, moonlighting may result in a burned-out employee who will definitely not care enough about the company.

Some do it for the money, while others do it for their creative fulfillment.

Whatever the reason is, you’ll need to take action for your business interest.

So, how to deal with moonlighting employees?

Here are some suggestions:

Measure Performance

Moonlighting employees must maintain similar performance standards to other employees.

If there is a dip in productivity, focus on what the actual problem is with their performance, not just moonlighting itself. Never jump to conclusions.

Moreover, if the employee activity isn’t affecting the work performance or engagement, it doesn’t suffer at all; moonlighting is not a critical issue.

You should deal with moonlighting only when your employee is not meeting performance expectations.

Have A One-on-One Conversation

Suspecting an employee is moonlighting? The best idea is to have an open chat with them.

Meet the employee in private and be straightforward. Show your appreciation for their contribution and let them know you’ve noticed performance issues.

Give them the opportunity to respond. Express that you’re trying to help them. If your employee agrees that they are having a second job, listen and acknowledge it.

Remind them they still must meet the performance standards of your company.

At the end of the meeting, ensure your employee clearly understands your expectations.

Come to an agreement on expectations going forward. I personally suggest acknowledging the discussion in writing.

Set Clear Boundaries

You have to be upfront about job expectations. That’s especially true when you are dealing with the moonlighting issue.

Make it clear to your employees that the assigned work schedule is a must requirement and the main part of the job.

If your employees have an outside job, they must fulfill their expected regular duties within the agreed work hours.

Your company is under no obligation to adjust the work assignments or schedules to fit their side hustles. It should be written clearly in your company policies.

Collaborate on A Solution

You can also work with your employees to find effective solutions.

Make sure that it maintains productivity and doesn’t compromise the company standards.

If moonlighting affects job performance, ask job specialists to find solutions.

For instance, adjusting the workload or schedules to prevent burnout.

Take Disciplinary Actions

alt text: A desk with legal documents and a gavel beside a cash-filled envelope, symbolizing job legality ambiguity.

Still, if your employee's second job creates conflicts of interest or affects their job performance, you can take disciplinary actions as the business owner or employer.

You won’t be alone in this case.

Even companies like Wipro, Infosys, and so on have taken disciplinary actions to deal with moonlighting employees.

Some disciplinary actions that you can follow are:

• Issue formal warning letters.
• Suspend moonlighting employees whose performance and productivity are affected.
• Terminate employment for serious violations, like an employee sharing confidential information or breaching the company's moonlighting policies.

How to Prevent Future Moonlighting Issues

Prevention strategies actually focus on creating clear policies, open communication, and ensuring that employees feel valued.

Let’s discuss the tactics to prevent moonlighting and its probable future issues.

I) Establish A Clear Moonlighting Policy

Although there’s no federal law that prevents moonlighting, you can have your HR expert draft a company-wide policy for your employees to follow.

It will clearly describe what is acceptable and what is not.

If the employees violate company policies, you can take action.

Be sure to include :

• Conflict of interest clauses
• Your company guidelines on secondary employment
• Consequences of violating the company policies

Moreover, consider a few matters when creating a moonlighting policy specific to your company.

• Can your employees work in other industries or unrelated fields after working hours?
• Do your employees need to inform their managers before taking side hustles?
• What will happen if the employee takes a second job without approval?
• How will this affect the rights of the employees to the benefits you offer?

II) Implement Non-Compete & Confidentiality Agreements

You can also use legal agreements to prevent the moonlighting of employees.

Here, employees will agree not to compete with the employer's competitors during and for a specific time after the employment period.

Also, it will include the fact that sensitive information about the company will not be disclosed.

III) Use HR Technology & Analytics

In my experience, using HR technology and analytic tools is the most effective way to track employees' work patterns.

Through this, you can identify the potential moonlighting risks early and address the issue proactively.

IV) Provide Regular Increments

You know most of the moonlighting employees choose to adapt to dual employment to earn more, as the cost of living is increasing and there are low salaries.

So, you can offer your employees regular increments. It will reduce the need for a second job, enhance their job satisfaction, and encourage them to stay with you.

The result will be less employee turnover, which itself only costs the business 33% of the employee’s annual salary for replacement.

Here are some effective ways:

• Increase their salaries
• Offer yearly bonuses
• You can also offer a performance appraisal
• Run reward programs like monthly giveaways

V) Offer Internal Career Growth Opportunities

Sometimes employees engage with their second jobs to learn new skills, especially those skills they are not getting at work.

If you offer them training programs and growth opportunities, it will keep them engaged in your work. Ultimately, reduce the need for moonlighting.

Final Words

Employee moonlighting is a complex issue that requires a strategic approach to sort it out.

All in all, proactive monitoring and open communication are a must to find out and address the moonlighting craze.

Take the red flag signs into account and discuss them with the employees, regardless of their intention.

It’s about workplace integrity and ensuring fair practices for all. So, stay vigilant.

Use Apploye to detect moonlighting. The tool will help you ensure the employee remains dedicated to the success of your business while gaining personal growth.

FAQs

Can an employer fire you for moonlighting?

Actually, it depends. The employer can fire an employee for moonlighting, especially if it violates the company policy. However, workplace employment rights may vary. So, you should review your contracts for HR compliance and moonlighting legal issues.

How can I check someone's employment history?

You can conduct a reference check to learn someone’s employment history. Verify employment with previous employers or have an employee background check. This will help you confirm the employee's past roles and experience.

When would an employer need to restrict a specific employee from moonlighting?

Employers can restrict an employee from moonlighting if the second job substantially interferes with the primary job duties or creates a conflict of interest. Working for a competitor or sharing confidential information is another major risk. These actions can violate company policy and harm business interests.