Side Jobs and Individuals, Side Jobs and Companies

2019/11/18

In January 2018, the Ministry of Health, Labour and Welfare's Model Rules of Employment were revised. The template's clause stating "do not engage in the business of other companies without permission" was deleted and replaced with "it is possible to engage in the business of other companies outside of working hours." Many companies refer to this model when creating their own rules of employment, and side jobs have suddenly come into the spotlight.

The background of this revision is the decline in the working-age population. Amidst the declining birthrate and aging population, the government has taken successive measures such as promoting the participation of women, extending the retirement age, and accepting foreign nationals. However, the labor shortage has not been resolved, and attention has turned to company employees whose overtime hours have decreased due to work-style reforms. Furthermore, the maldistribution of labor is serious, and small and medium-sized enterprises are seeking human resources who can work even for short periods.

In recent years, wage increases have not progressed as expected, and seniority-based systems and lifetime employment have begun to crumble. In large corporations, there has been an increase in "mandatory retirement from managerial positions," where both the appeal of the work and the treatment decline after a certain age. Among middle-aged and older people, the question of how to live a 100-year life has begun.

Meanwhile, younger employees are also looking at the situation of their seniors and have begun to think about honing their own skills and earning side income. The number of acquaintances starting businesses has increased, and life options that do not rely on a company have come to feel more familiar.

Furthermore, some surveys show that among the personnel systems desired at a new place of employment, the permissibility of side jobs is of the greatest interest. Rather than simply high pay, companies that offer the freedom to have a side job are being sought after.

Next, how has the corporate view of side jobs changed? Nearly 70% of companies still prohibit side jobs. Reasons cited include: 1) encouraging long working hours, 2) difficulty in tracking working hours, 3) inability to concentrate on the main business, 4) information leakage, and 5) competition. Major companies such as Rohto Pharmaceutical, Kagome, and Shinsei Bank have lifted the ban, but what is expected there is not just "side jobs" but "multiple jobs." The following points are cited as benefits of multiple jobs.

The first is the effect of "boundary-crossing learning." In a small, young company, one might have the opportunity to be in charge of an entire business in their 30s. However, in large corporations, there are few opportunities to perform work from a company-wide perspective when young, and even if told to suddenly handle management at age 50, the skills are not there. Multiple jobs compensate for this. It allows employees to experience self-contained tasks (OJT) in a boundary-crossing environment outside of work (OFF-JT).

Second, a contribution to open innovation can be expected. in today's fast-changing world, it is rare for all the resources necessary for a new business to be available in-house, but there is a lack of know-how on who to partner with outside the company and how.

In the process of pursuing multiple jobs, employees often face hurdles and need to collaborate with external experts. Through multiple jobs, it is expected that they will expand their external networks and improve their ability to utilize them.

Of course, there is a risk that the multiple jobs will take off and the employee will leave the company, but modern companies are also required to expand their main business by forming networks with spin-off companies.

Third, there is an effect as "retention and scouting." Previously, when a talented employee offered to "become independent and start a business," the only options were to persuade them to stay or accept their resignation. However, if the option of multiple jobs exists, the company can retain talented employees while they challenge their own potential.

Conversely, when wanting to hire talented personnel from the outside, there are cases where they cannot be accommodated within the company's personnel system. For example, experts in Fintech or AI cannot be hired without paying high salaries. In such cases, proposals have emerged asking them to help with the company's work as a multiple job while remaining at their current post, or to change jobs on the condition that multiple jobs are permitted. For example, Cybozu hired a Microsoft engineer on the condition of allowing multiple jobs.

And fourth, the role of a "runway" toward starting a business can be considered. If income drops to zero upon retirement, a 100-year life is full of anxiety. However, finding a new job after retirement is extremely difficult. Therefore, during the period of mandatory retirement from managerial positions when both income and work have decreased, why not allow multiple jobs as support for preparing for life after retirement and provide a "runway" to starting a business?

Side jobs, which once had a shady image, have gained attention as a new personnel system that supports individual self-actualization. In the future, the mismatch of "70% of companies prohibit side jobs, while 70% of employees are interested in side jobs" will likely change.

However, pursuing multiple jobs with a stance of "what should I do once it's permitted?" will fail. Unless it is a job you are dying to do, you won't be able to overcome the hurdles when you hit them. A world with options is also a world where self-responsibility is required.