Side Jobs and Individuals, Multiple Jobs and Companies

In January 2018, the Ministry of Health, Labour and Welfare revised its Model Rules of Employment. The template removed the clause "do not engage in the business of other companies without permission" and replaced it 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 lifelong employment have begun to collapse. In large corporations, there has been an increase in "post-retirement age" systems where job appeal and treatment decline after a certain age. Middle-aged and older people have begun to ask themselves how they will live through the "100-year life."

Meanwhile, younger employees have also seen 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.

Additionally, some surveys show that among the personnel systems desired at a new place of employment, the possibility of having a side job is of the greatest interest. Companies that offer the freedom to have a side job are being sought after more than those that simply offer high salaries.

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 manage a business at age 50, they lack the skills. Multiple jobs compensate for this. It allows them to experience self-contained operations (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 know-how on who to partner with outside the company and how to do so is scarce.

In the process of employees pursuing multiple jobs, they often face obstacles 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 a multiple job 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 (securing and maintaining human resources) and scouting." Previously, when an excellent 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 excellent employees while allowing them to challenge their own potential.

Conversely, when a company wants to hire excellent talent 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 unless they are paid high salaries. In such cases, proposals have emerged to have them help with the company's work as a multiple job while remaining at their current job, or to have them change jobs on the condition that multiple jobs are permitted. For example, Cybozu has hired Microsoft engineers on the condition of allowing multiple jobs.

And fourth, the role of a "runway" for starting a business can be considered. If income drops to zero upon retirement, the 100-year life is full of anxiety. However, finding a new job after retirement is extremely difficult. Therefore, during the post-retirement age period when both income and work have decreased, why not allow multiple jobs as support for preparing for life after retirement and provide a "runway" for 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 obstacles when you hit a wall. A world with options is also a world where self-responsibility is required.