A quiet crisis is occurring within the landscape of small businesses across the UK, but it is largely going under the radar. Evidence suggests a growing number of employees within SME organisations are taking on second jobs simply to stay afloat amid the rising cost of living.
A recent LinkedIn poll I conducted revealed that 70% of business leaders from small enterprises (those with fewer than 50 employees and a turnover under £10 million) have seen multiple team members taking on extra jobs outside of their 9-5 employment. These employees are taking on this additional work to manage escalating personal expenses and the high cost of living.
Ignoring this quiet crisis is no longer an option; decisive and empathetic leadership is paramount.
The second-job trend is happening across sectors
Surprisingly, the responses to this poll spanned a diverse range of sectors, including early years support, business services, and technology. This indicates that the issue is not confined to traditionally lower-paid industries.
If we consider the early years sector (which is a lower-paid industry), staff play a vital role in shaping the learning of our young children. If these crucial workers are fatigued from juggling a second job, the quality of care they provide could suffer, with potential long-term consequences for our children and families.
Similarly, in the often high-pressure, high-salary tech industry, demands can be significant. A skilled developer spending evenings on delivery rounds will likely see a dip in daytime focus and creative output, which could potentially harm the sector.
Rising wage pressures and burn out
This second-job trend extends beyond individual financial strain. It hints at deeper issues in how businesses navigate wage pressures, employee engagement, and the looming threat of burnout, particularly within sectors already grappling with skills shortages and broader economic uncertainties.
We should be aware, as business leaders, that the implications for productivity are considerable. When our employees dedicate their time and energy to a second income stream, their focus and capacity within their primary role will be negatively affected. The risk of errors increases, and overall efficiency can suffer. Furthermore, the impact on team morale should not be underestimated. If a significant portion of your workforce is seeking second jobs to pay the bills and meet their basic living costs, this can create a sense of unease and potentially undermine a small business and what it is trying to do.
Despite this concerning data, there are glimmers of proactive leadership emerging.
The rising two-job trend harms business resilience and reputation
Business leaders, particularly those at the helm of smaller organisations, face a critical challenge. The traditional approaches to employee support may not work in this high-cost economic climate.
Leaders must reevaluate their employee strategies if financial pressures are driving their team members to source second–income streams. Without intervention, the trajectory of this second-job trend over the next six to twelve months could have serious ramifications.
A failure to address the underlying causes risks a significant weakening of company culture, a decline in overall performance, and a reduction in the resilience of the business as a whole.
Businesses may struggle to attract and retain talent, leading to increased recruitment costs and a loss of valuable experience. The quality of goods and services could also be impacted if employees are consistently overworked and stressed.
Ultimately, the reputation of a small business as a dependable employer could be damaged, making future hiring of strong and talented staff even more challenging. It is imperative to recognise that this is not solely a matter of individual financial concern; it constitutes a real business risk that requires thoughtful and decisive action.
There are solutions beyond higher wages
Despite this concerning data, there are glimmers of proactive leadership emerging. I have had many conversations with business owners who are navigating this challenge. They tell me that a commitment to open and honest communication with their teams is paramount. It is about creating an environment where employees feel heard and understood, which can be a powerful tool in ensuring loyalty and stopping feelings of isolation in their tracks.
Beyond talking, some business owners are re-evaluating their entire compensation packages to ensure they remain competitive, exploring benefits such as enhanced pension contributions or health insurance. Others are focusing on internal progression, offering upskilling opportunities that provide a pathway for employees to increase their earning potential within the company.
The importance of a supportive company culture cannot be overstated. A workplace that prioritises empathy, open communication, and genuine concern for employee wellbeing can act as a crucial buffer against the negative effects of financial strain. Initiatives such as regular check-ins, employee assistance programmes offering financial guidance, and flexible working arrangements can all contribute to a more supportive environment.
Don’t ignore this quiet crisis
Ultimately, the onus lies on the business leader to adopt a proactive stance to this two-job trend. It needs them to commit to working collaboratively to identify solutions that positively impact both the employee and the long-term health and sustainability of the business.
Ignoring this quiet crisis is no longer an option; decisive and empathetic leadership is paramount to navigating these turbulent economic waters.
