Moonlighting-Yes/No/Why/Why Not?
Milind Shimpi
Experienced Leader in Global Delivery of Digital Transformation, MCA registered Independent Director. I help the CXOs to demystify digital transformation journey and help them execute and deliver for business outcomes.
Recently I read several articles in the news portal about “Moonlighting” by employees. I thought it is important to give it a comprehensive thought and share some of my views here so that there can be a neutral debate and discussions around this topic. By no way I know all the aspects but here is what I need to share with you all. May be this can have a neutral debate. This article is only to share and understand other points of views. I am not against or for Moonlighting now but raising some views here.
Let me start with the a general definition as given in one of news portal: Moonlighting is the practice?of taking up a second job during or outside the normal business hours of primary employment. Most private organizations have policies in place that prohibit this and take strict actions against the employees taking up outside gigs. However, some firms allow employees to work a second job, especially if they are on a contract basis.
Why do people need two (or more) jobs?
The second job often comes in handy for employees if their income in the primary work is low and they need additional resources to meet their everyday needs. Sometimes even the greed for money drives it.
?In some cases, a person might consider parallel employment to upskill and pursue a job profile that fuels their passion. In certain cases, people have additional time in hand. If their primary work does not keep them occupied throughout the day, they want to put those free hours to good use.
So primarily we are talking of 3 reasons—a) Supplementary Income, b) Free time, c) Updating of skills /passion. And in some cases, starting their own start up and joining it full time (before that they like to work for it)
At the same time, I read somewhere that in India it is illegal (but I am not sure about it) ?for full time employees to have another job.
In recent times many industry stalwarts and companies have formally called moonlighting as “cheating” and banned it. And probably rightly so. But the question is why does this happen at all? Just as what triggers corruption?
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Having stated whatever has been stated above let me ask some basic questions and share my views for my readers to think over and respond accordingly.
A)??First primary reason mentioned for moonlighting by employees is extra income. It means certainly that their income may be as per industry standards (decided by the industry cartel in a certain way or they being replaceable due to higher supply) but it is not enough for their needs or greed. Either way when I look at different sections of the society in which we live we find the same thing happening. For example, Indian cricketers though on annual contract with BCCI (for which they get paid handsomely) also play in IPL (and get paid more). So, the greed and need for money is always there but the only difference is that it is done openly and not clandestinely. There are enough doctors who are employed by the government but yet run their Pvt clinics. Same with teachers. Someone may argue that well we are comparing full time employees with professionals like doctors or cricketers, etc the fact remains money is a great motivator for all. And frankly in todays; world there is not much difference between fulltime employee or contractor in terms of job security. Would we consider directors who are on board of multiple boards as moonlighting? Afterall they are also sharing their wisdom and experience with multiple companies. So, does it mean wisdom and experience can be shared easily even if it is done with transparency and rules? What if government brings in a legislation to not allow board members to have representation in multiple boards? Or if a legislation is made to allow each person only one job? ?And mind you IT employees are called as “Skilled Manpower”. Even if they lend their skills after office hours / tasks it could be for money or greed. Greed cannot be curtailed. But if there is less disparity in pay scales between different layers of employees and management may be this can be curtailed. Or what about extending the offer of equity shares to most employees? Today the salaries at the top are at multiple times that of people lower in the rung but the bases are supposed to be strong and deliver. Also, a lot of top management guys get a big separation package also but not so for those employees in the lower levels. In fact, in some offers of IT companies (not in non-IT companies) only basic is paid during notice period. Wonder why this anomaly in India only. It is not so in US or any onsite locations.
B)??The biggest argument against moonlighting is that if an employee leaks confidential information to another competitor company for whom he is working clandestinely. Truly it is not integrity if someone leaks confidential information to any other company whether it is a competitor or not. And yes, this is a great risk and possible. Even after signing the NDA if someone is doing it then it is a bad apple but it also means the NDA is not effective. ?Secondly it is best to be transparent with your employer.?But can we assume that if a person is working for a competitor or anyone clandestinely (for money) he is leaking the confidential information? In fact, confidential information can be leaked even without moonlighting. In fact, many a times when employees change jobs, they do carry a certain amount of important information. All this explicit and tacit knowledge is exported automatically to the next organization that hires. And mind you this happens even at the leadership level where they carry with them lot of customer contacts, strategic inputs. There have been enough instances of insider trading at the top levels if we talk about integrity. How does an industry aim to tackle such leakage of information.
C)??One argument against an employee who is moonlighting (specially in India) is that the parent organization want him to focus and have a work life balance. If he works for two organization there is a high likelihood of burn out. This seems a fair statement but then how many Indian IT companies really stick to 9 to 5 (or whatever is stipulated hours) of work. At least in my experience and knowledge I have seen most IT companies push and expect 12-14 hours of work daily from the employees and on top of it the time to travel (though now it is mostly WFH). And this has caused a rise in quiet quitting trend too. In the name of cost optimization, it means one person is being employed for every 1.5 person to say the least. And therefore also we are not able to create more jobs in the industry. In fact, recently there was a news article about a CEO mentioning that the younger employees should work for 16-18 hours. I wonder is this not unfair? Is this work life balance? ?Lessons from history are that even Alexander had to go back since his foot soldiers were burnt out and tired. So, one thing we need to understand if moonlighting is to avoided then we need to ensure enough work for the stipulated hours and no over stretching of work hours on a regular basis. Otherwise, it is one sided and unilateral rule. And because of large scale unemployment in India the employees will keep quiet whatever is dished out to them as rules. But this does not motivate a person at all. Nor does it solve the problem of moonlighting. Also, I think time has come to take most employees on contract with hourly rate. At least this is very common and preferred in US and other Western countries. But Indian employers would not like this since they need to then pay by hour and also hourly rates are higher. But if contracting becomes a norm then the concept of moonlighting is really not an issue. In fact, one of CEOs of large ITSCs have said (as reported in the news portal) that as long as employees meet the productivity norms, he has no issue with moonlighting. If we have more unemployed youths in the country then social unrest is sure to follow. So, firing employees may be a short-term solution. It just means you have fired those who were moonlighting but it would have been better for you if they would have worked for more than stipulated hours in the same salary.
D)??As a solution to tackle moonlighting what technical attempts have been made? Has anyone thought of any idea. Well, I can propose one here. Normally anyone working for another company (IT) need to login to their portal. What if all IT organizations make it mandatory to login with name and Adhar card and password? This will ensure that only legimate employees can login the portal (even if they have ghost name, they cannot have a ghost adhar number which is valid). Obviously, this will take care of those who have a portal and official id (mostly most IT companies have webmail). This means employees cannot login simultaneously in two different portals (this will need some kind of control and cooperating with Adhar authority (Industry - Govt cooperation is needed) to ensure that even in a different time zone slot this is monitored) or may be some kind of Block Chain solution to login can be applied. Another way could be to create virtual ODCs (since most of the times now it is WFH) which will allow only legal / authorized employees in the virtual ODCs.
E)??In the end I would say Moonlighting should not be practiced in defense and other strategic importance of national security. But for Pvt / corporates we need to evolve a more transparent framework where in the employees are educated and trusted and so satisfied that they do not need to moonlight. And even if they need to then under certain conditions they can be allowed. Specially if we consider each organization as a family, I am sure this is possible to be fair and transparent (and some organizations are already doing it). Otherwise, what is happening today is when employees have to be motivated the word “family” is used and when the businesses are going down (due to wrong leadership or decision making) then some family members are removed or fired or ask to go. Ideally all family members should stay together and rough it out.
F)???Remember an employee must be treated well while in employment and even after employment when he or she joins the alumni portal. Just by saying “Employees First” does not solve the issue with impacts both the employer and the employee. So, a transparent framework, more passion and trust with technical solution is the need of the hour.
G)??I find it though really contrasting that the aspects of defense establishments (wedded to one job 24 x 7) is being expected by the corporates and just the reverse (temporary commitment for a few years) is now be championed by the Agniveer concept. Well times are changing I would say.