New Rules for Freelancing While Full-Time

Posted by Dave Balter on January 27th, 2010 in

There’s a standard that says full-time employees shouldn’t take on freelance work, and I think it’s time to throw that out.

According to our employee agreements, no one employed by BzzAgent should be taking on any freelance work.  Section 4, paragraph #1 states:

You agree to devote the full measure of your total business time, skill, attention and best efforts to the Company’s business and to discharge and fulfill the responsibilities assigned to you by the Company during your employment under this Agreement.  You agree that you will not render services to any other person or entity without the prior written consent of the Company, and that you shall not engage in any activity which conflicts or interferes with the performance of the duties and responsibilities of the Position.

For some companies, freelancing full-time employees is something to turn a blind eye to, like turning at a red light with a “no turn on red” sign (or, I guess,  smoking kind buds on the Boston Common in Massachusetts…).  For others, it’s considered acceptable with approval, which is an awkward process for everyone involved.  After some informal polling, it appears that to most CEOs, it’s disapproved entirely and is considered grounds for a serious discussion about the employee’s role in the business.  But this makes no sense.

We have one employee who does web design work for us full time, and is also a master bronze sculptor who often gets commissioned to make pieces in his off hours.   A creative outlet on the side – of course we’re cool with that.  We have another employee who owns a rental property up in New Hampshire, which he manages in his spare time.   That’s considered entrepreneurial which we’re highly supportive of.  Shoot, one employee started and owns the coolest retail store on the eastern seaboard, Grand.   All of these are considered acceptable – and yet, if someone is being contracted to do exactly what they do at BzzAgent (without using confidential information or working for a competitor) we consider it inappropriate behavior.  So it seems the line is drawn at only being able to freelance what you’re NOT hired by BzzAgent to do.

freelanceI think this is an outdated concept.  The fact is, few white-collar employees work 9-5 at all anymore.  We’re expected to address work issues on weeknights and often on weekends.  We’re constantly reachable and it goes without saying that many are reviewed on the merits of their “always on” capacity.   More to the point, many of us expect employees to be  constantly active within the realms of social media – facebooking, tweeting, Linked-Ining – to connect, but also to gather research, identify new clients, get better at their job.  People are working more, and not getting paid differently for it.

But really…what an employee does in their off hours – nights and weekends – is their own business.  They’re not indentured servants.

So, as long as people get their work done, don’t divulge confidential information and don’t work for a competitor, my sense is freelancing is a smart thing for a business to allow:

  • It provides employees with additional revenue without costing the company a dime
  • It enhances the employee’s skill set, as they’re required to continue honing their craft for other managers
  • It reduces any likelihood of an employee having to sneak around or even occasionally feeling guilty
  • It may reduce turnover, as an employee can make more without going somewhere else

And, quite frankly, if someone has enough time to freelance, it’s our own fault for not keeping them busy enough.

So, we’re going to try a little experiment.  For the next 3 months, I’m officially allowing all of our full time employees to freelance – if it works out, then this will become company policy going forward.  My rules are as follows:

  • This doesn’t reduce any expectation of getting BzzAgent work done ( in some ways it probably makes it even clearer that you must produce at a very high level)
  • You don’t do any freelance work during the workday
  • You bring new skills back to the office to do awesome things for us
  • You don’t get so stressed at the extra work that you freak out completely
  • You take me to lunch or buy me a beer with all of the extra money you make

Who’s with me?

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9 Responses to “New Rules for Freelancing While Full-Time”

  1. Freelance in the workplace is an awkward topic indeed. I worked in a large consulting firm for a long time. Given the scale of the organization, the message they sent regarding your side-gigs was over the top threatening. As a technology consultant interested in the world beyond the small silo they put me in, it often kept me from spending my own time exploring other technologies out of fear that whatever I created would be claimed by my primary employer.

    Great post. Look forward to reading more.

  2. Debra Born says:

    As long as an employee shows up for work for any company and puts in their 8 -10 hours or what ever is required then it’s no body’s busness what they chose to do.. In todays poor economy which seems to be getting worse people have to work longer and harder to just make ends meet. And by the way did any of you watch the presidential speech last night or just listen to the clapping after on a few words out of his mouth. I would say 80% was clapping and 20% talking. After watching for and hour and half I had had enough.

  3. Karthik says:

    Well said…..

    I totally accept this concept of freelance in this tight economical situation. At the end of the day “How much money you earned for the day?” does matter to take care of you and your family. Most of the companies are underpaying or did not hiked the salaries where in suppose to. I myself a freelance auditor enjoying the fruits of the freedom. I don’t know if i take a full time job..but as for now i am getting what i need.

    These days to perform a job the companies expects you have multi skills and they don’t need your qualification most of the time and your prime skill. So to keep up your talented skill you have to take up freelance opportunities and earn few extra bucks. I told my supervisor about this and he has no problem if i take a full time job and do the freelance work simultaneously. One should explain in a proper way and get the permission is the best solution.

  4. rhonda says:

    i think if you can hold 2 jobs great. but when you have a company as good as Buzz agent you shoul have something in writing to protect your policies and the way you do things.
    if everyone knew how i baked my cakes…they wouldnt need me.
    some things are sacred

  5. Max Kalehoff says:

    Dave, you are enlightened. More thoughts coming.

  6. If I was employed by you, in your office, I would agree with this statement. Since I am not working for you in this manner, I could care less..

  7. [...] My enlightened friend Dave Balter, founder and CEO of BzzAgent, recently challenged this antiquated policy: [...]

  8. Erwin Finer says:

    I don’t get it

  9. [...] fact is,” Dave Balter, founder and CEO of BzzAgent, says, “few white-collar employees work 9-5 at all anymore. We’re expected to address work issues on [...]

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