Income Stacking: What Employers Need to Know and How to Handle It

Over the last few years, the HR world has been awash with workplace buzzwords. We have heard about “quiet quitting”, “quiet firing”, “resenteeism” and “career cushioning”, all designed to describe changing attitudes towards work and employment. The latest term gaining attention is “income stacking”.  This is where an individual takes on additional employment or income-generating work alongside their primary role.

While the phrase may be new, the concept itself is not. Employees have always taken on second jobs to supplement their income. What has changed is the rise of remote and hybrid working, which has created new opportunities – and new challenges – for employers trying to manage productivity, performance and accountability.

As the cost of living continues to put pressure on household finances, more employees are looking for ways to supplement their income. One trend receiving increasing attention is “income stacking” – where an individual takes on additional employment or income-generating work alongside their primary role.

For many employees, this may simply mean working a few hours elsewhere in the evenings or at weekends. However, with the rise of hybrid and home working, some employers are discovering that employees may be undertaking multiple jobs at the same time during contracted working hours.

This raises an important question for employers: when does having a second job become a problem?

The answer is not always straightforward. While there is nothing inherently wrong with an employee earning extra income, employers do have legitimate concerns around performance, wellbeing, contractual obligations, confidentiality, and conflicts of interest.

Is It Wrong for an Employee to Have a Second Job?

Not necessarily.

Many employees have always supplemented their income through second jobs, freelance work, self-employment, or side businesses. In most cases, employers are unlikely to have concerns if the additional work is carried out outside normal working hours and does not impact the employee’s ability to perform their role.

Problems arise when secondary employment begins to affect attendance, performance, productivity, availability, or health and wellbeing. Employers are entitled to expect that employees devote their full attention to their work during contracted hours and that they remain fit and capable of carrying out their duties.

For many small businesses, the issue is not whether an employee has a second source of income. It is whether that additional work is affecting the business.

How Do Employers Know if Someone Is Income Stacking?

This is often the first question employers ask.

The reality is that most employers do not discover income stacking because an employee openly discloses it. More commonly, concerns arise because managers begin noticing changes in behaviour, performance, or availability.

An employee who was previously reliable may start missing deadlines, becoming difficult to contact, arriving late for meetings, or taking longer to complete routine tasks. There may be a noticeable decline in the quality of their work, increased absence levels, or signs that they are struggling with fatigue.

In remote and hybrid working environments, managers may also notice unusual patterns of availability. Employees may regularly be unavailable during working hours, slow to respond to messages, or consistently decline meetings without a clear explanation.

Of course, none of these signs automatically mean an employee is working another job. There could be many reasons for a change in behaviour or performance. However, when concerns begin to emerge, it is important not to ignore them.

Focus on the Impact, Not the Suspicion

One of the biggest mistakes employers make is trying to prove an employee has a second job before addressing the issue.

From an HR perspective, the more effective approach is to focus on what you can see rather than what you suspect.

If performance has deteriorated, address the performance concerns. If attendance is becoming problematic, discuss attendance. If deadlines are being missed, focus on the missed deadlines.

Approaching the conversation in this way keeps the discussion objective and evidence-based. It also avoids creating unnecessary confrontation or damaging trust.

A manager might say:

“I’ve noticed that you’ve missed several deadlines recently and there have been occasions where you’ve been unavailable during working hours. I wanted to check in and see if there is anything affecting your ability to carry out your role.”

This approach creates an opportunity for the employee to explain their circumstances without feeling accused.

Having the Difficult Conversation

Many employers worry about raising concerns because they do not want to appear intrusive or unsympathetic. Given the current economic climate, some employees may genuinely be struggling financially and taking on additional work out of necessity.

This is why the conversation should be approached with curiosity rather than accusation.

Ask open questions and listen carefully to the responses. Seek to understand the situation before making assumptions.

If the employee confirms they have taken on additional work, explore the practical implications. Consider whether the work is being undertaken outside contracted hours, whether it creates any conflict of interest, whether it impacts performance, and whether the employee is working excessive hours that could create health and safety risks.

In many cases, employers discover that the issue can be managed through open communication and clear expectations.

When Does Income Stacking Become a Disciplinary Matter?

There is a significant difference between an employee working a few extra hours elsewhere at weekends and an employee undertaking another role during the hours they are being paid by their primary employer.

Where an employee is carrying out work for another organisation during contracted working hours, employers may be dealing with a breach of contract, breach of trust and confidence, misconduct, or potentially gross misconduct depending on the circumstances.

Similarly, if an employee has failed to disclose secondary employment where their contract requires them to do so, this may also justify formal action.

However, employers should avoid jumping to conclusions. Any concerns should be investigated thoroughly, evidence should be gathered, and the employee should be given an opportunity to explain before decisions are made.

As with any disciplinary matter, fairness and consistency remain critical.

What Should Employers Have in Place?

The best way to manage income stacking is to set expectations before issues arise.

Employment contracts should clearly state whether employees require permission before taking on additional work. This helps employers manage conflicts of interest, confidentiality concerns, working time obligations, and health and safety risks.

Policies should also explain the process employees should follow if they wish to undertake secondary employment.

Many employees are surprised to learn that employers are often less concerned about the existence of a second job than they are about discovering it after problems have emerged.

A transparent approach benefits everyone.

A Practical and Balanced Approach

As HR professionals, we have to recognise that the world of work has changed.

Employees face financial pressures that many have never experienced before. At the same time, employers are entitled to expect commitment, performance, and honesty from their workforce.

The most successful employers are those who strike the right balance. Rather than taking a blanket approach, they assess each situation on its own merits, focus on the impact on the business, and maintain open conversations with employees.

Income stacking is likely to become increasingly common over the coming years. Employers who have clear policies, robust contracts, and confident managers will be best placed to manage the risks while maintaining positive working relationships.

Final Thoughts

If you suspect an employee may be income stacking, resist the temptation to play detective.

Focus on what you know rather than what you think you know. Address any performance, conduct, attendance, or availability concerns promptly and professionally. Ask questions, establish the facts, and keep an open mind.

Most importantly, remember that having a second job is not necessarily the issue. The real issue is whether it affects the employee’s ability to do the job they were employed to do.

By taking a practical and balanced approach, employers can protect their business while still recognising the realities of modern working life.