For many nonprofit organizations, offering competitive salaries can be a challenge. Instead, nonprofits often provide more substantial benefits, meaningful work, and community impact as part of the total compensation package. Even so, employees sometimes take on a second job to supplement their income or pursue a personal passion. While this can be understandable, it also raises concerns that your organization might need to be considered.
Conflicts of Interest
A second job may create a direct conflict with the nonprofit’s mission or activities. For example, an employee working for a for-profit competitor, vendor, or organization with a competing mission may be in a position to share sensitive information, intentionally or unintentionally. Clear and comprehensive policies that define what constitutes a conflict are crucial in protecting your organization and ensuring that employees understand the expectations, making your employees feel secure and informed.
Work Performance and Fatigue
Nonprofit work often involves long hours, emotionally demanding situations, and lean staffing. When an employee works two jobs, fatigue can affect reliability, energy, and focus. Even highly motivated employees may struggle to balance their responsibilities. Employers benefit from proactively monitoring performance indicators and addressing concerns early with compassion and clarity, making them feel proactive and in control.
Scheduling and Availability
Flexibility is a hallmark of many nonprofit workplaces. Yet, availability can become a challenge if an employee must coordinate schedules with another job. For roles that involve client service, program delivery, or on-call duties, reduced flexibility may place strain on the rest of the team. Establishing guidelines for outside work can help avoid scheduling conflicts.
Use of Organizational Resources
There is a risk that employees may use nonprofit resources, such as computers, phones, or even work time, for their second job. When employees use the organization’s resources for their own personal purposes, it not only reduces productivity, it may also create legal or ethical concerns. For instance, using your organization’s computers for personal business could compromise data security, while using work time for personal tasks could be considered time theft. Reinforcing the proper use of organizational resources and reminding employees that nonprofit assets are intended for mission-related work establishes clear boundaries.
Wage and Hour Compliance
If the nonprofit employs an individual in a non-exempt role, tracking hours is already a compliance requirement. When an employee holds more than one job, even outside the organization, additional complexities can arise. However, if the second role is also within the nonprofit (such as working in two different programs) the employer must combine all hours worked for the organization for overtime purposes under the Fair Labor Standards Act. Employers who are aware of multiple roles have an obligation to ensure accurate payroll practices.
Health, Safety, and Well-Being
An overextended employee may be at higher risk for stress, burnout, or workplace accidents. In the nonprofit setting, where staff often work directly with youth, vulnerable populations, or community member well-being is not only crucial for the employee, it also impacts the quality of service delivered. Maintaining open and supportive communication about work demands and providing access to wellness or employee assistance programs can help staff effectively manage their responsibilities, making them feel connected and supported.
Balancing Organizational Needs with Economic Realities
Organizations recognize that employees may need to hold second jobs due to financial necessity. Instead of viewing this as disloyalty, leaders can acknowledge the economic realities while still protecting the organization. Transparent policies, ongoing conversations, and a supportive workplace culture enable effective management of potential risks while respecting employees’ individual circumstances.
By approaching the issue thoughtfully, nonprofits can protect their mission, remain compliant, and continue to provide meaningful work environments where employees thrive.
If you have any HR questions or concerns, please contact us at HRServices@501c.com or (800) 358-2163.
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For more than 40 years, 501(c) Services has been a leader in offering solutions for unemployment costs, claims management, and HR support to nonprofit organizations. Two of our most popular programs are the 501(c) Agencies Trust and 501(c) HR Services. We understand the importance of compliance and accuracy and are committed to providing our clients with customized plans that fit their needs.
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The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources.
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