: for love and money · hustleand half of employees have had a side ... like/love. most are funding...

| W O R K P L A C E T H O U G H T L E A D E R S H I P

: for love and money

SIDE

Whether trying to make ends meetor chasing their passion...

| W O R K P L A C E T H O U G H T L E A D E R S H I P

your employees are increasing their workload with side hustles. But side hustles can offer benefits, such as a creative outlet or another needed source of income.

With nearly 50% of employees feeling it is getting more and more difficult to make ends meet, many are turning to selling items online, second jobs, or picking up extra work at their primary job.2

Nearly 1 in 5 households currently have a side hustle and half of employees have had a side hustle at one time or another.1 We looked at how participants are bringing in extra income and what motivates them.

Employees with side hustles spend about 8 hours/week working extra1

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Why do the hustle?

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Understanding the motivations of your employees can give you insights on how to both retain and incentivize your workforce. Our research found the main driving force is financial insecurity. Two-thirds of people report having significant money worries.2

Most employees use the side hustle money just to cover the basics (e.g., bills, debt).1

34% pay basic household bills

43% pay off debt (e.g., credit card, student loans)

42% fund “small extras” like social events

21% pay for kids' activities

4 out of 5pay for the

basics1

36% pursue my hobbies/passion

9% purchase luxury item(s)

44% travel/go on vacation3 out of 5pay forextras1

25% be more secure in retirement

36% have emergency funds or just in case money3 out of 5save for the

future1

Employee motivations and side hustlescan vary according to each person’sunique situation.


Paycheck to Paycheck3

Employees facing today’s immediate financial challenges.

Avg. Age: 4957% Women/43% MenAvg. Income: $48,000Avg. Balance: $12,000

“Helps me stay afloat”1

“Helps me be cautiouslyluxurious”1

“Helps mepay for the

little extras”1

“Helps me afford the

finer things”1

Foundation Builders3*

Employees getting started financially and want to be on the right track.

Avg. Age: 30Priority Balancers3

Employees needing helpmaking comprehensive

decisions and staying on track.Avg. Age: 53

49% Women/51% MenAvg. Income: $84,000Avg. Balance: $76,000

Financially Established3

Employees needing help to manage sophisticated investment needs.

Avg. Age: 5230% Women/70% MenAvg. Income: $191,000Avg. Balance: $412,000

“Helps memake ends

meet”1

Potential Earners30% Women/70% MenAvg. Income: $75,000Avg. Balance: $32,000

9 to 5 Grinders54% Women/46% MenAvg. Income: $45,000Avg. Balance: $16,000

*We identified different behaviors within the Foundation Builders and split them in to 2 groups.

0

10

20

30

40

50

60

The juggle and gain.


Paycheck to Paycheck

24% have a side hustle

Foundation Builders

Potential Earners


Foundation Builders

9 to 5 Grind


Priority Balancers


Financially Established


Employers worry about getting the most out of their employees and what the effects of a side hustle could mean for their bottom line. Our research indicates that employees with side hustles still work 40+ hours/week, and paycheck to paycheck employees are most likely to side hustle and use the additional funds to meet ”day-to-day” expenses.1

Average17% have a side hustle

Wee

kly

Hou

rs

Primary Job Only

Primary Job (among those with side hustle)

Side Hustle Job

Monthly Income from

Side Hustle$900 $778 $340$425 $1,000 $1,075

Source: Fidelity Investments, My Fidelity Connection Side Hustles survey, 2019.

Understanding the “why”



24% have a side hustle1

62% have had a side hustle at some point

How they side hustle

Lawn care

Moving

Baby-sitting

Janitorial

House manager

Selling crafts, etc. online

Mostly to meet expenses directly related to paying off debt, household expenses, and bills.2

Top 3 Overall Concerns2

• Having enough money saved for retirement

• Paying off debt• Paying for health care/

medical bills

What they say about their additional income

“Spend it and put it back into the business”

“The extra money pays my property taxes at the end of the year.”

“..mostly spend it and when I receive change I save it and then cash it in at the bank..”

Why

Median hrs. worked per week1 9 hrs.Median

monthly side hustle income1 $778

Trade-offsLess time for self/family especially when it is not an absolute necessity

“Helps me stay afloat”







Lawn careMovingBaby-sitting

JanitorialHouse manager


Mostly to meet expenses directly related to paying off debt, household expenses, and bills.2



• Paying off debt• Paying for health care/

medical bills


“Spend it and put it back into the business”

“The extra money pays my property taxes at the end of the year.”

“..mostly spend it and when I receive change I save it and then cash it in at the bank..”

Why



Trade-offsLess time for self/family especially when it is not an absolute necessity

“Helps me stay afloat”


Foundation Builders9 to 5 Grinder




Construction

Handyman

Cleaning houses


To make ends meet, use the extra income for groceries, bills, and to ease financial burden. To earn some extra money/cash.2



• Paying off debt• Job security

Why



“Helps memake ends

meet”


“..I do it because it's a quick buck that helps with something that's needed..”

“To get extra money to put toward bills/groceries.”

“To make the ends meet.“

Trade-offsLess time for self/family.Not sure if they are making enough money for the additional work.



Foundation BuildersPotential Earner




Work extra shifts at the same job

Part-time at Sales/Reception

Teach (Yoga, Finance, etc.)

Many find it convenient to work extra shifts at the same place doing something they like/love. Most are funding extras.2



• Job security• Paying off debt


“Some of it goes into our online shopping account balance for a future big purchase. I use money from teaching yoga to go straight into our bills account.”

“Usually, I use it to go out to dinner or spend on things that I want but don't need.”

“That money has the purpose, for unforeseen expenses and to gather for a good vacation.”

Why



Trade-offsLess time for self/family.Getting tired/drained.

“Helps me be cautiously

luxurious”



Priority Balancers




Transcription work

Work field shifts

Delivery for local franchise

Buy and sell things online for profit

Paying for little extras that are otherwise not mandatory. Paying for vacations/holidays.2



• Paying for health care/medical bills

• Paying off debt

Why


monthly side hustle income1 $1,000


“We tend to pay for any emergency bills that were unexpected or use it for something we want and wouldn't typically buy.”

“I usually spend it on going out and having a good time. I might save some from time to time.”

“I save mine for vacation, so we haven’t used it yet, and my husband saves his for a home.”

Trade-offsLess time for self/family/kids. Acts as a distraction.

“Helps mepay for thelittle extras”



Financially Established




Consulting

Publish content

Invest in stocks/ETFs

Selling stuff online

Market research

Adjunct professors

Increase wealth. Utilizing professional skills to make some extra cash. Mostly to earn a little “extra” money.2



• Paying for health care/medical bills

• Paying off debt

Why


monthly side hustle income1 $1,075


“I spend the money on anniversary, birthday gifts, holiday traditions.”

“Got a second home so we can rent it or go late in the week to enjoy nature.”

“.. travel to other cities, go out to restaurants, organize family parties..”

“I use it for entertainment purposes or save it up for a larger purchase.”

Trade-offsSometimes it is risky.Give up time to pursue hobbies.

“Helps me become more

secure in retirement”

“Helps me afford the

finer things”


A driving force for many side hustles is the stress about being financially prepared.


While 4 out of 5 are concerned in general about the future, 77% are specifically concerned with having enough money saved for retirement.1

3 out of 4 are concerned with just covering the basics. • 46% are concerned with paying for health care/medical bills. • 43% are concerned with paying off debt1

What can we do to help our employees?

33% feel that their money worries impair their abilities to be fully focused at work2

We can help employees better manage for the future.


Start with a financial wellness program

Financial wellness programs can help your employees feel less stressed about their finances. Help them address their financial concerns about debt, medical expenses, and retirement.

To get started Fidelity offers a Financial Wellness Assessment you can share with your employees to help them better manage their financial future.

68% of participants are open to their employers helping them better manage for the future1

3 out of 5 employees are using their additional earnings for the little extras and luxuries.1 We can help them create savings goals for those big purchases, all while saving for the future. Encourage employees to visit the Planning and Guidance Center to get them started.

http://www.netbenefits.com/moneycheckup

https://www.fidelity.com/calculators-tools/planning-guidance-center


Endnotes1 Fidelity Investments, My Fidelity Connection Side Hustles, internal survey of My Fidelity Connection Participant Panel (945 Fidelity

Participants), 2019; Side Hustle activity with Core and Growth C Space online communities (158 non-Fidelity Participants), 2019.2 Fidelity Investments, My Fidelity Connection Making Ends Meet, internal survey of My Fidelity Connection Participant Panel (521

Fidelity Participants), 2019; Making Ends Meet activity with Core and Growth C Space online communities (193 non-Fidelity

Participants), 2019.3 Fidelity Investments, Q3 2019 WI Customer Strategy & Insights analysis.

For plan sponsor use only.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

Fidelity Distributors Corp., 500 Salem Street, Smithfield, RI 02917

© 2020 FMR LLC. All rights reserved.

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