"Hiring isn't the only answer" — The third option of side-hustle talent

"We're short on staff" — This is a phrase that every small and medium-sized business owner has likely uttered at least once. However, when you actually try to hire, you might find that even after posting job ads, no one applies. Or, even if you do manage to hire someone, the training costs add up. If you are struggling with these issues, it is worth knowing about the option of "side-hustle talent." According to the "2024 Trends Survey on Side Jobs and Concurrent Employment" conducted by Recruit Co., Ltd., 53.7% of companies now accept side-hustle or concurrent employment talent from outside their organization, exceeding half. How do you feel about this figure?

"Full-time regular employees" are not the only source of strength

When it comes to solutions for labor shortages, many business owners first think of "hiring." Next, options like "outsourcing (BPO)" or "AI utilization" follow. However, there is actually another option between these three. That is "accepting side-hustle talent."

Side-hustle talent refers to professionals who handle tasks for your company for several to a dozen hours a week while maintaining a primary job at another company. According to the same survey by Recruit, 60.7% of companies have systems in place that allow for side jobs or concurrent employment, an increase of 8.9 points from the 2022 survey. In other words, it is becoming standard for large companies, in particular, to allow their employees to take on side jobs. As a result, talented individuals are actively looking for "side-hustle opportunities."

The important point here is that utilizing side-hustle talent is not the same as "cheap outsourcing." The average compensation is around 100,000 yen per month, with a typical workload of about 8 hours per week, and it is generally remote work. The talent pool consists mainly of veterans in their 30s to 50s working at large corporations (Source: Analysis data from JOINS Co., Ltd.). In other words, compared to the annual cost of hiring a full-time regular employee (over 5 million yen including salary, social insurance, and training costs), you can borrow the wisdom and hands of "experts in their field" for about 1.2 million yen per year.

Companies with 30 to 40 employees are seeing these kinds of results

Here are some examples of small and medium-sized enterprises that have successfully accepted side-hustle talent.

Okano Co., Ltd. in Fukuoka Prefecture (kimono industry, approx. 40 employees) faced a challenge when launching a new BtoC e-commerce site because they lacked internal expertise in e-commerce operations. When they recruited side-hustle talent, they received 34 applications. Ultimately, they hired two people: a corporate planning manager from a beverage manufacturer and a sales manager from a major IT company. They were able to launch the e-commerce site smoothly (Source: Small and Medium Enterprise Agency, "Learning from Case Studies! Side-Hustle Talent").

Additionally, Kankyo Ryokka Kogyo Co., Ltd. in Aomori Prefecture (landscaping and civil engineering, approx. 30 employees) was considering developing new sales channels for vegetables as a new business, but lacked sales and marketing know-how. When they recruited side-hustle talent, they also received 44 applications and accepted one person with experience in corporate planning (Source: Ibid.).

What both cases have in common is that "the workload was not enough to hire a full-time employee, but specialized knowledge not available within the company was needed." Side-hustle talent perfectly addressed the challenge that small and medium-sized enterprises struggle with most: "We are short on staff, but not enough to justify a full-time hire."

Are there any tasks in your company that you "want to do, but don't have the right person for"?

"Inventory of tasks" is necessary before utilizing side-hustle talent

However, if you just ask side-hustle talent to "help out with something," it won't work. Side-hustle talent can only work for a limited number of hours per week. That is precisely why you need to be clear about "what, to what extent, and by when" things need to be done.

This is not limited to side-hustle talent; it is the same for outsourcing or AI utilization. I believe that the first step to resolving labor shortages is always an "inventory of tasks."

Specifically, the following organization is effective:

- Classify current tasks into three categories: "work the president should do," "work employees should do," and "work that can be outsourced."
- From the "work that can be outsourced," separate those that "require specialized knowledge" from those that are "routine."
- Requires specialized knowledge → Side-hustle talent or outsourcing to experts
- Routine tasks → BPO (administrative agency) or automation via AI/RPA

If you try to "just increase staff" without doing this organization, you may find yourself unable to keep up with training even after hiring, or unable to give precise instructions to the side-hustle talent you worked so hard to bring in. Conversely, if you have completed an inventory of tasks, it will naturally become clear which of "hiring," "outsourcing," "side-hustle talent," or "AI utilization" is the best fit.

There are things to do "before hiring"

Labor shortage is a serious problem for small and medium-sized enterprises. However, that is precisely why relying solely on "hiring" is dangerous. Hiring takes time and money, and there is a risk of mismatch. On the other hand, with side-hustle talent, you can borrow the power of veteran talent from large companies starting from around 100,000 yen per month for 8 hours of remote work per week.

However, to reiterate, an "inventory of tasks" is essential to make the most of side-hustle talent. If it is not clear what to entrust them with, no matter how talented the person is, you will not get results.

I believe that the first thing small business owners should do is not to "look for people," but to "organize their operations." Once operations are organized, a basis for judgment emerges: whether hiring is optimal, outsourcing is efficient, side-job talent is a good fit, or if it can be replaced by AI.

It may not be that you are "short on people," but simply that your "operations are not organized." If you think about it that way, the range of options for your next move should expand significantly.

ShakeHands LLC

A business partner that organizes labor shortages from the structural level
You are short on people. But "hiring" is not necessarily the right answer.
ShakeHands LLC is a partner that addresses labor shortages and business expansion for small and medium-sized enterprises, organizing options such as hiring, outsourcing, and AI utilization to design the optimal course of action.
Rather than making proposals just to sell, we think together about choices as management decisions.