Managing employees who are also influencers – the considerations

Many people now see online personality work as an attractive and lucrative income stream. However, unless someone manages to establish themselves as a household name with millions of followers, it can be more of a "side hustle" done in their spare time alongside an often completely unrelated, traditional role working for an employer.

The trend – especially among younger generations – to combine working for an employer with doing your own thing to make more money is on the rise.

Research conducted last year by YouGov revealed that 37% of Brits were considering starting their own side hustle. It found that nearly one in five women in the UK have a side hustle, rising to one in four among Gen Z. Similarly, an increasing number of brands see the appeal of influencer marketing to present an authentic image with which consumers can identify and increase engagement.

Why might combining being an influencer with other work lead to difficulties?

Several issues can arise, including conflicts of interest, such as an employee promoting competitors, reputational damage and influencers filming content during working hours. In many ways, these are common issues, which employers routinely deal with. However, the involvement of a high-profile influencer arguably raises the stakes.

An interesting question is how far employers can restrict influencing outside working hours. Employers do not have an unrestricted right to control what employees do in their own time and contractual restrictions on outside activities may be difficult to enforce if they go too far.

A blanket prohibition on outside commercial activity is therefore unlikely to be the answer. Employers should consider whether there is a legitimate reason for restricting an employee's influencing activities and whether any restriction goes further than reasonably necessary.

For example, there may be good reason to prevent an employee from promoting a direct competitor or using confidential information. It may be harder to justify controlling unrelated content produced entirely in an employee's own time.

Simply having a sizeable social media following or earning money from online content outside work will not usually be a problem in itself. However, difficulties can arise where an employee's online activities begin to overlap with their day job.

For example, an employee could post controversial content outside work on their influencer account. Someone might identify their employer in the online comments, prompting a backlash from customers or clients and creating a potential reputational issue. The obvious question for the employer may then be whether they can dismiss an employee for "going viral" for all the wrong reasons.

Such activity can seriously damage the employment relationship and may well lead to an investigation and formal action, potentially resulting in dismissal. However, employers should be wary of reacting too quickly to an online backlash.

The fact that a post has attracted criticism, or that customers are calling for an employee to be dismissed, does not automatically justify disciplinary action. Employers should first establish the facts, consider whether there is a genuine connection between the employee's online conduct and their employment, and assess the seriousness of any actual or potential damage to the organisation.

There may also be competing legal considerations. Depending on what the employee has posted, disciplining them could potentially give rise to discrimination claims, such as where the content expresses a religious or philosophical belief protected by discrimination law. Employers need to consider whether disciplinary action is justified and proportionate, rather than simply responding to an online pile-on. For influencers, this is also an important reminder that content posted in a personal capacity can have consequences for their day job, particularly where their employer is easily identifiable.

What should employers and influencers be thinking about?

For employers, clear contracts and social media policies are key. Review existing policies to ensure they adequately address employees who are not simply using social media personally but actively monetising their online presence.

Target any restrictions at genuine business concerns, such as conflicts of interest, confidentiality, use of working time and reputational risk, rather than unnecessarily controlling employees' private lives.

For employees and influencers, a side hustle does not necessarily sit outside the employment relationship. Before accepting a collaboration, employees should check their employment contract and employer's relevant policies, particularly if the deal involves a competitor or a brand operating in the same sector.

They should also be conscious of how easily their employer can be identified from their online presence. Ultimately, a little clarity on both sides can help prevent an online opportunity becoming an offline employment problem.