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The increasing prevalence of moonlighting in the IT sector is a growing concern for companies globally. This trend, where employees hold multiple jobs simultaneously, often without the knowledge or consent of their primary employer, has surged in recent years, driven by a confluence of factors including economic pressures, the rise of remote work, and advancements in technology that facilitate the management of multiple roles. The case of Soham Parekh, an Indian tech professional accused of working for multiple US startups concurrently, has brought the issue to the forefront, highlighting the challenges and complexities associated with detecting and addressing moonlighting within organizations. Parekh's situation, while particularly high-profile, is not isolated; background verification firms are reporting a significant increase in the number of cases involving overlapping employment, suggesting that the problem is far more widespread than previously thought. The Times of India reported a surge in moonlighting related verifications indicating firms are proactively scanning for concurrent roles or undisclosed prior engagements. These discrepancies are automatically flagged and escalated for client review, with the final decision on whether a policy breach occurred resting with the client after internal rule reviews and discussions with the candidate. The allegations against Parekh, initially sparked by a warning from Suhail Doshi, co-founder and former CEO of Mixpanel, underscore the potential risks associated with moonlighting, including conflicts of interest, compromised productivity, and breaches of confidentiality. Nicolai Ouporov, co-founder of Fleet AI, supported the allegations stating that Parekh has been doing this for years and works at more than 4 startups at any given time.The debate surrounding moonlighting is multifaceted. While some view it as unethical or even fraudulent, others argue that it is a legitimate way for individuals to supplement their income, gain new skills, or pursue entrepreneurial ventures, especially in an era of increasing job instability and economic uncertainty. However, the potential for conflicts of interest and breaches of confidentiality cannot be ignored. The case of the developer who was found to be working for five companies simultaneously, including two direct competitors, highlights the serious risks that moonlighting can pose to organizations. Such situations can compromise sensitive information, undermine competitive advantage, and even lead to legal disputes. The role of background verification firms like OnGrid and AuthBridge is becoming increasingly critical in detecting moonlighting activities. These firms utilize a variety of methods, including tracking Universal Account Numbers (UANs), employment timelines, and personal records, to identify overlapping jobs and undisclosed roles. OnGrid's data shows a significant increase in employment verification activity, with the number of cases flagged for potential moonlighting in the first half of the year already exceeding the total number for the previous year. AuthBridge reports that 5 out of every 100 candidates are found engaging in dual employment, with nearly 90% of these cases originating in the IT services sector, particularly in the states of Telangana, Karnataka, and Tamil Nadu. The firm uncovered dual employment through PF records and Form 26AS. The rise of remote work during the COVID-19 pandemic has undoubtedly contributed to the increase in moonlighting. The shift to flexible working arrangements has made it easier for individuals to take on second jobs without their primary employer's knowledge. The lack of strict monitoring tools and the perception that employees were not fully engaged during usual working hours further incentivized some individuals to seek additional income or job security. The case of the candidate who joined 50 companies in a single year and had a total record of working with 141 employers over seven years illustrates the extreme lengths to which some individuals will go to engage in multiple employment. The fact that this candidate held full-time positions at well-known names, startups, and established multinational firms, not just freelance or short-term contracts, further underscores the pervasiveness of the issue.The ethical and legal implications of moonlighting are complex and vary depending on the specific circumstances and employment contracts involved. Many companies have policies that prohibit employees from engaging in outside employment that could create a conflict of interest or interfere with their primary job responsibilities. However, the enforcement of these policies can be challenging, particularly in the context of remote work and the increasing blurring of lines between work and personal life. The debate over moonlighting is also intertwined with broader discussions about the changing nature of work and the employer-employee relationship. Some argue that traditional employment models are becoming outdated and that companies need to adapt to the evolving needs and expectations of workers. Others maintain that employers have a right to expect loyalty and commitment from their employees and that moonlighting undermines these fundamental principles. The case of Rahul Maheshwari, a former Google employee who was asked to stop sharing tutorials on YouTube and LinkedIn after HR classified it as moonlighting, highlights the tensions that can arise between an employee's desire to pursue outside interests and an employer's concerns about potential conflicts of interest. Even though Maheshwari insisted that his teaching did not interfere with his primary role, he chose to resign to avoid workplace friction. This situation underscores the need for clear and transparent communication between employers and employees regarding expectations and policies related to outside employment. The perspectives of industry leaders on moonlighting are divided. While some, like Wipro chairman Rishad Premji, have taken a strong stance against it, firing employees for working with direct competitors, others have adopted a more nuanced approach, recognizing the potential benefits of allowing employees to pursue outside interests as long as they do not conflict with their primary job responsibilities. Ultimately, the approach that companies take to moonlighting will depend on their specific circumstances, industry, and corporate culture. However, it is clear that the issue is not going away anytime soon and that companies need to develop proactive strategies for managing the risks and opportunities associated with it. This may involve implementing clearer policies, improving monitoring mechanisms, and fostering open communication with employees about their outside activities. The increase in moonlighting cases also indicates an important shift in the dynamics of the job market. Amidst low single-digit salary hikes and increasing uncertainty, employees are feeling the need to secure additional income streams, pointing towards potential dissatisfaction with current compensation and job security. This economic pressure has prompted many professionals to look for alternative income or better job security. During the pandemic, many employees were not fully engaged during usual working hours, leading some to take up other work. This evolved into a habit for some individuals. In the future, it will be necessary for companies to address these underlying factors by providing competitive compensation and creating a more stable and supportive work environment to discourage employees from feeling the need to moonlight. In conclusion, the moonlighting phenomenon is a complex and multifaceted issue that presents both challenges and opportunities for companies and employees alike. While the potential risks associated with moonlighting, such as conflicts of interest and breaches of confidentiality, cannot be ignored, it is also important to recognize the underlying factors that are driving the trend and to develop proactive strategies for managing it. By fostering open communication, implementing clear policies, and adapting to the evolving needs and expectations of workers, companies can mitigate the risks of moonlighting while also creating a more engaged and productive workforce.
Source: There is not just one Soham Parekh as moonlighting is far bigger