How to Prevent Employee Moonlighting With HRMS?


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Employee moonlighting, a previously unknown HR concept, has recently come into the public spotlight after the dismissal of many employees by an Indian tech firm. This has sparked intense debates over the morality of moonlighting by employees and how companies can help resolve this issue. So, let us understand how to ensure employee engagement strategies and prevent moonlighting with the help of HRMS software in India.

How to Prevent Employee Moonlighting With HRMS

What Is Employee Moonlighting?

Employee moonlighting is defined as working for a second employer while being an active employee of another. It is an old concept that has existed since the dawn of employment.

Employee moonlighting becomes a concern for the principal employer when the employee’s productivity suffers. They will be less connected with their primary organization because they are devoting their time and attention to the activities of another organization. As a result, their output begins to decline. However, suppose the second company operates in the same industry as the original company. In that case, it presents a conflict of interest because the employee may have confidential information about their primary organization.

The Rise in The Practice of Moonlighting

The current global pandemic and subsequent lockdown spawned remote and hybrid work cultures. As a result, more employees are now working from home. Furthermore, many organizations currently operate on a hybrid work arrangement in which employees report to their workplace on some days of the month while working from home on others.

Remote working has raised the possibility of employees moonlighting since it becomes more difficult for firms to track their productivity and locations while working remotely. However, many employees are unaware of the consequences of moonlighting, and its ambiguous ethicality also contributes to its recent development.

HRMS Effect on Moonlighting

Many companies connect human resource management and information technology using human resource management system (HRMS) software. With the help of HRMS software in India, HR can focus on the company’s relationship with its employers. Implementing a solid HRMS significantly impacts employee engagement and retention. Because of these features of HRMS, it also helps to prevent employee moonlighting to some extent. The following are the main variables that contribute to it:

● Communication

A solid HRMS system improves overall corporate communication by reducing administrative HR operations and increasing organizational transparency through greater communication. Furthermore, many modern HRMS software in India allows employees to download documents such as offer letters, non-disclosure agreements, etc.

The HRMS also allows them to download business policies as needed. These choices will enable employees to better understand corporate policies without contacting their HR department. Furthermore, because most organizations have anti-moonlighting clauses and appropriate non-compete agreements, employees will be discouraged from accepting a job from another employer.

● Engagement

Employees will be more involved with their companies if they can access interactive HRMS. Modern HRMS software in India also offers interactive ways for employees to communicate with their organizations. Web-based ESS portals, geofencing-based attendance, intelligent chatbots, simpler requests, timely updates and notifications are just a few tools firms may use to keep their employees engaged.

For example, getting leave from work directly from their cell phones provides employees with a more convenient alternative than emailing their supervisor and waiting for a response. Similarly, biometric attendance, such as selfie attendance and fingerprint scanning, ensures accurate and failsafe attendance data from employees’ devices. An employer can ensure that their employees feel connected to their firm and simplify their lives with HRMS. It gives them a purpose, which may be reinforced by providing them with the necessary tools, such as an ESS portal.

● Hybrid Working

Employers are concerned that with flexible work alternatives, their employees may begin moonlighting. However, their chances become minimal if they remain involved with their existing organization. As a result, businesses should offer remote or hybrid work options and assist their employees in maintaining a healthy work-life balance. You can use your HRMS to conduct staff surveys to learn about popular attitudes toward remote work and implement regulations based on their preferences to maximize participation. In addition, strong HRMS roster management tools assist HR with quick employee shift allocation and efficient weekday management.

An HRMS software in India can assign assignments to specific employees to ensure they feel accountable for their responsibilities. Even if they are working remotely, having a visual aid allows them to focus on the task. It also enables management to comprehend and value their employees’ efforts. These possibilities increase employees’ productivity and engagement with their primary organization, reducing the need for moonlighting.

● Performance Evaluation

Modern HRMS systems also include timesheets and remote employee monitoring capabilities to guarantee you get the most out of your investment. You can use these tools to track and measure your employees’ productivity and monitor their everyday activities. It also gives them more insights into their productivity and assists them in taking the appropriate actions.

Remote monitoring tools are typically included with HRMS software in India, work in tandem with performance management software to successfully measure employee performance. You may also create custom reports with the characteristics you need and obtain actionable insights to help optimize and streamline your staff for optimal productivity. It will also assist in identifying slackers and determining whether someone is moonlighting, such as decreasing productivity, taking more leaves than usual, and so on.

● Growth Mindset

Businesses should likewise have a growth mindset when it comes to their staff. They should provide adequate opportunities for professional development to their staff. It will drive them to stay longer with their organization since they will see the benefit of staying with a company that cares about their employees’ development. In addition, it will strengthen their trust in their employer and help them avoid moonlighting.

Companies that provide additional possibilities for training and development with the help of HRMS software in India are also expanding the skill set of their personnel, which will benefit both the workers and the firm. Moreover, a better workforce will result in better products and services, so investing in your employees will benefit you in the long run.


Given the recent increase in employee moonlighting, it is clear that now is the time to deploy an HRMS. As we’ve seen throughout this blog, implementing a solid HRMS helps employers and employees do their jobs efficiently.

Furthermore, it is a wonderful tool for increasing employee engagement, ensuring that they remain loyal to your firm for a longer time. On the other hand, with HRMS software in India, you can monitor your employees’ activities, empower them, and develop reports to guarantee that no one is moonlighting.


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