Moonlighting continues to haunt ad agencies; AI tools being roped in to keep a tab

As layoffs and shrinking job opportunities plague the advertising landscape, “moonlighting” continues to be a contentious issue. An increasing number of ad professionals are seeking secondary income streams to cushion against economic uncertainties, industry leaders say. 

“Moonlighting continues to be a pressing issue for ad agencies, driven by the growing accessibility of freelance work in digital and content marketing,” says Anil Solanki, Media Lead, DentsuX. 

While moonlighting — where employees take on external paid gigs while being full-time staff of a company — was high during the pandemic, it has come down over the years, mainly because companies have ensured employees are back in office for at least a few days a week, making it harder for them to moonlight now, says Prasanna Iyer, CEO of Rezilient Digital, said. 

However, it is flourishing in the creative, digital and content marketing agencies due to several factors, including where the nature of the job is different and the entry of AI has rebooted the ecosystem. 

“To stop moonlighting entirely is like trying to stop people from binge-watching Netflix on a work-from-home day - it’s tough. Whether it's designing a logo for a friend’s startup, ghostwriting for a brand, or consulting on the weekends, the temptation for side hustles is real,” says Rajni Daswani, Director - Digital Marketing, SoCheers. 

Daswani and Solanki shed light on the ad industry's ongoing struggle with the challenges of moonlighting. Many agency leaders acknowledge the issue but refrain from speaking openly about it, choosing not to stir the hornet’s nest.

WFH fuel Moonlighting

The moonlighting debate originated in India’s startup and IT sectors during the pandemic times. Wipro’s executive chairman Rishad Premji had called moonlighting “plain and simple cheating” in a tweet two years ago. He later revealed that he had fired more than 300 employees for moonlighting. Companies like IBM and TCS have publicly agreed with Premji’s stance.

Things haven’t changed much even now. There has been a surge in moonlighting cases by 270 percent among professionals from April 2023 to January 2024, says a Deloitte report, quoting a paper. 

Ad industry executives insist that things may not be different in the ad industry. “Ad employees—particularly creatives and digital—are well-known for taking on freelance projects secretly,” quips an agency official. 

In an industry often criticized for low pay grades and insufficient increments—especially at entry levels—it’s not surprising that moonlighting is prevalent. 

The rise of hybrid and remote work has further facilitated freelancing, allowing employees to take on side projects more discreetly, industry insiders say. 

Tracking tools

According to EY, which has developed a tool to identify moonlighting using public source databases and social media analytics, “The only way to address this issue is by leveraging technology.”

EY suggests that “a sophisticated blend of workforce analytics tools and a comprehensive anti-moonlighting framework” can address the issue. “Companies must ensure that there is periodic and real time collection and assessment of crucial data points like – idle time, machine active time, significant time being spent on website etc. with the use of workforce analytics. Something as simple as tracking work from home requests, change in shift timings, mandatory training, and learnings, should be monitored,” Arpinder Singh, EY Global Markets and India Leader, Forensic & Integrity Services, wrote in a paper published 2022. 

These tools have gone more sophisticated over the years, particularly after the entry of the AI. Big ad agencies have now adopted AI tools to monitor employee activities more closely and tackle potential conflicts of interest and productivity dips. 

Solanki shares, “While some agencies have adopted strict contractual clauses and non-compete agreements, others are leveraging technology—such as tracking tools, VPN monitoring, and productivity software—to detect dual employment.”

Among the technologies being deployed are application-tracking tools that monitor whether employees are using job-relevant applications. These systems can flag irregular behavior, such as excessive time spent on non-work-related platforms. 

“Additionally, we have implemented tools that take random screenshots or screen grabs throughout the workday. These images offer insights into employee activity and can serve as deterrents to unauthorized freelancing during company hours,” the HR head of an agency said. 

New approach needed

Moonlighting has a direct impact on the effectiveness of an organization’s controls, policies, and frameworks. Rather than addressing issues reactively, organizations must shift towards a more proactive approach. Forensic professionals can play a crucial role in this transformation by helping identify risks in real time—rather than merely conducting post-mortem analyses, according to Singh. 

While such measures may provide employers with a greater sense of control, these also raise questions about employee trust, autonomy and privacy, many young agency personnel said. “Striking the right balance between accountability and privacy will be crucial for agencies navigating this evolving work landscape,” shared a creative leader. 

Some agencies are having a softer approach to the issue considering the changing times and rising aspirations of younger staff. “Some agencies allow passion projects as long as they don’t conflict with clients, while others explicitly prohibit any outside work. Transparency is key. Agencies are also focusing on fair pay and better work-life balance to reduce the temptation”, Daswani shares. 

According to Solanki, the real solution lies in fostering an engaging work environment, fair compensation, and clear growth paths, not surveillance. 

“When employees feel valued and challenged, the temptation to moonlight reduces significantly,” he noted.