TRIGGER WARNING!!! We train our staff to intentionally start a business on the side and offer coaching services. We can talk more on that if you want.
Regarding your question:
(1) Get feedback from them on why they want to start a business? Depending how honest they are, consider offering to help them get started on the right foot
(2) Reclarify terms of employment moving forward from this date (in writing with their signature).
(3a) Either do performance review and don't tolerate their jobs to interfere with their day job, OR, (3b) offer flexibility of his/her schedule to help accommodate their jobs without ruinning your schedule. *note, once they get reduced hours to do their own thing, you have to stay on top of performance and I recommend weekly GSR's to help them grow into managing their schedule better so it doesn't impact yours as much (they will most likely end up leaving within 30-60 days after). Don't keep them at all if they are toxic. This may be too little/too late.
Reasoning for Issue:
(1) Employee has cuase to disconnect and leave (devalued, wrong position, conflict, personal issues, lifestyle change, bad fit, etc.)
(2) Employee sees no future (personal financial stress bleeding into job, lack of clarity for career path, low ceiling, etc.)
*GSR meetings and clarity are huge for 360 deg. feedback. Exit interviews (not by direct supervisor) help too.
If you have given employees the tools and resources to succeed then they have no excuse other than to look in the mirror. Document performance reviews and get initials to validate termination with cause. Also make sure you have termination causes in employee agreement. More on the topic of HR too if needed....
-Brandon
