In a conversation with Gestión, Víctor Tenorio, senior division manager at Cornerstone, stated that, generally speaking, in hiring processes, the fact that an applicant has a side business is not a negative factor. However, this will depend on the nature of the business, the open position, and the company.

“Having a startup is neither viewed positively nor negatively. It depends on many factors, such as the time it demands, the type of business, and how long the project has been running,” he said.

Recruitment Processes

During the various stages of a recruitment process, the activities candidates engage in during their free time may come to light. While there is no obligation to disclose them—such as in the case of side businesses—candidates should be prepared to address this topic.

“You shouldn’t hide the fact that you have a side business. The idea is to be very transparent and know how to explain how you would balance your work duties with your side business activities without affecting your performance,” Tenorio noted.

For her part, Silvia Rebaza, a labor lawyer and senior associate at PPU, stated that hiding a side business could be seen as dishonest, so she recommended being transparent with the information, especially if the open position is not subject to direct supervision or involves remote work.

“There may be some reluctance to hire people in that situation, especially in certain cases. For example, when it comes to positions not subject to immediate supervision and remote work,” she noted.

In some cases, having a side business could be a plus for the candidate, especially if it contributes to their professional development. “It could be considered as long as these are ventures or projects that have lasted a reasonable amount of time, if they were undertaken during a career gap, or if they were successfully carried out alongside another job,” said the spokesperson for Cornerstone.

Conflict of Interest

Companies will evaluate whether the candidate engages in activities outside of work hours that could represent a conflict of interest and potentially harm performance in the role or the organization.

“We assess whether the candidate’s business venture competes with the company they are applying to. For example, I couldn’t apply for a headhunter position if I provided human resources consulting in my spare time,” he explained.

The labor lawyer noted that another potential conflict arises from the handling of sensitive information at the company where the candidate is applying. If the candidate has access to confidential data, there is a risk that this information could be used to benefit their personal business.

On the other hand, in the case of remote work or flexible schedules, she noted that the company would consider the risk that the employee might devote part of their workday to their business, thereby neglecting their duties and reducing their productivity.

Contracts and Clauses

In some companies, in addition to the employment contract and internal regulations, there are exclusivity and non-compete clauses to prevent future conflicts. That is why Silvia Rebaza emphasized the importance of carefully reading this documentation before signing and joining the organization.

“When reading the contract, you can ask whether the clauses apply to side businesses. Some clauses state that you cannot engage in any other additional activities outside of working hours,” she explained.

This is to prevent employees from starting a business in the future without knowing whether or not it was permitted under the terms of their contract. She also noted that there are confidentiality agreements to prevent employees from using sensitive information for their business ventures, and warned that engaging in this practice could constitute a crime and result in legal action.

In a conversation with Gestión, Víctor Tenorio, senior division manager at Cornerstone, stated that, generally speaking, in the hiring process, the fact that an applicant has a business venture is not a negative factor.

However, this will depend on the nature of the business, the open position, and the company.

“Having a startup is neither viewed positively nor negatively. It depends on many factors, such as the time it demands, the type of business, and how long the project has been running,” he said.

Recruitment
Processes During the various stages of a recruitment process, the activities candidates engage in during their free time may come to light. While candidates are not required to provide detailed information about these activities—such as their startups—they should be prepared to address the topic. “You
shouldn’t hide the fact that you have a startup. The idea is to be very transparent and know how to explain how you would balance your work duties with your free-time activities without affecting your performance,” Tenorio noted.

For her part, Silvia Rebaza, a labor lawyer and senior associate at PPU, stated that hiding a business venture could be seen as dishonest, so she recommended being transparent with the information, especially if the open position is not subject to direct supervision or involves remote work.

“There may be some reluctance to hire people in that situation, especially in certain cases. For example, when it comes to positions not subject to immediate supervision and remote work,” she noted.

In some cases, having a side business could be a plus for the candidate, especially if it contributes to their professional development. “It could be considered as long as these are ventures or projects that have lasted a reasonable amount of time, if they were undertaken during a career break, or if they were successfully carried out alongside another job,” said the spokesperson for Cornerstone.