Got a thriving side hustle? Here's how and when to tell your boss about it — and why you probably should.

• Nearly 60% of adult US workers are likely to take on a second job next year. 
• Side gigs can be a source of ancillary income, but they can also take up a lot of time and energy.
• Experts say it's important to tell your boss about your side hustle. Here are some tips.

You've started a side hustle. (Congrats!) And it's going pretty well. (Go you!) It's probably time to tell your boss about it. (Wait, what?)

Talking to your manager about your new venture might sound daunting, but experts say that it's important information to disclose. For starters, there are legal implications: You want to make clear that your side hustle is within the bounds of your company's policies on outside employment. While most employers don't ban side hustles, they often restrict the type of work you're able to do so that it doesn't pose a competitive issue or conflict of interest. 

As of December 2022, 44% of Americans have a side-hustle, according to a report by online financial platform Lending Tree Inc., and Gen Zers, millennials, and parents with young kids are leading the charge. The report also notes that 68% of side hustlers say combating inflation is the primary reason for their venture. Additionally, the risk of a possible recession and continued layoffs across prominent industries could continue driving entrepreneurial folks toward an outlet for ancillary income. The rise in prevalence and importance of side hustles makes the question of when and how to address a side gig with managers increasingly pressing. 

From a professional point of view, being transparent with your boss helps build trust. Besides, you wouldn't want your manager to find out about your side hustle from Instagram, especially if you're using the platform for marketing, said Susie Moore, a business coach and the author of "What If It Does Work Out?: How a Side Hustle Can Change Your Life." 

"It's important to be upfront and honest," Moore said. "You're not hiding anything, and a side hustle is a worthy endeavor that shows you have initiative."

Insider spoke with three experts, including an entrepreneur who took her side hustle full time, who shared their advice and tips on how to have a productive conversation with your manager.

Steel your nerves

Research by Jennifer Nahrgang, a professor at the University of Iowa's Tippie College of Business, found that employees fear disclosing their side hustles to their bosses for a number of reasons. Some didn't want their managers to think they didn't have enough to do at work. Others were concerned about being judged for having a side hustle for financial reasons. 

One of their biggest concerns, though, has to do with the so-called ideal-worker norm, she said. "There's this notion that ideal employees are devoted to their jobs and available 24/7," she said. "Some worry that having a side hustle may signal lack of commitment."

In a survey of 50 managers, Nahrgang found that about 35% of managers were supportive of their employees' side hustles; 30% were unbothered as long as the side hustle didn't interfere with their jobs; and 20% thought it wasn't their business. But a minority of managers were worried about employee burnout or concerned that their employees' side hustles would take time away from the organization. 

Knowing these potential reservations can help you decide how best to broach the subject, she said. 

Be transparent — to a point  

If you're still in the ideation phase of entrepreneurship, Moore, the business coach, recommended keeping mum until you're sure you're going to pursue it. "You don't want to have a conversation with your boss about something you're feeling out if it's going to fizzle in a couple of months."

But if your side hustle is already a thriving business, you should mention it right away, she said. 

When it comes to figuring out what to say, don't divulge more than you need to. Moore suggested saying something like, "There's this exciting thing that I do on evenings and weekends, and I find that I'm learning new skills that I use in my day job."

Don't be apologetic or act as though you're asking for permission, but there's also no need to be overly fawning. Don't say, for instance, that your side gig is your life's passion, and that you can't wait to do it full time.

Chase Coleman, a full-time employee at Amazon and content creator, already had a side hustle before landing his job at the teach firm. Coleman, who runs a social media platform designed to help young professionals in their corporate careers, said he addressed the topic from the first interview. 

"The reason I bring it up is because I would rather get out ahead of it than them find it and then I feel like I'm getting fired because of it," he said.

His managers did not care one way or another if he had a side gig as long as it wasn't impacting his work and that it didn't reflect the company poorly, Coleman said.

Talk about the benefits of your side hustle

Even bosses who greenlight side hustles want your full attention during work hours. "The minute you make a mistake or your performance slips, your boss might think you're not focused," Nahrgang said. 

That's why it's critical to maintain a strong level of performance. Keep hitting your deadlines and meeting your goals. If you have a good relationship with your boss, consider having a frank conversation about how your full-time work benefits from the side hustle. 

"Talk about what you're learning and highlight how it gives you a creative outlet that helps you be more energized and more satisfied with life and work," she said.

That's how Lissette Calveiro positioned her side gig to her manager in 2013. Calveiro is the founder of The Marketable Millennial — a blog focused on careers, mentoring, and breaking down the barriers to social-media influencing. In telling her boss about her venture, she explained how it allowed her to develop new skills that benefited her then employer, a PR company.

The experience she gained building her brand on social media, fostering a community, and marketing herself helped her do the same with clients at her full-time job, she said. When Calveiro's social platforms started growing, other teams at her company asked her to help improve their own results. Being transparent about her thriving business allowed Calveiro to help the company while simultaneously building her own.

Set boundaries for your time and energy

Finally, it's important to set parameters on how you'll divide your time and energy — and to make sure that your boss knows how you're reinforcing those boundaries.

"I highly believe in not just time management, but energy management," Calveiro said. "The things that drain your energy, dedicate time to it," she said, adding that sometimes those tasks should be saved for the weekends so as to not sacrifice the energy you need for the workday.

"If I tried to do it in between lunch breaks, I would come back for my lunch break drained," she said. "You want to protect your employer's space, you want to protect your own side-hustle space, and the more you cannot intermingle them, the better."