I think side projects are very important. It's funny, a lot people have a hard time distinguishing between free time and work, without realizing that for some of the best engineers out there, they are the same. Just because my laptop is open, doesn't mean I have to be working. In the evening, on the weekends, or whatever you consider your free time to be, YOU go to movies, go out for dinner, go to the gym, go skiing, etc. But, as someone who really likes to build things, the time I would be doing those things (yes, I do those as well), I'm writing code.

The key is to hire people you trust to make good decisions when it comes to side projects, and the amount of time they spend on them.

But also on the employers, have you created and maintained an environment that someone wants to work for?

One of the things I think about most often while hiring, because it is true for me is that, I would be half the developer I am without side projects. My college degree and job I had out of college taught me nothing but concepts and theory, and how to be micromanaged. I WANT to hire people that have side projects because it means they ENJOY what they do, they dont just do it because someone is paying them to.

I recently wrote about this myself: http://ryanabbott.com/side-projects-learning-experience-vs-d...