Learning culture fosters business success, per this Houston expert

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Building a strong learning culture and refining your strategies now will strengthen your current employees’ engagement and attract top-notch talent in the future. Photo via Getty Images

Employee training is often seen as synonymous with learning and development, but there are significant differences. Understanding the differences can help elevate your organization’s programs and foster a learning culture.

Training teaches employees to perform the core duties of their role, typically competency and task/skills-based learning. Training is usually leveraged when the goal is to elevate an employee’s performance in their current role.

Learning and development (L&D) programs give employees the resources to grow within their current role and ready them for their possible advancement into new positions and/or another role or function. This development should be a collaborative effort with the employee to support the employee’s growth goals. L&D programs build and strengthen your organization’s learning culture, which encourages employees to lean into the overall corporate culture and promotes employee engagement.

There are major benefits when developing L&D programs that impact business success, including:

Employee retention

Employee turnover occurs in every organization, regardless of the work culture. As we continue to maneuver a tight labor market, it is important to consider how each business initiative impacts employee retention. Leadership should not focus on L&D potentially preparing employees for their next position outside the organization. According to LinkedIn’s 2024 Workplace Learning Report, organizations with a strong learning culture saw a 57 percent boost in employee retention. It is much better to invest in and retain your current employees today to drive business success, rather than be forced to invest in constant hiring and onboarding initiatives. Investing in L&D shows your workforce that you value them and care about their future within the company. L&D is a sound investment in your most valuable resource, your people.

Upskilling and reskilling

Today’s labor market has brought increased attention to the value of upskilling and reskilling, with upskilling reducing the skill gaps and preparing employees to advance within your organization, while reskilling teaches employees how to perform an entirely new set of skills. Insperity’s 2024 Business Outlook Report surveyed small- and medium-sized businesses, finding that almost 75 percent either had or planned to introduce an upskilling strategy.

A learning culture is the foundation for upskilling and reskilling within your organization and creates agility in the talent within your business. Upskilling and reskilling opportunities can be individually customized to meet your employees’ career goals, skill sets and the needs of the organization. When members of your workforce experience upskilling and reskilling, others within the organization may be motivated to grow within the organization as well.

Employer branding

Information travels about your organization, whether good or bad. When there are ample L&D opportunities, it improves your employer brand and helps attract top talent who are looking for growth opportunities. A learning culture is a competitive advantage when competing for talent. When the competition does not invest in L&D, your business will stand out more to their employees and prospective candidates as an opportunity for growth and development.

Leveraging your L&D programs and knowing the opportunities available are important for recruiting success. Highlighting upskilling and advancement opportunities are especially important as many employees who choose to work with startups and small businesses want to have a hand in the company’s growth and success. It is also important to discuss how your organizational culture supports learning on the job.

Building a strong learning culture and refining your strategies now will strengthen your current employees’ engagement and attract top-notch talent in the future. Success in business always begins with a focus on your people.

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Karen Leal is performance specialist with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.

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In his new book, Houstonian Brad Deutser explores how increasingly important a sense of belonging is in the workplace. Photo via Getty Images

Houston innovator explores importance of belonging within the modern workforce

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Even in a highly digital, globalized world, the essence of business remains the same: a vibrant tapestry of people working together towards a common goal.

Regardless of how fractured business focus can become, people are at the center of everything that brings business success. And people all share in our fundamental human need to belong to something greater than ourselves and to experience a sense of community, support, and affiliation with others.

The intricacies of human connection underpin our collective drive for unity and purpose, which becomes profoundly disrupted when an organization loses sight of prioritizing its employees. To prevent the Great Disconnect from further eroding our people and forestalling the perils of losing their best and brightest people, leaders must cultivate a deep understanding of, and commitment to, fostering organizational belonging.

The recent groundbreaking study by the team behind Deutser's Institute for Belonging, incorporating the perspectives of nearly 15,000 employees, crystallizes this sentiment. Our results overwhelmingly indicate that an employee's sense of belonging outstrips both their perception of organizational culture and their salary as key determinants of engagement, satisfaction, and overall performance. Previously, employers believed the inverse to be true. This is a significant shift in the attitudes of the workforce.

Unless leaders devote considerable energy, time, and resources towards nurturing an organizational culture of belonging, they may risk depleting their most valuable asset: their people. This article delves into the intricate details of our research and the consequent implications for leadership, aiming to provide a blueprint for leaders to build an inclusive and empowering workspace.

In another of our studies with 275 employees, a staggering 90 percent affirmed the importance of experiencing a sense of belonging at work. Broadening our research to an expansive sample of 14,709 employees across diverse industries and roles, we found an undeniable correlation: individuals who experienced a sense of belonging exhibited significantly higher levels of engagement, job satisfaction, and effort. The most striking understanding about this work was that belonging predicts satisfaction, engagement, and commitment to the organization over and above employees’ views of the culture or strategy.

As leaders, we’ve seen a decades long placement of culture and strategy at the top — but it is belonging that really drives performance. Another adjunct study, employing an experimental design with 71 employees, validated that employees would willingly forego higher compensation and be more inclined to stay at an organization that nurtures their sense of belonging. In sum, organizations and leaders stand to gain substantially by investing in nurturing connections, empowerment, and unity among their teams.

In our survey research, conducted with a sample of 14,709 employees, we used a five-dimensional measure of organizational belonging, encapsulating:

  1. Acknowledgment and appreciation of individual opinions.
  2. Fostering a strong sense of team unity.
  3. Opportunities for professional growth within the company.
  4. Optimal alignment between job responsibilities and individual skill sets.
  5. Trust in leadership’s commitment to their welfare.

Although there are many definitions out there, we define belonging as where we hold space for something of shared importance. It is where we come together on values, purpose, and identity; a space of acceptance where agreement is not required but a shared framework is understood; where there is an invitation into the space; an intentional choice to take part in; something vital to a sense of connection, security, and acceptance.

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Brad Deutser is the founder and CEO of Deutser, a Houston-based consulting firm, and author of BELONGING RULES: Five Crucial Actions that Build Unity and Foster Performance. Isabel Bilotta is managing consultant and head of learning and innovation at Deutser's learning initiative.

Whether it's the “Great Resignation” or the “Great Reallocation,” here's what you need to know about the pandemic's lasting effects on the workforce. Photo via Getty Images

Houston expert: Here's how the pandemic affected the workforce

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The pandemic has altered many aspects of American life, but perhaps none as much as the way Americans work – or, if they work at all. One startling phenomenon resulting from the pandemic is a massive exodus of people leaving the workforce. On average, around 4 million employees quit their jobs each month in 2021, with resignations accelerating toward the end of last year and hitting a record 4.5 million in November.

These mass departures have created an imbalance in the labor market. As of December 2021, there were 10.9 million job openings in the United States, but only 6.3 million unemployed workers. This imbalance has contributed to the supply chain issues that have plagued many industries, as well as to some of the wage and price inflation we are seeing. Inflation has been rising while our labor force participation rate has plummeted to 61.9 percent, back to around where we were in the mid-1970s. In other words, only about 3 out of 5 working-age adults are actually working.

Embedded in the resignation data are really two types of people: those who are leaving the workforce permanently, and those who are leaving their current jobs for better, or more flexible, work. If the former group refers to a trend dubbed the “Great Resignation,” the latter is more aptly described as the “Great Reallocation.” Although fundamentally different, both trends tell us something important about the ways in which American work life has changed in the wake of the pandemic.

Workers permanently leaving the workforce may be doing so for a variety of reasons. Pre-pandemic, America was already in the Baby Boomer retirement cycle. So, for many people who might have been a year or two away from retirement before the pandemic, the fear and uncertainty resulting from COVID-19 simply delayed those plans. But with 2021’s stock market gains, and retirement accounts flush with cash, many people felt secure enough to pursue the retirement they put off during 2020’s uncertainty.

Another subset of people leaving the workforce likely did so out of a legitimate fear of COVID-19 or, on the flip side, because of burgeoning vaccine mandates. As Americans learn to live with COVID-19, and with many vaccine mandates being struck down or withdrawn, some of these workers will return to the workforce, while others will opt for retirement to avoid these issues. Additionally, with the advent of virtual school across much of the United States, many parents felt pressure to either quit working and stay home with their kids or quit an in-person job to find a work-from-home job.

Still another subset of workers—primarily those in lower-wage jobs—chose to stay home because government subsidies stemming from the pandemic equaled or, in some cases, exceeded their expected earnings from work. Since those subsidies largely ended, many of these workers have been looking to reenter the workforce. However, with the rise of artificial intelligence algorithms pruning resumes for “fit” with certain jobs, a significant employment gap on a worker’s resume could create problems for many who are now seeking work. In any event, many workers looking to get back in the game could benefit from having an expert optimize their resumes so they are attractive to the gatekeeper’s new electronic eye.

Another group of workers resigned to start their own businesses. From January to November 2021, nearly 5 million new businesses were created in the United States. This represents a 55 percent increase over the same period in 2019, which was a boom year right before the pandemic.

The workforce gap stemming from the “Great Resignation” has substantially increased employee bargaining power. In an effort to bridge that gap, employers have been engaged in a war for talent that will continue or, absent a market disruption, even intensify in 2022. In this tight labor market, employers have been realizing that there is a competitive advantage to recruiting talent away from competitors. Wages are up, with no downturn in sight. In November of 2021 alone, pay was up 3.2 percent for employees remaining in their existing jobs. But, for those employees who switched jobs, pay increased 4.3 percent, revealing an advantage to employees looking to “upgrade” their positions. To attract employees, employers are not only offering higher wages, but also, other enticements like signing bonuses, retention bonuses, private offices, and hybrid or fully remote working arrangements.

The pandemic also changed employees’ perspective on work. People became introspective and reevaluated their wants and needs. With so many forced to work from home at the onset of the pandemic, and the overall success of working from home, the flexibility that accompanies working from home has now become ingrained in people’s psyches. Many now prefer or demand jobs with greater flexibility. The success of the work from home phenomenon has also caused several employers to embrace nationwide recruiting of remote workers. These employers greatly benefit from mining a nationwide talent pool and their employees love being able to live where they want, work from home, and still receive great pay. Now, if you want to live in a cabin in Montana or a beach house in Florida, you can do that and still get Silicon Valley pay.

Given the pandemic-driven new market realities, a few things have become clear. First, work from home, to a greater or lesser extent, is here to stay. Second, whether employees work from home or at a business, if we hope to solve supply chain problems, get products back on shelves, and stem the tide of inflation, we need to get Americans back in the workforce. Third, for those considering going back to work, there is no better time than now.

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Scott Nelson is a Houston-based partner at Hunton Andrews Kurth focused on labor and employment.

Maintaining employee engagement can be tough this time of year even pre-pandemic. Here are some tips and considerations from a local expert. Photo via Getty Images

Houston expert: How to keep your employees engaged during the holidays

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When you combine standard holiday distractions with a year of prolonged and intensified stress, it can result in an exhausted team and real employee engagement (and productivity) problems for your business.

So, what can you do to minimize the impact of this year's holiday slump? It starts with understanding why employees tend to disengage during the holidays.

Reasons your employees are less engaged around the holidays

While employee engagement is something to be focused on throughout the year, the holiday season can be a particularly challenging time. Pre-pandemic, common distractions included holiday parties, upcoming travel plans, and the pressure to find the perfect gift.

This year, travel and large holiday gatherings will likely take a back seat to burnout, pressure to keep family safe, and a different kind of shopping stress (like factoring in delivery times), which could pull employees away from work commitments.

Plus, the business gets busier. While not every business is seasonal, the end of the year tends to be a busier time for many companies, especially for those whose fiscal year matches the calendar. For these companies, the arrival of the holiday season can be an abrupt reminder that they only have a few days left to accomplish the year's goals, meet their annual quotas, or close out requests they've been meaning to get to throughout the year.

We also have the arrival of flu season. When you combine cold and flu season with a very contagious coronavirus, you can be looking at sidelining even the most dedicated employee for days or even weeks. And, unlike vacations, employers have a much harder time planning for illness.

There's also the end of the school session. Working parents are looking forward to spending quality time with their family, and prior to time off from work, they may still need to make childcare arrangements during the workday, the cost of which can be burdensome at the holidays.

Ideas for boosting employee engagement around the holidays

Even though the holidays can compound workplace stress, there are effective strategies you can put in place to minimize the impact of any holiday-related slumps:

Plan ahead. The single most important thing employers can do to prepare for the holiday season is to plan ahead. If you haven't already, make sure you have all PTO requests in. Forecasting for a lighter staff or arranging additional coverage and adjusting timelines for projects during the holidays can help you meet year-end objectives without intensifying the strain on your already stressed team.

Be flexible and understanding. It's important to try to be as accommodating as you can (within reason). Between potential illnesses, family responsibilities, and added financial burdens, employees will appreciate a little more flexibility and understanding during the holidays. Allowing employees to adjust their schedules or even work overtime to complete projects can build morale and have a positive impact on your bottom line. If you can't accommodate employees' requests, communicate early, and keep an open dialogue to help them understand why. Loyal employees want the company to succeed as much as you do.

Encourage employees to stay healthy. We've all come to understand that more than ever this year. Keeping any wellness programs in place (online or otherwise) can make a big difference. To help keep your staff healthy, happy, and productive during the holidays, you can:

  • Host a flu-shot clinic or encourage employees to get one from their healthcare provider
  • Provide general tips and education about the importance of getting enough rest
  • Make sure common areas are cleaned thoroughly for those present in workplace facilities

Embrace the holiday spirit. While it may not be appropriate for every employer to focus on a specific holiday tradition, ignoring the holiday season isn't going to improve engagement. In fact, a little holiday cheer is exactly what most of us need this year. Even if your team is fully remote you can host intentional, inclusive activities to help employees decompress and encourage camaraderie and collaboration.

Show appreciation for your employees. A little extra employee appreciation or recognition is always needed and welcomed. Your team has worked through some very difficult times in 2020. Celebrate their successes with (if possible) an end-of-year bonus, a complimentary meal, a meaningful gift, or simply a kind email or handwritten note. The holiday season is a great opportunity to show your appreciation for all of your team's hard work. It can be a much-needed reset for what we all hope is a much-improved 2021.

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Susan Crowder, senior HR adviser at Houston-based G&A Partners.

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Houston e-commerce platform expands logistics network with acquisition of fulfillment operations arm

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A Houston e-commerce unicorn has made its latest strategic acquisition.

Cart.com, which operates a multichannel commerce platform, announced that it has acquired Guthy-Renker's wholly-owned fulfillment operations arm OceanX. The terms of the deal were not disclosed. Around 200 OceanX employees will be assumed onto the Cart.com team, and the fast-growing company will add two new facilities totaling over 600,000 square feet to its network, expanding to include a West Coast distribution hub in Southern California and its third facility near Columbus, Ohio.

"Acquiring OceanX is part of Cart.com’s strategy to continue to scale our platform and capabilities across industries, leveraging our proprietary technology to improve efficiency and deliver superior results to our clients and their customers,” Omair Tariq, Cart.com founder and CEO, says in a news release. “By deploying our Constellation OMS and WMS software and seasoned operations team across these two new facilities, we will improve order visibility, labor efficiency, shipping costs and customer satisfaction for the benefit of our new clients.”

Cart.com now has 17 omnichannel fulfillment and distribution centers with around 10 million square feet and more than 1,600 team members, according to the company.

With the transition, Guthy-Renker's Co-Founder and Co-Chairman Bill Guthy will serve as a strategic adviser to Cart.com.

The move broadens Cart.com's presence in the high-volume beauty, wellness, and lifestyle industries, and the company now will work with supply chains from numerous brands, including Meaningful Beauty, The Body Firm, Smileactives, and Westmore Beauty.

“Cart.com has built a comprehensive, enterprise-grade logistics network with modern, digital capabilities that offer unparalleled visibility, control and efficiency for our brands,” Rick Odum, CEO of Guthy-Renker, says in the release. “This partnership will marry our own channel and marketing expertise with their track record of driving growth and savings for high-volume, high-SKU brands, supercharging performance across our portfolio.”

Earlier this year Cart.com secured $105 million in debt refinancing from investment manager BlackRock and a $25 million series C extension round.

In April, the company acquired an Amazon partner, Ohio-based Amify, a company that provides optimization and advertising solutions

10 years in: Houston entrepreneur reflects on lessons learned

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Just as the job market is soaring, so is the state of entrepreneurship in America. And increasingly, people are launching their businesses in Houston.

As InnovationMap reported, our city is a top startup ecosystem, now ranked among the top 50 in the world. One of the fastest-growing sectors is climate tech. According to a recent analysis, the global climate tech market is expected to reach a massive $162 billion by 2033.

All those big numbers boil down to individual, hardworking people with high hopes, big dreams, and a willingness to take risks. Maybe that includes you.

This month, my company reached a milestone. We’ve been around for a decade, which means we’ve beaten the odds. An estimated two-thirds of businesses fail within 10 years. This has been nothing short of a chaotic, exhilarating, and sometimes unforgiving journey. I've been blessed and cursed, from hurricanes to a pandemic, losing my vision to filming documentaries, serving in the US Department of Energy during two administrations to an epic ringing of the closing bell on Wall Street. The successes have been sweet, but the lessons learned are the real treasure.

Here are my five biggest takeaways from a decade in the trenches of entrepreneurship.

Master your market

A deep understanding of the market is crucial to achieve success. By delving into the intricacies of how it operates, identifying gaps you can fill, and engaging with individuals and companies eager to see those gaps addressed, you lay the foundation for a viable and impactful venture. Building credibility and establishing a network over the long term opens doors. I experienced this firsthand in the oil and gas, where my market knowledge and 15 years of experience allowed me to create a business that champions the energy workforce of the future.

However, markets are constantly evolving, and even more so today than ever. It’s hard to bring things to market, so master the market, and listen to the voice of the customer to stay ahead.

Takeaway:

Embrace the power of market mastery and credibility to pave the path to success.

Grit is everything

When I think of resilience, one image stands out—the "man in the arena." (Or I should say the woman!). It's a metaphor often cited, and for good reason. What are you even doing if you're not stepping into the ring, getting your hands dirty, and taking the punches? Grit is what keeps you moving when the odds are against you. Change is inevitable; challenges will come. But grit? That’s what pushes you to stand back up and keep going. If you’re an entrepreneur, there’s no room for half-hearted effort. You're either in the ring or watching from the sidelines.

Takeaway:

The ability to endure setbacks and adapt separates those who thrive from those who fold.

You need more than you think

A hard truth I’ve learned the painful way. When I first started Pink Petro, a mentor of mine and now very successful entrepreneur turned investor told me to “Don’t take capital until you need it.” His advice helped me keep a large percentage of ownership in my company, however I learned that you will always need more time, money, and resources than anticipated. As a solo founder, it is easy to underestimate the financial and emotional cost of building something from scratch, alone. Whether it’s product development, marketing, an acquisition or hiring top talent, it all takes capital.

Takeaway:

Plan. Then, double that plan. Odds are, you’ll need it.

Ask without fear

Whether seeking investment, resources or support, learning to ask for what you need is a game-changer. This one didn’t come naturally to me—I had to lean in and push past the stubbornness of “never needing anyone’s help”. Here’s the truth: most people are afraid to ask. But asking is often what gets you one step closer to your goals. Whether it’s a pitch to an investor or a favor from a mentor, the worst someone can say is “no.” And in business, a "no" is just a chance to refine your pitch for the next opportunity.

Takeaway:

Advocating for your needs isn’t selfish—it’s essential.

The sharks are in the water

Building something meaningful attracts all kinds of attention. Over the years, I’ve dealt with doubters, copycats, and even former allies. At first, it stung. But then I realized something important -- sharks will always show up if you’re making waves. It’s a sign you’re on the right path. The key is to stay focused on your vision and not get distracted

by the noise.

Takeaway:

If you have skeptics and imitators, take it as validation that what you’re doing matters.

Bonus lesson: Put your mask on

This one is personal. Here’s the thing—if you’re running on empty, you’re no good to your business, team, or yourself. That’s when I learned the importance of self-care. It’s not selfish—it’s survival.

Takeaway:

Take care of yourself first. Your business depends on it.

Looking back, ten years feels like a lifetime. The truth is that entrepreneurship is hard. It requires grit, humility, persistence, and the courage to rise above challenges. But it’s also one of the most rewarding ventures you can take on.

If you’re out there building something, keep going. Step into the ring. Learn from every fall. Trust yourself, and never stop moving forward—you might surprise yourself with how far you can go.

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Katie Mehnert is founder and CEO of ALLY Energy, formerly Pink Petro and serves on the National Petroleum Council.

Here are the most-read energy tech stories of the year

year in review

Editor's note: As the year comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. As the energy capital of the world, Houston has its fair share of energy tech stories that trended among readers. Be sure to click through to read the full story.

Houston accelerator names inaugural cohort to propel digital transformation in energy

The NOV Supernova Accelerator will work to cultivate relationships between startups and NOV. Photo via Getty Images

Houston-based Venture Builder VC has kicked off its NOV Supernova Accelerator and named its inaugural cohort.

The program, originally announced earlier this year, focuses on accelerating digital transformation solutions for NOV Inc.'s operations in the upstream oil and gas industry. It will support high-potential startups in driving digital transformation within the energy sector, specifically upstream oil and gas, and last five months and culminate in a demo day where founders will present solutions to industry leaders, potential investors, NOV executives, and other stakeholders.

The NOV Supernova Accelerator will work to cultivate relationships between startups and NOV. They will offer specific companies access to NOV’s corporate R&D teams and business units to test their solutions in an effort to potentially develop long-term partnerships. Read more.

Promising Houston startup expands energy efficiency product to Middle East, Singapore

NanoTech is targeting new overseas markets for its energy efficiency products. Photo via Getty Images

NanoTech Materials has announced a big expansion for its business.

The Houston company, which created a roof coating using nanotechnology that optimizes energy efficiency, has partnered with Terminal Subsea Solutions Marine Service SP to bring its products to the Gulf Cooperation Council and Singapore. TSSM will become a partner of Houston’s NanoTech Materials products, which will include the Cool Roof Coat, Vehicular Coat, and Insulative Coat for the GCC countries and Singapore.

NanoTech Materials technology that ranges from roof coatings on mid- to low-rise buildings to shipping container insulation to coating trucks and transportation vehicles will be utilized by TSSM in the partnership. NanoTech’s efforts are focused on heat mitigation that can reduce energy costs, enhance worker safety, and minimize business risks in the process. Read more.

Rice University launches $12.5M climate tech accelerator

Rice University announced a new climate tech initiative backed by Woodside Energy. Photo by Natalie Harms/InnovationMap

Rice University has announced its latest initiative to advance clean energy technology into commercialization with a new partnership with a global energy company.

Woodside Energy, headquartered in Australia with its global operations in Houston following its 2022 acquisition of BHP Group, has committed $12.5 million over the next five years to create the Woodside Rice Decarbonization Accelerator.

"The goal of the accelerator is to fast track the commercialization of innovative decarbonization technologies created in Rice labs," Rice University President Reginald DesRoches says to a crowd at the Ion at the initiative's announcement. "These technologies have the potential to make better batteries, transitistors, and other critical materials for energy technologies. In addition, the accelerator will work on manufacturing these high-value products from captured and converted carbon dioxide and methane." Read more.

10 most-promising energy tech startups named at annual Houston event

Over 500 people attended the 21st annual Energy Tech Venture Forum hosted by the Rice Alliance. Photo courtesy of Rice

Investors from around the world again identified the most-promising energy tech startups at the Rice Alliance for Technology and Entrepreneurship's annual event.

"The recognition that Houston is the epicenter of energy transition is growing. It's something we are championing as much as possible so that the world can know exactly what we're doing," Paul Cherukuri, chief innovation officer at Rice University says at the 21st annual Energy Tech Venture Forum.

The event took place during the inaugural Houston Energy and Climate Startup Week, and nearly 100 startups from 23 states and seven countries pitched investors Wednesday, September 11, and Thursday, September 12. At the conclusion of the event, the investors decided on 10 companies deemed "most promising" from the presentations. Read more.

Port Houston lands $3M EPA grant to drive green initiatives, cleantech innovation

The grant, funded by the federal Inflation Reduction Act, will help promote cleaner air, reduced emissions, and green jobs. Photo via Getty Images

Port Houston’s PORT SHIFT program is receiving nearly $3 million from the U.S. Environmental Protection Agency’s Clean Ports Program.

The grant, funded by the federal Inflation Reduction Act, will help promote cleaner air, reduced emissions, and green jobs.

“With its ambitious PORT SHIFT program, Houston is taking a bold step toward a cleaner, more sustainable future, and I’m proud to have helped make this possible by voting for the Inflation Reduction Act,” U.S. Rep. Sylvia Garcia says in a news release. Read more.

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