By implementing best practices in salary negotiations, employees can secure a salary increase that matches inflation, avoid the uncertainty of job-hopping and invest in the future at their current company. Photo via Getty Images

With the consumer price index rising 9.1 percent since last year, many Americans are evaluating new employment opportunities with better pay. However, employees would be wise to consider the risks of accepting a new position in the face of inflation and a possible recession, which could leave employers unable to sustain higher wages and generous benefits.

As a safer option in the longterm, employees may wish to ask for a raise from their current management, yet many do not know how to start the conversation. By understanding best practices for negotiations, employees can improve their chances of obtaining a pay raise without undermining relationships.

Understand the risks of job-hopping

Conventional wisdom suggests that job hopping can result in higher salary increases than an annual raise. During the pandemic, many employees took advantage of labor market shortages to secure new positions for higher pay. However, job hopping presents risks, particularly in an uncertain economic environment. Companies may institute “last in, first out” layoffs, leaving recent hires unemployed.

Even in strong economic conditions, job-hoppers face uncertain outcomes. When employees leave a company, they may leave behind teammates, mentors, client partnerships and friendships years in the making. These relationships can redevelop in a new organization, but employees may find themselves in an unfamiliar setting, facing unrealistic expectations or unexpected challenges that were not clear during the interview process.

Prepare ahead of time

Before approaching management with a request for a raise, employees should understand their own financial needs and how much additional compensation would improve their finances. If inflation has caused financial strain, employees should gather recent data on inflation, including the consumer price index, to share with management. The more information employees can offer about changing economic conditions, the more management will understand and accept their position.

Focus on the positive

Employees should begin a conversation about salary with praise for the organization and a reiteration of their commitment to the team. By beginning on a positive note, employees set the tone for a mutually productive conversation. Although employees may view salary negotiations as adversarial across the table, productive negotiations are a conversation with both employee and employer on the same team.

Likewise, while employees may worry about looking greedy, employees should not let that fear prevent them from opening the conversation. Employers also understand that employees work to meet their financial needs. While employers may face budget constraints or other considerations in salary allocation, strong management also recognizes the importance of nurturing growth among employees, both in compensation and job responsibilities.

Nonetheless, employees should focus the discussion on broader economic conditions like inflation, not on their personal budget items. By acknowledging the economic environment outside of the employer’s control, employees can then respectfully request their salary be adjusted for inflation.

Employees with a record of strong results can also gather data or performance reviews to demonstrate their contributions to the team beyond the expectations of their role. In doing so, employees can frame a salary increase as a celebratory recognition of the mutually successful partnership between employee and employer and an investment in the relationship.

Be flexible if negotiations stall

If employers decline to adjust an employee’s salary for inflation, employees should not give up on negotiating additional compensation or benefits. Rather than a pay raise, employees can ask for reimbursement for gas mileage or additional remote days to cut down on their commutes. If management declines a pay raise based on timing, employees can acknowledge that management may face budgetary constraints, remaining flexible but firm. For instance, a compromise may involve revisiting the discussion in three to six months.

As employees face record-breaking inflation, it remains critical to consider the risks of departing one role for another. By implementing best practices in salary negotiations, employees can secure a salary increase that matches inflation, avoid the uncertainty of job-hopping and invest in the future at their current company.

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Jill Chapman is a senior performance consultant with Insperity, a leading provider of human resources and business performance solutions.

Employee advocacy isn't just something for larger companies to worry about, says this Houston expert. Photo via Getty Images

3 ways Houston small businesses can focus on employee advocacy

guest column

As society continues to be more socially conscious, greater strides have been made to boost initiatives that improve the world from a culture and climate perspective. This heightened sense of moral awareness made a natural progression into the business world as employees, consumers and communities hold companies to higher standards and demand accountability in various areas of business operations.

Fueled by the pandemic and “Great Resignation,” the movement quickly swept across corporate America, taking many companies by storm and laying the foundation for a new era of employee engagement. As a result, one of the most important trends emerging in the post-pandemic workplace is employee advocacy in response to specific societal events or company policies and practices.

While employee advocacy initially impacted larger organizations, it has become a significant factor for smaller companies as they compete for talent and appeal to workers with strong belief systems. Below are three ways small businesses can focus on employee advocacy.

Address mission and core values

Small business owners should develop or refine a mission statement and list of core values that capture their vision for the company, embody their principles and connect the company’s efforts to a greater purpose in the world. A company’s beliefs and value systems are top of mind for younger generations that have expressed a strong desire to align themselves with like-minded companies.

A company’s mission and core values should set the stage for creating an environment that encourages mutual trust between the company and its people, enables a high level of employee engagement and facilitates effective team collaboration that leads to long-term success.

When small companies weave their mission and values into their DNA, impacting all aspects of the business – including recruiting, hiring, onboarding and training – they will grab the attention of potential candidates and build stronger relationships with existing employees.

Exhibit social responsibility

One way for small businesses to make an impact that appeals to employee advocacy is by creating initiatives that bolster corporate social responsibility (CSR). Employees want to associate themselves with companies that make a difference in the community, so it befits leaders to implement or expand CSR programs. While there are a variety of potential areas to focus on regarding CSR, small business owners should first identify the key areas that resonate with their business, employees and clients with endeavors such as volunteer opportunities, corporate donation programs and conservation efforts.

Display core values

It is always important for business owners to demonstrate company values through daily interactions, programs and activities, providing evidence that efforts to support employee advocacy are alive and well. Some examples include conducting ongoing diversity, equity and inclusion (DEI) training in the workplace to raise awareness and institute behavioral change, ensuring a diverse hiring panel and slate of candidates during recruiting efforts, offering paid time to volunteer in the community to make a difference in the lives of others, displaying care and empathy by taking the time to listen to employee needs and concerns, and creating a recognition program that rewards employees who model certain company values. Small businesses can also highlight DEI stances on websites and in recruiting materials to ensure potential hires are aware of their efforts to remain relevant and make a difference for everyone in the workforce.

When small business owners identify ways to focus on employee advocacy, they are not only sending a clear message to the workforce that they care about people’s needs and desires, but they are also boosting their reputation in the community as good neighbors.

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Jill Chapman is a senior performance consultant with Insperity, a leading provider of human resources and business performance solutions.

This week's roundup of Houston innovators includes Veronica Wu of First Bight Ventures, Kate Evinger of Pokatok, and Jill Chapman of Insperity. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from synthetic biology to sportstech — recently making headlines in Houston innovation.

Veronica Wu, founder of First Bight Ventures

Photo courtesy of First Bight Ventures

Veronica Wu saw the potential in Houston for a vibrant synthetic biology hub that can propel one of the most exciting field of technology into the future. So, she founded First Bight Ventures to invest in synthetic biology startups in hopes to attract them to Houston.

“We have a moment in time where we can make Houston the global epicenter of synthetic biology and the bio economy," Wu says to a group of stakeholders last week at First Bight's Rocketing into the Bioeconomy event. "Whether its energy, semiconductor, space exploration, or winning the World Series — Houstonians lead. It’s in our DNA. While others look to the stars, we launch people into space.”

At First Bight's event, Wu introduced the company's new team members. Click here to read more.

Kate Evinger, director of Pokatok Labs

Photo courtesy of gBETA

Pokatok Labs — a scale-up program for sportstech startups — is in between its first and second cohorts, and Director Kate Evinger joined the Houston Innovators Podcast to look back at the inaugural class and share what the team is looking for in applications.

"Our mission is to help be a partner with all the exciting things happening in Houston — from the startup entrepreneurship side to the things we're seeing in the sports community — to continue to elevate and uplift the voices here in addition to bringing folks in from all over the world to celebrate the human experience in sports and to continue driving innovation in this space," she says on the show.

Evinger shares more about Pokatok Labs and the potential she sees for Houston to continue evolving as a hub for sports innovation on the podcast. Click here to read more.

Jill Chapman, senior performance consultant with Insperity

Photo courtesy of Insperity

Workplace culture can make or break a company of any size — especially now in this labor market. Making your office environment a place employees feel like they can take paid time off and vacations is key to prevent burnout and turnover. Jill Chapman, senior performance consultant with Insperity, writes in a guest column her tips for fostering this type of environment.

"As small business owners continue to navigate the labor shortage, savvy leaders recognize the significance of retaining existing employees, so it behooves them to encourage PTO usage to foster a highly engaged and energized workforce," she writes. Click here to read more.

Here are four ways to look out for the women at your company. Photo via Getty Images

Houston expert: 4 ways to continue supporting women in the workplace

Guest column

Fresh from the nation celebrating Mother’s Day last weekend weekend, recognizing the valuable role women play in raising their families, it is also an appropriate time to reflect upon the struggles women continue to face in a post-pandemic workplace. Women are juggling remote/hybrid schedules along with schooling dilemmas and a decline in childcare options, expediting burnout and fueling the “Great Resignation,” which continues to be a concern as the number of quits in March reached a record high of 4.5 million.

According to a recent Deloitte report, Women @ Work 2022: A Global Outlook, over 50% of women plan to quit their jobs in the next two years due to burnout. In addition, 53% of women say their stress levels are higher than they were a year ago; 46% say they feel burned out; nearly half rated their mental health as poor or very poor; only 43% feel comfortable talking about mental health challenges in the workplace; and 47% rated work-life balance as poor or extremely poor.

These are alarming statistics, but the challenges are not insurmountable as employers work to attract and retain top talent. Below are four ways savvy leaders can support women and working parents in the workplace.

Promote work-life balance

With many employees feeling burned out and exhausted from an extended period of working longer hours and handling schooling/caregiving responsibilities, it is crucial for leaders to promote work-life balance to help alleviate further repercussions and restore equilibrium. While encouraging employees to use allotted paid time off (PTO) and paid volunteer hours are significant ways, there are smaller steps that can add up to big differences in achieving work-life balance. Leaders should encourage employees to step away from their screens by taking daily breaks, enjoying lunch hours, starting/ending the workday on time and refraining from after-hours emails. Leaders should also set an example by practicing what they preach to attain work-life balance. Finding opportunities to unplug via PTO, volunteering and brief amounts of time each day can help employees feel refreshed and focused when they do return to their screens. When employees have work-life balance, it can give them a new perspective and make their jobs feel more rewarding as they pursue their careers.

Support career growth

One of the most important ways to support employees is to offer professional development programs that support career growth and lead to advancement opportunities within the company. Leaders should work with employees to define a career path that supports their career goals and aspirations and identify the best tools/resources required to accomplish their objectives. Professional development programs should offer a variety of resources that align with individual/business objectives, such as on-the-job training, supervisory instruction, formal mentoring programs, instructor-led courses, online learning and conferences to help employees learn in a well-rounded manner that supports varying learning styles. In addition, employers can further demonstrate their support for the growth and educational needs of employees by offering tuition reimbursement programs. When employees have a chance to expand their skill sets and continue to learn/grow, they are more engaged and connected to the company and less likely to seek opportunities elsewhere.

Boost well-being efforts

As employee mental health/wellness has moved to the forefront at many companies, leaders are boosting their efforts to improve, expand or change aspects of their employee well-being programs to address the needs and expectations of the workforce. While generous PTO programs, paid volunteer time, EAPs, mindfulness programs and meditation apps are a solid start, companies should go further by taking a more holistic approach to well-being by weaving it into the company’s DNA. Well-being should be a consideration in all aspects of business operations – from branding and productivity to performance and purpose – facilitating endless opportunities to view the business through a health and wellness lens. In addition, employers that realize many factors influence employees’ lives and their overall health, such as purpose/career, social, financial, physical, community and mental/emotional are displaying their commitment to employee wellness and positioning their companies for long-term success.

Offer relevant perks

The stress related to financial concerns can lead to employee burnout and mental health issues, so leaders should identify ways to help ease some of the monetary burden. Although some expenses may decrease in a remote/hybrid work environment, others might increase in areas such as home/office equipment purchases, office supplies, higher utility bills and child/elder care expenses, causing additional employee stress. When employers offer relevant perks to offset some of these costs, including company-sponsored discounts, gift cards for office supply companies, partial reimbursement for internet service, assistance with child/elder care expenses, raffles for monthly house cleaning, dog-walking or laundry services, or lunches via a food delivery service they are demonstrating care and concern for employees.

While Mother’s Day is only celebrated once a year, the struggles that women and working parents face daily should be a topic of conversation that is elevated and ongoing in boardrooms across the country. As increasing numbers of working parents and employees experience burnout and mental health concerns that may lead to further resignations, it is imperative for business leaders to combat the situation by promoting work-life balance, supporting career growth, boosting well-being efforts and offering relevant perks.

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Jill Chapman is a senior performance consultant with Insperity, a leading provider of human resources and business performance solutions.

When it comes to the SECURE Act 2.0's affect on businesses, here are six areas leaders of startups should consider. Photo via Pexels

6 things startups should know about the latest HR legislation, according to this Houston expert

guest column

In an effort to encourage more workers to save for retirement, the federal government passed the Setting Every Community Up for Retirement Enhancement (SECURE) Act that went into effect in December 2019, benefiting employers that established retirement plans with tax credits and providing employees with an avenue to save for retirement.

To build upon this retirement savings legislation, the U.S. House of Representatives recently passed a bill entitled, Securing a Strong Retirement Act of 2022, by an overwhelming bipartisan majority. This bill has been nicknamed SECURE Act 2.0 because it builds on the original SECURE Act. Although the SECURE Act 2.0 is not yet a law and requires consideration by the U.S. Senate, its powerful appeal in the U.S. House of Representatives is a strong indicator of further developments to retirement savings legislation in the not-so-distant future.

While the SECURE Act 2.0 affects all businesses, it appears that startups and small businesses may have the most to gain from the legislation in its current state. Below are six areas leaders of startups and small businesses should consider.

Boosts primary goals

The SECURE Act 2.0 is designed to boost the initial efforts of phase one by focusing on additional ways to address serious concerns about the adequacy of retirement savings in the U.S workforce. While it has always been critical for employees to take more responsibility for their retirement savings, now is the time to further elevate the conversation by appealing to employers and educating workers about investing early and the power of compound interest.

When more startups and small businesses offer retirement savings plans, it lays a foundation to increase the number of plan participants and improve their financial well-being. If the bill is passed, projections indicate at least a 10 percent increase in overall employee participation, which helps move the needle in a positive direction to advance retirement savings initiatives.

Offers employer incentives

The SECURE Act 2.0 provides significant incentives for startups and small businesses establishing retirement plans by doubling tax credits and number of employees who qualify. For businesses with fewer than 50 employees, the current tax credit is equal to 50 percent of administrative costs, with an annual cap of $5,000, for three years. However, the SECURE Act 2.0 would increase this to 100 percent for companies with up to 50 employees. It also creates a new credit that allows smaller employers to offset what they contribute to the plan, up to $1,000 per participant. This additional credit is available in full to employers with 50 or fewer employees, and a partial credit is available for employers with 51 to 100 employees. Penalties for some reporting mistakes will also be decreased, helping businesses avoid a negative impact on the bottom line.

Simplifies saving for employees

One of the best ways to save for retirement is through automatic payroll deductions that fund retirement accounts on a consistent basis. Many individuals are either uninformed, overlook the enrollment process, feel it is unaffordable or have other priorities. The SECURE Act 2.0 simplifies saving for employees by requiring employers that establish new plans to automatically enroll new hires in the plans at a pretax contribution level of three percent of their pay. The levels would escalate one percent annually up to at least 10 percent; however, they cannot exceed 15 percent of pay. There are some exceptions, including for small businesses with 10 or fewer employees. Although employees have the option to opt out of the program, in theory, it is simpler to remain enrolled, which can lead to increased financial security.

Appeals to multiple generations

With at least four generations currently in the workforce, employees are at different stages on their road to retirement, so the SECURE Act 2.0 takes the various groups into consideration. With older employees remaining in the workforce longer, the bill raises the age for required minimum distributions from 72-75 based on a phased approach. In addition, for employees aged 62-64, the catch-up contributions would be increased to $10,000 starting in 2024. However, starting in 2023, all catch-up contributions – affecting everyone age 50 and older – would have to be made to Roth accounts allowing the money to be taxed sooner. The benefit of Roth accounts is that distributions are tax-free.

The SECURE Act 2.0 provides the statutory basis for employers to match contributions for student loan debts based on employees’ student loan payments, even if employees are not making retirement contributions, which helps younger employees consumed with student loan debt continue to pay off loans, while getting retirement accounts started. It also addresses the influx of more long-term, part-time workers with at least 500 hours of service a year, by reducing the eligibility period for them to participate in a retirement plan from three consecutive years to two years, which is effective in 2023. With a broad appeal, startups and small businesses can rest assured that implementing a retirement plan will make a difference and benefit all workers.

Attracts and retains talent

When startups and small businesses evaluate their employee benefits, more weight is typically placed on providing health care benefits, as opposed to retirement plans, so they lag behind larger companies that offer 401(k) plans. As the competition for talent continues, smaller companies should consider establishing retirement plans to attract and retain top performers and gain a more competitive advantage. Through the SECURE Act 2.0, startups and small businesses would receive incentives to help level the playing field, so now is the time to develop a strategy and be prepared if/when the bill is passed.

Requires professional assistance 

Based on the current timeline, employers have roughly eight months to prepare, so it is vital to take the proper steps for their businesses. Establishing a 401(k) plan can be complicated and overwhelming for leaders at startups and small businesses, especially given their limited time and resources. Leaders should seek professional assistance rather than try it on their own for numerous reasons, including investment selection, fiduciary liability and payroll integration.

While providers such as banks, attorneys, accountants, insurance brokers and investment advisors may suffice, it is likely more efficient and cost effective to enlist a full-service HR provider that seamlessly handles HR administration and payroll processing, employee benefits, retirement services and more for a comprehensive approach to supporting startups and small businesses.

As startups and small businesses look for ways to move their companies forward, they should consider the benefits of establishing a 401(k) plan that not only attracts and retains top talent, but also helps to instill a greater sense of financial responsibility and well-being for the future of American families.

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John Stanton is vice president of retirement services operations with Houston-based Insperity.

This week's roundup of Houston innovators includes Kimon Angelides of FemTec Health, Sandy Guitar of HX Venture Fund, and Jill Chapman of Insperity. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — from venture capital to femtech — recently making headlines in Houston innovation.

Kimon Angelides, CEO of FemTech Health

Dr. Kimon Angelides, a serial entrepreneur in Houston, joins the Houston Innovators Podcast to discuss how he plans to disrupt women's health and beauty. Photo courtesy

Founded in 2020 by Kimon Angelides, FemTec Health is creating a holistic approach to women's health in both a B2B and a direct-to-consumers capacity. He explains on the Houston Innovators Podcast that most treatment for women is centered around age, rather than the type of health care they are looking for and need.

"Women don't really have a program that's designed for them," Angelides says on the show. "We embarked in terms of building a platform and a company that would be a single destination for women — one that's not age specific but built around journeys." Click here to continue reading.

Sandy Guitar, managing director of HX Venture Fund

Sandy Guitar of HX Venture Fund explains how they're working with out-of-town VCs to fund Houston companies in a recent Q&A. Photo courtesy

Last week, the HX Venture Fund — a fund of funds that makes investments as a limited partner in venture capital funds across the country — hosted Washington D.C.-based Revolution Ventures in Houston to introduce the firm to local entrepreneurs. Tige Savage, co-founder and managing partner of Revolution Ventures, and Sandy Guitar, managing partner of HX Venture Fund, join InnovationMap for a Q&A about how the two organizations are working together to put funding in the hands of Houston tech entrepreneurs.

"This is our second event this year already, and we've done about half a dozen of these so far of what we call VC engage days," Guitar says. "The idea of the VC engage day is to really connect all of our communities together." Click here to read more.

Jill Chapman, senior performance consultant with Insperity

Gen Z is predicted to represent more than 25 percent of the workforce by 2025 — here's how you can prepare your workplace for their imminent arrival. Photo courtesy of Insperity

Gen Z workers — they are coming. In a guest column for InnovationMap, Jill Chapman, senior performance consultant with Insperity, shares tips on preparing your workplace for the future.

"As business leaders prepare for an influx of Zoomers in the workplace by promoting mission/values, employee well-being, DEI and technology, they are also making significant strides toward improving the work environment, which leads to increased employee engagement, retention and performance for sustained business success." Click here to read more.

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CultureMap Emails are Awesome

Houston-based virtual reality startup raises $3.2M in first outside capital round

fresh funding

HTX Labs, a Houston-based company that designs extended reality training for military and business purposes, announced last week that it has raised its first outside capital.

The company has received a $3.2 million investment from Cypress Growth Capital. Founded in 2017, HTX Labs — developer of the EMPACT Immersive Learning Platform — has been granted funding from the Department of Defense as well as grown its client base of commercial Enterprises. The platform uses virtual and extended reality that "enables organizations to rapidly create, deploy, measure, and sustain cost-effective, secure, and centralized immersive training programs, all within engaging, fully interactive virtual environments," per a news release.

“We have been looking to secure outside capital to accelerate the growth of our EMPACT platform and customer base but we hadn’t found the right partner who provided an investment vehicle that matched our needs,“ says HTX Labs CEO Scott Schneider in the release. “We found everything we were looking for in Cypress Growth Capital. They have a non-dilutive funding model that aligns with our capital expectations and have the level of experience that really makes this smart money.

"Cypress has a decade-long track record of success in helping emerging software and services companies achieve scale," he continues. "It is clear that the team’s collective entrepreneurial and operating experience will be of tremendous benefit to us as we focus on expanding our customer base in a very intentional way.”

The fresh funding will go toward growing and scaling the company's operations — both within the current Department of Defense and expansion opportunities into key commercial markets, like heavy industry, manufacturing, and higher education. Additionally, the funding will support increased customer adoption.

“Scott and his team have built an exceptional business that is poised for dramatic growth,” says Cypress Partner Pat McCaffrey in the release. “HTX Labs’ modern, immersive training solution provides clients with a force multiplier for modernizing training and an unmatched ROI.”

Houston's biggest benefactors gift massive $50M to pivotal Rice University institute

big money

Houston’s most generous couple has once again gifted a massive sum to a local institution. Rich and Nancy Kinder’s Kinder Foundation has donated $50 million to Rice University’s Kinder Institute for Urban Research, the organization announced.

The Kinder's generous grant will assist the institute’s focus on what it dubs “inclusive prosperity” — that is, “ensuring that everyone can contribute to Houston's success and share in its opportunities.”

This new grant follows the approximately $30 million he Kinder Foundation previously gifted Rice’s Kinder Institute and its affiliates to facilitate its headquarters.

“Over the past decade, the Kinder Institute has played an integral role in shaping Houston,” said Rich Kinder, chairman of the Kinder Foundation. “However, we can do more to inform and more directly address the challenges our communities face, particularly in the areas of housing, education, economic mobility, health and population research.”

To that end, the Kinders’ funds will ensure the institute can assist its partners regardless of their ability to pay for research. Funds will also help the institute respond to community research needs quickly during times of crisis — such as a catastrophic storm or pandemic — when funds aren’t readily available.

Kinder Institute director Ruth López Turley calls the grant “a gift to all of Houston,” speaking to the institute’s work to improve lives through data, research, engagement and action.

“Inclusive prosperity doesn’t just happen spontaneously,” she noted in a statement. “It requires an explicit effort informed by research. Lots of organizations are working hard to make things better, but most of them have very limited research capacity, and that’s what the Kinder Institute is primed to do.”

Founded in 2010, the institute has evolved into a leader in research, data, and policy analysis of critical issues such as housing, transportation, and education. The institute also releases the familiar Kinder Houston Area Survey, which charts significant changes in the way area residents perceive and understand Houston’s ongoing challenges and opportunities.

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This article originally ran on CultureMap.

Expert: Building Hispanic wealth means investing in Houston

Guest column

Every year at this time ― Hispanic Heritage Month ― we collectively celebrate the economic, cultural, and social contributions of the Hispanic-Latino community to our nation. We honor the work of past generations which have allowed children and future generations to benefit from more opportunities.

As diverse a community as is the world, we strive to build a future where there are no barriers for success, and at Bank of America, we do our part to make an impact by helping build Hispanic-Latino wealth in Houston.

The numbers are clear: The 2020 Census revealed that the Hispanic-Latino population in the United States rose to 62.1 million, making up 18.7 percent of the total U.S. population and accounting for slightly more than half (51.1 percent) of the population growth between 2010 and 2020. Hispanic-Latinos now open more small businesses than any other group in the country and are also the fastest-growing demographic of small business owners across the nation. It is not surprising that Hispanic-Latino economic power continues to rise year after year. According to Nielsen Scarborough, the number of Houston Hispanic businesses have increased 85 percent since 2013.

Investing in business

Investing in Hispanic-Latino wealth means supporting entrepreneurs so they are set up for success. Early-stage funding is critical for the growth of a new business, especially when Hispanic-Latino entrepreneurs are still faced with gaps in financial literacy and business education, funding, and networking opportunities.

According to data from Crunchbase, Latino-founded startups accounted for only 2.1 percent of venture investments in the U.S. last year. This is unjustifiable.

As part of our commitment to advancing racial equality and economic opportunity, we have dedicated $350 million in minority- and women-led companies through capital investment by mission-focused venture funds. Of the funds we have in our portfolio, one in every four are led by Hispanic-Latino managers, providing capital that will help entrepreneurs and small business owners grow their businesses, create jobs, and improve financial stability.

An important element to creating opportunities for Hispanic-Latinos to build wealth, whether as a business owner or an employee, is ensuring that young people recognize higher education as a pathway to achieve success. That means partnering with colleges and universities and investing in job creation, skills-building, and support services for students to do so. Locally, we do this with EMERGE Fellowship and with the University of Houston College of Medicine. When we invest in students, we are investing in future professionals and business leaders who will build Hispanic-Latino wealth and contribute to Houston’s economy and culture. This is something we can celebrate together for years to come.

Investing in sustainable homeownership

Sustainable homeownership provides a lasting investment for future generations and cycles capital into the community. The National Association of Hispanic Real Estate Professionals (NAHREP) recently released data showing an increase in Latino homeownership, from 47.5 percent in 2019 to 48.4 percent in 2021, the highest level since the mid-2000s. Through the Community Homeownership Commitment, which provides low down payment loans and closing cost grants, families can take their savings and turn them into lasting legacies. It is a pillar for families to build wealth.

Here in Houston, we also support organizations that assist with homeownership, like Tejano Center, Avenue CDC, and Houston Habitat for Humanity. Building Hispanic-Latino home equity increases the amount of capital families can use now or in the future helping build our Houston economy.

During the past decade, the rate of Hispanic-Latino economic development has far outpaced rates among non-Hispanics. Supporting and honoring our Hispanic-Latino clients is not just a month-long initiative, it is a long-term, generational investment in America and we are proud to be investing in a stronger economy for Houston now and for years to come.

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Rick Jaramillo is the market executive for Bank of America Houston.