Retaining employees is no easy feat these days. Encouraging a healthy PTO policy can help avoid burnout. Photo courtesy of Joe Aker

As many small businesses continue to operate in a challenging, fast-paced environment, one thing that has arrived at breakneck speed is midyear, along with the summer months. Theoretically, to ensure work-life balance, most employees should have 50 percent of their PTO remaining to use for summer vacations and during the second half of the year. In reality, that is probably not the case given workers are hesitant to use their PTO, leaving approximately five days of unused PTO on the table during 2020 and 2021.

While the pandemic affected PTO usage the last two years, the labor shortage appears to be a major contributor in 2022, which has led to PTO hoarding and increasing levels of employee burnout. Although these factors can be compounded for small business owners because there are fewer employees to handle daily responsibilities, it is imperative for workers to take PTO, returning recharged with a fresh perspective on the tasks at hand.

Many employers might feel caught off guard by the amount of unused PTO that remains, but the good news is there is plenty of time to address the issue. Below are five ways for small business owners to help prevent PTO hoarding and encourage workers to take their allotted time off.

Remind your employees

Midyear is a good time to remind employees about the company’s PTO program, which is typically included in the employee handbook. Employers can share a link to the specific section of the handbook via email, along with key bullet points about the program that should be highlighted. For example, requirements to submit PTO requests in advance to help manage workloads, any blackout dates related to the nature of the business that can affect customer service and maximum number of hours that can be carried over into the new year to avoid losing any PTO hours. While employees are busy juggling numerous professional and personal responsibilities, it can be easy for them to overlook planning for PTO, so a quick reminder can make a big difference as employees and the company prepare for the remainder of 2022.

Leverage summer months

For some companies, the summer months present a great opportunity for workers to use PTO because business is typically slower, many clients also take time off and it might be easier to cover workloads. If leaders explain the situation to workers, they might be more inclined to schedule PTO because they feel encouraged to do so and there is less concern about leaving co-workers to handle heavy workloads. Leveraging the summer months for PTO can be a win-win for employees and the company, as operations continue smoothly and workers enjoy much-needed relaxation.

Stress the health benefits

Leaders should encourage employees to take time off by stressing the importance of taking care of their mental and physical health. A change of scenery away from work helps reduce stress, encourages relaxation and boosts adaptability, which can lead to greater creativity and innovative thinking. If workers do not take time to disconnect and recharge, it can result in low employee morale and decreased performance that may have a snowball effect involving co-workers, departments and family members.

Generate excitement

One way to encourage employees to use their PTO is to generate excitement by developing creative ways to inspire them to plan a getaway or other activities, which can have a positive impact and help prevent hoarding. For instance, organizing a contest on the intranet in which employees share how they used their time off, encouraging employees to vote on the most unique entries and rewarding the top three with gift cards. This activity might inspire others to break their routines and take time for themselves and their families by planning something special with their unused PTO hours.

Lead by example

Small business owners should lead by example and use their PTO hours to recharge, which also sends a clear message to employees that it is okay to take time off. While many owners may feel they cannot take time away from the office, it is critical for them to recharge, especially after two years of heightened stress levels and longer hours. According to a Capital One Business Survey of small business owners, 52% have not taken a vacation in the past year, 42% are currently experiencing burnout or have experienced it within the past month and 44% report having worked more than usual due to employee shortages. Owners who set an example are not only encouraging workers to do the same, but they are also taking care of themselves so they can be better positioned to operate their businesses for ongoing success.

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.

------

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

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston maritime startup raises $43M to electrify vessels, opens new HQ

Maritime Mission

A Houston-based maritime technology company that is working to reduce emissions in the cargo and shipping industry has raised VC funding and opened a new Houston headquarters.

Fleetzero announced that it closed a $43 million Series A financing round this month led by Obvious Ventures with participation from Maersk Growth, Breakthrough Energy Ventures, 8090 Industries, Y Combinator, Shorewind, Benson Capital and others. The funding will go toward expanding manufacturing of its Leviathan hybrid and electric marine propulsion system, according to a news release.

The technology is optimized for high-energy and zero-emission operation of large vessels. It uses EV technology but is built for maritime environments and can be used on new or existing ships with hybrid or all-electric functions, according to Fleetzero's website. The propulsion system was retrofitted and tested on Fleetzero’s test ship, the Pacific Joule, and has been deployed globally on commercial vessels.

Fleetzero is also developing unmanned cargo vessel technology.

"Fleetzero is making robotic ships a reality today. The team is moving us from dirty, dangerous, and expensive to clean, safe, and cost-effective. It's like watching the future today," Andrew Beebe, managing director at Obvious Ventures, said in the news release. "We backed the team because they are mariners and engineers, know the industry deeply, and are scaling with real ships and customers, not just renderings."

Fleetzero also announced that it has opened a new manufacturing and research and development facility, which will serve as the company's new headquarters. The facility features a marine robotics and autonomy lab, a marine propulsion R&D center and a production line with a capacity of 300 megawatt-hours per year. The company reports that it plans to increase production to three gigawatt-hours per year over the next five years.

"Houston has the people who know how to build and operate big hardware–ships, rigs, refineries and power systems," Mike Carter, co-founder and COO of Fleetzero, added in the release. "We're pairing that industrial DNA with modern batteries, autonomy, and software to bring back shipbuilding to the U.S."

---

This article originally appeared on EnergyCapitalHTX.com.

Innovative Houston-area hardtech startup closes $5M seed round

fresh funding

Conroe-based hardtech startup FluxWorks has closed a $5 million seed round.

The funding was led by Austin-based Scout Ventures, which invests in early-stage startups working to solve national security challenges.

Michigan Capital Network also contributed to the round from its MCN Venture Fund V. The fund is one of 18 selected by the Department of Defense and Small Business Administration to participate in the Small Business Investment Company Critical Technologies Initiative, which will invest $4 billion into over 1,700 portfolio companies.

FluxWorks reports that it will use the funding to drive the commercialization of its flagship Celestial Gear technology.

"At Scout, we invest in 'frontier tech' that is essential to national interest. FluxWorks is doing exactly that by solving critical hardware bottlenecks with its flagship Celestial Gear technology ... This is about more than just gears; it’s about strengthening our industrial infrastructure," Scout Ventures shared in a LinkedIn post.

Fluxworks specializes in making contactless magnetic gears for use in extreme conditions, which can enhance in-space manufacturing. Its contactless design leads to less wear, debris and maintenance. Its technology is particularly suited for space applications because it does not require lubricants, which can be difficult to control at harsh temperatures and in microgravity.

The company received a grant from the Texas Space Commission last year and was one of two startups to receive the Technology in Space Prize, funded by Boeing and the Center for the Advancement of Science in Space (CASIS), in 2024. It also landed $1.2 million through the National Science Foundation's SBIR Phase II grant this fall.

Fluxworks was founded in College Station by CEO Bryton Praslicka in 2021. Praslicka moved the company to Conroe 2024.