Houston expert: Top three ways to make cybersecurity a business decision

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A Houston founder explains why you should shift the way you think about cybersecurity from a cost to an investment in your business. Photo via Getty Images

For companies big or small, scaling your revenue securely is about building people, processes, and technology to help you deliver your value to market in the most efficient way possible. But shifting cybersecurity as a cost to an investment takes a shift in thinking.

Here are three tips to make cyber a business decision for your company.

Don’t fail at digital transformation. Whether you’re considering a digital “initiative” to stay ahead of competitors, reduce operational expenditure when possible, or simply drive efficiency to customer value delivery, transforming how you’re doing business should rest upon a foundation of security across your existing people, process, or technology. An effective cybersecurity program should drive confidence to your team to expand your tooling, processes, or delivery mechanisms with confidence. The alternate reality is you shift a working process to incorporate new technology, and something fails or breaks, causing frustration of your team and fewer dollars in the door. Here are a few tips that will help you make sound business investments in technology:

  1. New technology or system can introduce new cyber risks to your company. As a result, it is good practice to balance the value gained with the risks absorbed. Establishing a “new product” risk vs reward process will reduce ad hoc purchases and introduce more sound thinking to your team’s decisions.
  2. New technology purchases will come with vendor onboarding but beware of the challenges you face when those implementation or training hours run out. Ask for additional support hours as part of your purchase so that you’re always able to call a help desk for real support.

Secure design reduces long-term costs. Regardless of your business type, if some type of cyber-attack could affect your business outcome(s) — be it your product, the loss of sensitive customer data, theft of intellectual property, or disruption to service delivery — consider investments in your cyber program an investment towards the cost of future business operations.

For instance, manufacturers across virtually every sector continually balance “secure design” with efficiency/cost as they compete in the market. Their challenge: estimating future recalls and product “updates” to be paid for by future operational expenditure. The same can be applied to unforeseen downtime of a critical inventory, payment capture, or website system. In both cases, here are two tips to shift cyber from a “security cost” to a “business” mindset:

  1. Work with your security vendors to develop a long-term strategy rather than quoting an “install and leave” project. Security vendors are businesses too. They will respond positively if you tell them you will offer longevity in return for payment over time. 
  2. Amortize your costs this year into next year's costs of goods. If you can negotiate monthly or quarterly payments with your security vendors, adding 30-60 days of net pay dates, you’re already starting to shift security improvements realized tomorrow to costs you pay next quarter.

Your customers want you to have a great cyber program. Especially in regulated spaces like healthcare, defense, and other critical infrastructure sectors, there is a high chance your company’s cyber program must meet minimal cyber guidelines. Investing in the training, processes, and technology required to achieve some element of “compliance” is a must-have investment for doing business with big companies.

A mistake small companies make is allocating the minimal resources “reach the bar” without thinking about the risks. Employee turnover, scaling your business in new regions, and increasing purchase order sizes all carry a potential “new bar” you must reach on your cyber maturity. Building a cyber program initiative may help you increase sales. Imagine you say this in your next prospect meeting as you aim to win that big contract, “Additionally, we reviewed your cybersecurity supplier requirements online and are pleased to say we have certified documentation showcasing an evolving, continually improving cyber program that exceeds your requirements. We feel that adds to our differentiation.”

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Ted Gutierrez is the CEO and co-founder of SecurityGate, a SaaS platform for OT cyber improvement.

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Three Houston startup founders took the stage to talk product/market fit, customer acquisition, funding, and the rest of the startup journey at a panel at SXSW. Photo courtesy of the GHP

Houston founders demystify startup journey on SXSW panel

Houston innovators podcast episode 177

Editor's note: On Monday at Houston House, a SXSW activation put on by the Greater Houston Partnership, I moderated a panel called “Demystifying the Startup Journey.” Panelists included three Houston founders: Ted Gutierrez, co-founder and CEO of SecurityGate.io, Simone May, co-founder and CTO of Clutch, and Gaurav Khandelwal, founder and CEO of Velostics. The three entrepreneurs discussed their journeys and the challenges they face — from product/market fit and hiring to fundraising and customer acquisition. Listen to the full conversation on this week’s episode of the Houston Innovators Podcast below. Thank you to SXSW and GHP for the recording.


This week's Houston innovators to know roundup includes Josh Pherigo of the Greater Houston Partnership, Brittany Barreto of FemTech Focus, and Ted Gutierrez of SecurityGate.io. Photos courtesy

3 Houston innovators to know this week

Who's who

Editor'snote: Another Monday, another round of innovators to know in Houston as you start your week. This week's edition features a researcher who has crunched the numbers on Houston's tech specialties, a founder who's shining a spotlight on femtech, and an entrepreneur who's snagged a deal with Chevron.

Josh Pherigo, research director of data analytics at the Greater Houston Partnership

Josh Pherigo at GHP used data to look into what tech specialties are thriving in Houston — and what niches have shown promising growth. Photo via LinkedIn

When Josh Pherigo decided to look where venture capital money was going in Houston, he did so to investigate what potential industries had growth opportunities. He found that Houston has an opportunity to be a leader in clean tech — but it has some in-state competition.

Pherigo's study for the Greater Houston Partnership found that there was a cleantech war emerging between Austin and Houston. While Houston's ecosystem has a greater presence of cleantech startups, Austin cleantech is still bringing in more VC investments. However, in Houston, between new corporate incubators and Greentown Labs entering Houston, the city is creating a lot of infrastructure for this industry.

"It's going to be interesting over the next few years to see how Houston can position itself as the leader in Texas for this, because they are going to have a lot of competition from Austin," Pherigo says. Read more.

Brittany Barreto, founder of FemTech Focus

Brittany Barreto launched FemTech Focus to help call attention to women's health and wellness, as well as to help accelerate companies with tech solutions within the field. Photo courtesy of FemTech Focus

Brittany Barreto has conducted dozens of interviews with femtech entrepreneurs, and it's become abundantly clear that general accelerators aren't giving femtech companies the full picture.

"Femtech startups actually need a little bit of different advice — that's why I'm very bullish on creating a femtech accelerator," Barreto says. "In femtech, we have some unique barriers. If you just go to a general accelerator, they might not cover these issues, and you'll be blindsighted."

Barreto is now working on specified program with The Guild that's launching this month. Then, in 2021, she hopes to go live with a full program under her company, FemTech Focus. Read more.

Ted Gutierrez, founder and CEO of SecurityGate.io

Chevron has tapped SecurityGate.io's risk management cybersecurity platform. Photo courtesy of Security Gate

Last week, Ted Gutierrez announced that his company, SecurityGate.io scored a partnership with Chevron. The deal means that the energy giant will adopt SecurityGate's risk management platform for scaling operational technology cybersecurity.

"We're very excited to be working with Chevron as they replace manual, spreadsheet cybersecurity practices with scalable, digitized processes," says Ted Gutierrez, CEO at SecurityGate.io, in a press release. "Their risk management team has done amazing work and it's exciting to see where they're headed." Read more.

The Texas Medical Center is buzzing with recent innovation news, from Texas A&M University naming its buildings, Houston Methodist is introducing a new technology, and more. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

Startup closes series A, Houston hospital taps into new tech, and more local innovation news

short stories

Houston's innovation ecosystem has been booming with news, and it's likely some might have fallen through the cracks.

For this roundup of short stories within Houston innovation, Deloitte is looking for tech companies to honor, a few Houston innovators have fresh funds, buildings rising in the Texas Medical Center now have names, and more.

Texas A&M names buildings in Innovation Plaza

Texas A&M University has named the buildings that will be a part of its Innovation Plaza. Photo courtesy of Texas A&M University System

The Texas A&M University System has revealed the names of the three buildings in the Texas A&M Innovation Plaza rising near the Texas Medical Center: Discovery Tower, Life Tower, and Horizon Tower.

Discovery Tower is the future home of A&M's EnMed program and is currently being renovated from an 18-story office building. Life Tower, which is expected to deliver in June 2022, is a 19-story, 714-bed student housing tower for Texas A&M medical students and Prairie View A&M University nursing students. Lastly, the Horizon Tower will be a 17-story, 485,000 square-foot integrated building that will feature a 13-story parking structure at the bottom.

SecurityGate closes series A

Ted Gutierrez, CEO of SecurityGate, announced the closing of his company's series A. Courtesy of Security Gate

SecurityGate.io, a software-as-a-service cybersecurity startup based in Houston, has closed its series A fundraising round. Houston Ventures led the capital raise. The amount raised has not been disclosed.

"It was very attractive to us how tightly tuned SecurityGate.io is to the needs of their customers," says Chip Davis, managing partner at Houston Ventures, in a news release. "Successful enterprise software companies generally know they are instruments of change for their customers."

Davis says the feedback from SecurityGate's customers was what sealed the deal.

"Digital transformation is no easy task in highly dynamic environments, especially when the risk of cyberattacks keeps rising daily. We're excited to partner with Houston Ventures who sees this market growing, and our clients that see our vision of the future," says Ted Gutierrez, CEO of SecurityGate, in the release.

Well Health launches at Houston Methodist

Thanks to tech from the West Coast, a Houston hospital has optimized virtual visits. Courtesy of Methodist Hospital/Facebook

Through a partnership with California-based WELL Health Houston Methodist was able up the ante on virtual visits during the pandemic. According to a news release, WELL enabled Houston Methodist to deliver over 260,000 text messages to patients Houston Methodist. The messages educated them about virtual care, schedule visits, and more.

"The ability to communicate back and forth, assuring patients that we are here for them both virtually and in-person is crucial as we continue to safely provide care in the midst of this pandemic," says Tesha Montgomery, vice president of operations and patient access at Houston Methodist, in the release.

Houston podcast network raises over $1 million

A podcast network with Houston ties has raised a seed round. Pexels

Lemonada Media, a podcast network with Houston roots that launched in September, has raised $1.38 million in a seed funding round led by Blue Collective, an early-stage venture capital firm. The fresh funds will allow for strategic growth for the two co-founders, Jessica Cordova Kramer, CEO, and Houstonian Stephanie Wittels Wachs, chief creative officer. Lemonada also plans to hire several positions including vice presidents across finance, production, and marketing.

"We are slated to be a content and talent incubator, spinning out new audio concepts and hit series that present humanity, unfiltered," says Wittels Wachs in a news release. "Now more than ever, people are hungry for content that addresses their lived experience, those that are mundane, and those that may be painful and isolating. Because our company was built off a mountain of personal grief and loss, Lemonada is well-situated to cut through the noise, create beautiful works of art, and make people laugh and feel less alone along the way."

Deloitte is looking for tech companies for annual competition

For the 26th year, Deloitte is looking for cutting edge tech companies. Photo courtesy of Deloitte

Deloitte has opened applications for its 2020 Technology Fast 500. The application is available online and closes July 17. To be eligible for the award, the startup must be in business for a minimum of four years, have its headquarters in North America, have fiscal year 2016 operating revenues of at least $50,000, a fiscal year 2019 operating revenues of at least $5 million USD with a growth rate of 75 percent or greater, and own proprietary intellectual property or proprietary technology which must be sold to customers in products or services that contribute to a majority of the company's operating revenues, according to the contest's rules.

Companies should also fall within one of the following industry categories: biotechnology/pharmaceutical, communications/networking, digital content/media/entertainment, electronic devices/hardware, energy tech, medical devices, semiconductor, or software/SaaS.

Lazarus 3D delivers PPE to Haiti

A few Houston innovators have helped get Haitians critical PPE. Photo courtesy of Orolait

A few Houston innovators have helped connect health care workers in Haiti to some PPE. Ana Rojas Bastidas, founder of Orolait, and Jacques and Smriti Agrawal Zaneveld of Lazarus 3D, teamed up to ship over 1,000 pieces of PPE to United States Foundation for the Children of Haiti which supported orphanages, schools, and a hospital called Hopital Espoir.

In the middle of April, Bastidas saw the organization's need for PPE and saw how Lazarus 3D was creating materials. The group in Haiti received the supplies by the beginning of June.

"I'm really proud of the collaboration between myself and the Lazarus 3D team," Bastidas says. "Smriti and Jacques are absolute gems and while our businesses are completely separate, we found a common problem we both had the resources to tackle."

CryptoEQ begins offering consulting packages

Need custom cryptocurrency support? CryptoEQ is here to help. Courtesy of CryptoEQ

A cryptocurrency startup based in Houston has expanded its service to include custom-consulting packages.

"With our personalized packages, gain the market insights you need to refine your cryptocurrency investing and trading strategies," writes Spencer Randall, co-founder and principal of CryptoEQ.

The packages come at three levels: the enthusiast, the professional, and the expert. The individualized support begins at $499, and more information can be requested from the startup by emailing team@cryptoeq.io.

This week's innovators to know include University of Houston business school Dean Paul Pavlou, the PR Boutique's Karen Henry, and SecurityGate Founder Ted Gutierrez. Photos courtesy

3 Houston innovators to know this week

Who's who

As another week begins, there's a few people you should know within the business and innovation world of Houston.

This week's Houston innovators to know includes a quick-thinking business school dean leading a college virtually, a public relations expert with the reasons you need to focus on social media for your business, and an entrepreneur who's providing key resources for business owners looking to safely get workers back in the office.

Paul Pavlou, dean of the C.T. Bauer College of Business at the University of Houston

Courtesy of The University of Houston

The University of Houston's C.T. Bauer College of Business is going to remain completely online only through the summer. And, while that might present some challenges for students and staff, Dean Paul Pavlou says he's actually seeing an increase in enrollment. Plus, the virtual platforms allow faculty to support more classes.

"One advantage of online learning is it's very flexible — we aren't confined to the classroom," Pavlou says on this week's episode of the Houston Innovators Podcast. "We've opened up more sections and seats to make it easier for students to sign up." Read more and stream the episode.

Karen Henry, founding partner of The PR Boutique

Photo courtesy of the PR Boutique

Public relations expert Karen Henry, who founded the PR Boutique based in Houston, shared in a guest column for InnovationMap how key — especially in times like these — your company's online pressence is.

"We cannot work in silos; instead, we need to have a comprehensive approach, including tactics such as media relations, community partnerships, unique events, influencer collaborations, digital and traditional advertising, email marketing and social media," Henry writes.

Social media, she argues, can be a powerful, cost-effective tool. Read more.

Ted Gutierrez, CEO and founder of SecurityGate

Courtesy of Security Gate

Houston-based software startup SecurityGate Inc. specializes in cyber-risk management for companies, but this spring, SecurityGate shifted to a different type of risk management — keeping workplaces healthy in the wake of the coronavirus pandemic. The company launched a cloud-based wellness technology, available through an online platform and a mobile app.

"The biggest thing that I want people to know is you don't have to come up with your own workflow and you don't have to spend tons of money to get your people back to work," says Ted Gutierrez, co-founder and CEO of the three-year-old startup. "There's a company out there that is already doing this for a living, so this is the least we could do to help out." Read more.

Cybersecurity startup, SecurityGate, has developed a new feature in its technology to help support companies safely bring back employees into the office. Luis Alvarez/Getty Images

Houston startup releases new tool to help companies get employees safely back into work

tech tool

Houston-based software startup SecurityGate Inc. focuses on cyber-risk management for major energy, chemical, transportation, and defense companies. But this spring, SecurityGate shifted to a different type of risk management — keeping workplaces healthy in the wake of the coronavirus pandemic.

When SecurityGate recently started reopening the gates, so to speak, for its 15 employees to go back to the office after working remotely, the company wanted to track their health. So SecurityGate turned to Excel spreadsheets for employees to fill out a 10-point questionnaire aimed at gauging their health. It didn't take long, though, for the company to realize it could ditch the spreadsheets and layer the wellness questionnaire on top of its cyber-risk management software.

Now, SecurityGate is inviting companies inside and outside its core sectors to sign up for its cloud-based wellness technology, available through an online platform and a mobile app. The goal: Help employers incorporate health screenings into their return-to-work initiatives. Employers in North America and Europe can install the technology.

"The biggest thing that I want people to know is you don't have to come up with your own workflow and you don't have to spend tons of money to get your people back to work," says Ted Gutierrez, co-founder and CEO of the three-year-old startup. "There's a company out there that is already doing this for a living, so this is the least we could do to help out."

The wellness technology is a free add-on for customers of SecurityGate's existing products, a software-as-a-service platform and a mobile app for managing cybersecurity risks that threaten critical infrastructure. Gutierrez says those products help protect nearly 30 global facilities valued at $300 billion.

Companies that aren't customers of SecurityGate can take advantage of the wellness platform and app at no cost through at least July 31, Gutierrez says. Among the soon-to-be users of the coronavirus-inspired technology is a residential real estate firm in Houston with nearly 100 employees. While SecurityGate's current customers are big companies, the wellness technology should appeal to small, midsize, and large employers, he says.

"This is going to be opened up to any company that needs help. We believe that the majority of users that are going to sign up are companies ranging between 50 and 500 employees and in any industry," Gutierrez says.

By May 15, about 15 to 20 companies are expected to have signed up for the wellness technology, Gutierrez says. He envisions that number rising to 200 to 300 by June 1. The online platform should be ready in late May, while the mobile app should be available by June 1.

Each user of the wellness tool will receive a COVID-19 care package that includes items like face masks, gloves, and sanitizers.

Gutierrez says the technology can help monitor the health of not only on-site and off-site employees, but also contractors and office visitors. Any user of the technology can submit a coronavirus assessment without being directed to complete one, he says. It takes less than 90 seconds to fill out the wellness assessment.

"Traditionally with SecurityGate, the 'owner' of the SecurityGate platform has to assign [cyber-risk] assessments to facility owners," Gutierrez says. "This app is going to be able to get used at any given time by any user."

All of this data is funneled into a central database so that an employer can, for instance, order in-house coronavirus testing or ask employees to stay at home if they're exhibiting coronavirus symptoms, Gutierrez says. The data isn't automatically supplied to public health agencies, he says, although an employer could decide on its own to publicly report the data.

"This is purely a workforce management option," Gutierrez says. "It's still to be determined whether this turns into a revenue generator for us. The most important thing that we can do is to help whatever ecosystem needs help right now and get them back to work."

Gutierrez credits Cherise Esparza, co-founder and chief technology officer of SecurityGate, with being the primary driver of the return-to-work wellness effort.

"We are the risk management folks," Gutierrez explains, "and getting back to work safely is just as important as making sure that all your critical systems are working from a cyber perspective."

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Houston startups dominate ‘most-promising’ companies announcement at annual event

on the list

Rice University played host this week to the 12th annual Texas Life Science Forum, where life science leaders and startup founders could network, learn and present pitches on their solutions to a wide array of health-related issues.

Hosted by Rice Alliance for Technology and Entrepreneurship and BioHouston on November 7, the event brought together more than 600 attendees for a series of keynote speakers and panels. This year, 45 early-stage therapeutic, diagnostic, medical device and digital health companies—many of which are based in Houston—also pitched their concepts.

Fort Worth-based AyuVis Research walked away from the event with the two top recognitions: The Michael E. DeBakey Memorial Life Science Award and the People's Choice Award. The company, which has developed a small molecule immunotherapy targeting bronchopulmonary dysplasia (BPD) in preterm neonates and other respiratory disorders. The company is raising a $20 million Series A round to support its clinical development and is slated to pitch at IGNITE Health’s Fire Pitch 2023 today, November 9, at the Ion.

Each year the Rice Alliance and BioHouston also name its 10 most promising life science companies, selected by investors—seven out of 10 of which are based in Houston. This year's selection included the following companies, in alphabetical order:

  • 7 Hills Pharma: This Houston-based clinical stage immunotherapy company has developed the concept of allosteric activation of integrins to facilitate cell adhesion and promote immune responses. The concept has uses in preventing infection and cancer, and increasing the effectiveness of oncology drugs and infectious disease vaccines.
  • Bairitone Health: This Houston-based company is building a scalable diagnostic system for sleep apnea anatomy utilizing home-use wearable, passive Sonar technology and AI techniques.
  • Diakonos Oncology: Also based in Houston, Diakonos' Dendritic Cell Vaccine was awarded the FDA’s Fast Track designation. The clinical-stage biotech company's immunotherapies have shown early successes for hard-to-reach, aggressive cancers like Glioblastoma Multiforme.
  • Mongoose Bio: With more than 20 years of research, Mongoose specializes in T cell-based therapies for diverse solid tumors TCR-based therapies in cancer patients. The Houston-based company has developed an immunopeptidome discovery platform for TCR-based therapies in cancer patients.
  • Nandi Life Sciences: Nandi is developing antibodies for Avastin-resistant ovarian cancer, with
  • further application in breast, colorectal and lung cancer. The company is based out of Texas Medical Center Innovation.
  • NKILT Therapeutics: This Houston-based company's seed-stage cell therapy has applications in solid tumors, such as colorectal cancer, ovarian cancer, clear cell renal carcinoma, endometrial
  • cancer and more. It is developing a novel and proprietary Chimeric ILT-Receptor.
  • NuVision Biotherapies: Based in the United Kingdom, NuVision has developed and proven a treatment for dry eye disease. It's known for its Omnigen and OmniLenz products and is raising a series A to scale, take the business to profitability and exit.
  • Panakeia Technologies: Also based in the UK, Panakeia has developed an AI-based software that can provide multi-omic biomarkers in minutes. Currently this process takes days or weeks. It's RuO platform can identify 4,500 known multi-omics cancer markers.
  • Taurus Vascular: A recent spin-out of the Texas Medical Center Innovation Biodesign program, Taurus is developing a novel, catheter-based solution for treating endoleaks, which can be related to aortic aneurysms.
  • YAP Therapeutics: The only California-based company to make the cut, this preclinical-stage biotech develops genetic medicines that leverage the company’s tissue renewal and regeneration platform to reverse and cure severe diseases, including heart failure, pulmonary diseases, retinal degeneration and hearing loss.

Last year, Bairitone Health took home the DeBakey and People's Choice awards.

Annual report ranks 4 Houston tech companies on list of fasting growing businesses

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Deloitte just unveiled the fastest-growing technology companies in North America — and four businesses from Houston made the cut.

For the 29th year, 2023 Technology Fast 500 ranked top tech, media, telecommunications, life sciences, and energy technology companies based on fiscal year revenue growth from 2019 to 2022. While no Houston business was able to break into the top 100, four did make the cut for this year's list.

“It is great to see Houston represented alongside established technology hubs on this year’s Fast 500 list,” Amy Chronis, vice chair, US Energy and Chemicals Leader and Houston managing partner at Deloitte, says in a statement. “Houston is planting seeds for future innovation, and the companies named to this year’s list confirm our city’s value proposition as an innovative community. We look forward to this growth continuing in the future and extend our congratulations to this year’s Houston winners.”

The four Houston companies that make the 2023 list are:

  • Direct Digital Holdings at No. 108 with 1,325 percent growth
  • Liongard at No. 208 with 680 percent growth
  • NatGasHub.com at No. 356 with 364 percent growth
  • P97 Networks at No. 506 with 225 percent growth

Thirty Texas companies made the list of the 541 ranked, making it the fourth most concentrated hub on the list behind the Bay Area, Tri-State Area, and New England. The companies on the list reported a revenue growth ranging from 201 percent to 222,189 percent over the three-year time frame from 2019 to 2022. The average growth rate was 1,934 percent and a median growth rate of 497 percent.

“Each year, we look forward to reviewing the progress and innovations of our Technology Fast 500 winners," Paul Silverglate, vice chair, Deloitte LLP and U.S. technology sector leader, says in the release. "This year is especially celebratory as we expand the number of winners to better represent just how many companies are developing new ideas to progress our society and the world, especially during a slow economy. While software and services and life sciences continue to dominate the top 10, we are encouraged to see other categories making their mark."

Software dominated the industry breakdown with 57 percent of the companies working in that field. However, the top company for 2023 was Vir Biotechnology Inc., a life science company that developed a COVID-19 treatment. Vir was also the top company in 2022.

Last year, only one Houston company made the list. At No. 372 Onit reported a revenue increase of 369 percent. The company also made the 2021 list, along with Graylog and Enercross.

Houston expert shares strategies for addressing  potential workforce shortages

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The energy industry, a vital part of Houston’s business ecosystem, faces the challenge of a shrinking workforce.

A U.S. Chamber of Commerce report indicates the workforce has nearly two million fewer workers today as compared to February 2020. A considerable part of this decline can be attributed to retirement and early retirement rates, with the pandemic prompting three million people to early retirement. Furthermore, with an estimated 10,000 Baby Boomers turning 65 daily, the entire generation is expected to reach retirement age by 2030.

The tight labor market, coupled with the growing brain drain associated with retirement rates, should serve as a wake-up call for employers in the energy sector. There are tried-and-true strategies to prepare businesses for waves of retirement and ensure the knowledge does not walk out the door.

Upskilling: Invest in the workforce

Knowledge and skills go with workers are they retire. To mitigate the brain drain, companies need to invest in upskilling their existing employees and new hires. Establishing formal training and development opportunities can help enrich the workforce to pick up the responsibilities of retiring colleagues. This investment ensures a smooth transition, shows employees they are valued by the organization, and increases employee loyalty and engagement.

Adopting innovative training programs that cater to the specific needs of the energy sector is one approach. Technologies rapidly evolve, and employees must stay current to remain effective in their roles. Investing in the latest training programs, workshops and certifications will enable the workforce to thrive in a rapidly changing industry.

Mentoring programs: Pass the torch

Mentorship programs can play a pivotal role as more employees retire. Experienced employees nearing retirement can mentor younger workers, transferring knowledge and skills while ensuring a seamless transition of expertise. The value of mentorship programs can be priceless for an organization as they help transfer on-the-job learning and experiences that are not taught in the classroom.

A structured mentorship program usually proves most effective as it outlines the responsibilities of the mentors and mentees. A structured approach, which should have built-in accountability measures, ensures there is a productive knowledge transfer process.

Intentional recruitment: Attract and retain talent

A proactive recruitment approach is essential as businesses work to fill knowledge gaps. Companies in the energy sector should seek out talent to bridge the generational divide. This may include targeting candidates who have the relevant skills and knowledge, yet they are willing to adapt to the industry’s changing landscape.

Workplace culture is still a relevant and important component of attracting and retaining top-notch talent. Beyond competitive compensations packages, today’s job candidates look for growth opportunities and a focus on work-life balance.

Retaining knowledge: Document the expertise

Institutional knowledge will walk out the door as experienced employees retire. Companies can prepare for and mitigate the knowledge migration with knowledge-sharing systems and comprehensive documentation processes. An established process can help preserve information that may seem like second nature to more experienced employees and make it accessible to current and future employees. Asking retiring employees to document their expertise and best practices can safeguard their insights within the organization.

Covering bases: Create an alumni network

Retirement does not always mean the employee wants to hang up their proverbial hat entirely. Filling the knowledge gap as employees retire can be daunting. However, the development of an alumni network can extend the life of the institutional knowledge and knowledge-sharing process. Bringing back retirees on a project basis or to consult is a solution benefiting everyone involved.

Every industry must prepare for the impending wave of retirements. The energy industry’s significant impact on the Houston economy requires proactive and thoughtful solutions. The tight labor market and retirement rates should have businesses in this sector working diligently to fill the upcoming knowledge gaps through upskilling, mentoring, intentional recruitment, knowledge-sharing systems and alumni networks. Taking these steps now, the energy industry can circumnavigate workforce shortages and prepare for continued success.

———

Jill Chapman is a director of early talent programs with Insperity, a leading provider of human resources and business performance solutions. This article originally ran on EnergyCapital.

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