Managing a workforce with varied skillsets can be an obstacle for businesses of any size. Here are three tips for navigating this challenge. Photo via Getty Images

As each person is uniquely different, their capabilities are directly reflected in the workplace in terms of how work is delegated to high performing, standard performing and underperforming employees based on their skill sets. For some employees, they thrive when being recognized as the individual who is trusted to always get the job done or complete a last-second task. Meanwhile, other employees may struggle with execution or efficiency, which may mean fewer new assignments for them.

Experienced managers will be able to decipher what is wrong in this scenario. Although it has become a societal norm to assign added work to high performers as a reward, this well-meaning intention can ultimately lead to performance punishments. As the overachievers are “awarded,” the average or below average performers are not placed in conditions that will push them beyond their comfort levels nor to their personal optimal performance capacity. This tactic is also referred to as a “quiet promotion,” in which top performers are given additional work without the benefit of a promotion or increased compensation.

“Quiet promotion” can have severe repercussions for top performers such as increased stress and burnout, which can subsequently lead to lowered productivity. According to a 2022 study by the American Institute of Stress, 76 percent of workers reported that stress harms their overall productivity. To avoid unintentional performance punishments, managers can implement opportunities for continual skill development, provide more balanced workloads and practice honest communication.

Create spaces to develop skills

Yearly reviews are a critical opportunity for managers to highlight their employees’ achievements and identify areas for improvement. However, a formal review is not the only time employees should receive praise or constructive criticism from their managers.

Managers have a more accurate scope of which skills the employee may lack and can assign development opportunities when they touch base with employees throughout the year. This creates a level field for performers to feel eager for development opportunities, and candidates who perform at a lower level will benefit, too. When a culture of continuous development is cultivated, it keeps top performers engaged and mitigates the sense of needing to catch up for those on a development track.

Encourage collaboration

While top performers can complete tasks without additional support, collaboration with colleagues at all levels can elevate work across the board. Partnering top performers with those who may need to fine-tune and develop relevant skills allows top performers to improve their leadership and training skills while building trusting relationships within the team or organization. Group collaboration allows employees to discover and hone their strengths and identify weaknesses so even better work is done together.

Implement honest communication

Top performers, more often than not, work above set expectations. When top performers feel they are due for a promotion as a result of their performance, but have not received it or are overlooked, a once content employee might consider searching for a new job. To avoid potential dispirited employees and impromptu resignations, managers should practice clear and effective communication with their team.

Whether during a yearly review or a biweekly check-in, take the time to ask top performers directly about where they see themselves now, where they would like to go within the organization and whether a promotion is on their radar. In a transparent and open culture, employees will feel more inclined to be outspoken about their intentions. Those who are exploring the idea of moving on will give their manager the opportunity to present other opportunities, advocate for a deserved promotion or articulate a detailed career path to reach the desired position.

Performance punishments are often unintentional, but managers need to be aware the practice can ultimately cause a disconnect within their team and burnout with their top talent. With continual opportunities for skill development, distribution of balanced workloads and transparent communication, managers can lead everyone on their team to growth and success.

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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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Houston space tech companies land $25 million from Texas commission

Out Of This World

Two Houston aerospace companies have collectively received $25 million in grants from the Texas Space Commission.

Starlab Space picked up a $15 million grant, and Intuitive Machines gained a $10 million grant, according to a Space Commission news release.

Starlab Space says the money will help it develop the Systems Integration Lab in Webster, which will feature two components — the main lab and a software verification facility. The integration lab will aid creation of Starlab’s commercial space station.

“To ensure the success of our future space missions, we are starting with state-of-the-art testing facilities that will include the closest approximation to the flight environment as possible and allow us to verify requirements and validate the design of the Starlab space station,” Starlab CEO Tim Kopra said in a news release.

Starlab’s grant comes on top of a $217.5 million award from NASA to help eventually transition activity from the soon-to-be-retired International Space Station to new commercial destinations.

Intuitive Machines is a space exploration, infrastructure and services company. Among its projects are a lunar lander designed to land on the moon and a lunar rover designed for astronauts to travel on the moon’s surface.

The grants come from the Space Commission’s Space Exploration and Aeronautics Research Fund, which recently awarded $47.7 million to Texas companies.

Other recipients were:

  • Cedar Park-based Firefly Aerospace, which received $8.2 million
  • Brownsville-based Space Exploration Technologies (SpaceX), which received $7.5 million
  • Van Horn-based Blue Origin, which received $7 million

Gwen Griffin, chair of the commission, says the grants “will support Texas companies as we grow commercial, military, and civil aerospace activity across the state.”

State lawmakers established the commission in 2023, along with the Texas Aerospace Research & Space Economy Consortium, to bolster the state’s space industry.

Houston experts: Can AI bridge the gap between tech ambitions and market realities?

guest column

Despite successful IPOs from the likes of Ibotta, Reddit and OneStream, 2024 hasn’t provided the influx of capital-raising opportunities that many late-stage tech startups and venture capitalists (VCs) have been waiting for. Since highs last seen in 2021—when 90 tech companies went public—the IPO market has been effectively frozen, with just five tech IPOs between January and September 2024.

As a result, limited partners have not been able to replenish investments and redeploy capital. This shifting investment landscape has VCs and tech leaders feeling stuck in a holding pattern. Tech leaders are hesitant to enter the public markets because valuations are down 30 percent to 40 percent from 2021, which is also making late-stage fundraising more challenging. After all, longer IPO timelines mean fewer exit opportunities for VCs and reduced capital from institutional investors who are turning toward shorter-term investments with more liquid exit options.

Of course, there’s always an exception. And in the case of a slowed IPO market, a select slice of tech companies—AI-related companies—are far outperforming others. While not every tech startup has AI software or infrastructure as their core offering, most can benefit from using AI to revise their playbook and become more attractive to investors.

Unlocking Growth Potential with AI

While overall tech startup investment has slowed, the AI sector burns bright. This presents an opportunity for companies that strategically leverage AI, not just as a buzzword but as a tool for genuine growth and differentiation. Imagine a future where AI-powered insights unlock unprecedented efficiency, customer engagement and a paradigm shift in value creation. This isn’t just about weathering the current storm of reduced access to capital; it’s about emerging stronger, ready to lead the next wave of tech innovation.

Here's how to navigate the AI frontier and unlock its potential:

  1. Understand that data is the foundation of AI success. AI is powerful, but it’s not magic. It thrives on high-quality, interconnected data. Before diving into AI initiatives, companies must assess their data health. Is it structured in a way that AI can understand? Does it go beyond raw numbers to capture context and meaning—like customer sentiment alongside sales figures? Rethinking data infrastructure is often the crucial first step.
  1. Focus on amplifying strengths, not reinventing the wheel. The allure of AI can tempt companies into pursuing radical reinvention. However, a more effective strategy is to leverage AI to enhance existing strengths and address core customer needs. Why do customers choose your company? How can AI supercharge your value proposition? Consider Reddit’s strategic approach: They didn’t overhaul their platform before their 2024 IPO. Instead, they showcased the value of their vast online communities as fertile ground for AI development, leading to a remarkable first-day stock surge of 48 percent.

  2. Use AI as a customer-centric force multiplier. Companies with a deep understanding of their customer base are primed for AI success. By integrating AI into the very core of their product or service—the reason customers choose them—they can create a decisive competitive advantage based on delivering tangible customer value.

From Incremental Gains to Transformative Growth

This practical, customer-centric approach has the potential to help companies generate immediate growth while laying the foundation for future reinvention. By leveraging AI to optimize operations, deepen customer relationships, and redefine industry paradigms, late-state tech startups can not only survive but thrive in a dynamic market. The future belongs to those who embrace AI not as a destination but as a continuous journey of innovation and growth.

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Hong Ogle is the president of Bank of America Houston. Rodrigo Ortiz Gomez is a market executive in Bank of America’s Transformative Technology Banking Group as well as the national software banking lead for the Global Commercial Bank.

Houston joint venture secures $5.2M for AI-powered methane tracking tech

Fresh Funds

Houston-based Envana Software Solutions has received more than $5.2 million in federal and non-federal funding to support the development of technology for the oil and gas sector to monitor and reduce methane emissions.

Thanks to the work backed by the new funding, Envana says its suite of emissions management software will become the industry's first technology to allow an oil and gas company to obtain a full inventory of greenhouse gases.

The funding comes from a more than $4.2 million grant from the U.S. Department of Energy (DOE) and more than $1 million in non-federal funding.

“Methane is many times more potent than carbon dioxide and is responsible for approximately one-third of the warming from greenhouse gases occurring today,” Brad Crabtree, assistant secretary at DOE, said in 2024.

With the funding, Envana will expand artificial intelligence (AI) and physics-based models to help detect and track methane emissions at oil and gas facilities.

“We’re excited to strengthen our position as a leader in emissions and carbon management by integrating critical scientific and operational capabilities. These advancements will empower operators to achieve their methane mitigation targets, fulfill their sustainability objectives, and uphold their ESG commitments with greater efficiency and impact,” says Nagaraj Srinivasan, co-lead director of Envana.

In conjunction with this newly funded project, Envana will team up with universities and industry associations in Texas to:

  • Advance work on the mitigation of methane emissions
  • Set up internship programs
  • Boost workforce development
  • Promote environmental causes

Envana, a software-as-a-service (SaaS) startup, provides emissions management technology to forecast, track, measure and report industrial data for greenhouse gas emissions.

Founded in 2023, Envana is a joint venture between Houston-based Halliburton, a provider of products and services for the energy industry, and New York City-based Siguler Guff, a private equity firm. Siguler Gulf maintains an office in Houston.

“Envana provides breakthrough SaaS emissions management solutions and is the latest example of how innovation adds to sustainability in the oil and gas industry,” Rami Yassine, a senior vice president at Halliburton, said when the joint venture was announced.

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This story originally appeared on our sister site, EnergyCapitalHTX.com