The company had doubled revenue in 18 months as OEM customers transitioned to electric vehicle production, but the workforce and HR infrastructure had not kept pace. Turnover on the production floor exceeded 45%, quality issues were increasing due to inadequate training, and the company struggled to attract skilled machinists and technicians in a competitive labor market. The leadership team had no HR expertise and was managing people issues reactively, leading to inconsistent policies, compliance gaps, and mounting employee relations problems. The CEO recognized that without strategic HR leadership, workforce challenges would limit the company's ability to capitalize on market demand. However, hiring a full-time CHRO at $200,000+ annually felt premature given the company's size and stage.
Stone Capital Partners stepped in as fractional Chief Human Resources Officer for an 18-month engagement:
- Conducted a workforce assessment to identify root causes of turnover, including compensation competitiveness, work environment issues, and management practices
- Redesigned compensation structure with market-based pay ranges, shift differentials, and retention bonuses that improved competitiveness without breaking the budget
- Implemented structured onboarding and skills training programs that reduced time-to-productivity for new hires by 40%
- Developed career pathways for production workers that created visibility into advancement opportunities and reduced turnover among high performers
- Trained supervisors and managers on performance management, employee engagement, and conflict resolution
- Built HR compliance infrastructure including updated policies, manager training, and documentation systems
- Partnered with operations leadership to address workplace culture issues and improve communication between management and hourly workforce
- Established recruiting partnerships with technical schools and community colleges to build talent pipelines for skilled trades roles
Within 12 months, turnover dropped from 45% to 18%. Quality metrics improved as the workforce stabilized and training programs took hold. The company successfully filled 13 open positions for skilled roles that had been vacant for months, enabling production increases to meet customer demand. Employee engagement scores increased significantly, and the leadership team gained confidence in managing people strategically rather than firefighting daily crises. The CEO noted that having fractional CHRO support provided executive-level HR leadership at a fraction of the cost of a full-time hire, and the business results far exceeded the investment. As the company approached $50M in revenue, Stone Capital Partners transitioned the fractional role by recruiting and onboarding the company's first full-time HR Director, ensuring continuity and sustained momentum.
