The company had grown organically from a small family business but still operated with informal HR practices. There were no written policies, inconsistent pay practices, minimal documentation, and no structured approach to hiring, discipline, or terminations. As the company prepared to expand, the owner recognized these gaps would create legal risk and operational chaos at scale. Banks and potential investors had raised concerns about HR infrastructure during growth planning discussions. The company needed to professionalize HR quickly but could not afford a full-time HR manager and did not know where to start.
Stone Capital Partners built HR compliance infrastructure over a six month engagement:
- Conducted a full compliance audit covering federal and state employment laws, wage and hour practices, safety requirements, and worker classification
- Developed a comprehensive employee handbook covering policies on attendance, conduct, leave, anti-discrimination, safety, and disciplinary procedures
- Created job descriptions for all roles with clear responsibilities, qualifications, and compensation ranges
- Implemented an applicant tracking and onboarding system that ensured consistent hiring practices and proper I-9 documentation
- Established personnel file management and record retention protocols to meet legal requirements
- Trained managers on proper documentation, performance management, and how to handle employee issues legally
- Set up workers' compensation and unemployment insurance programs with proper classification and reporting
The company now operates with compliant HR systems that can scale with growth. Within 9 months, headcount grew from 50 to 85 employees across three locations without HR becoming a bottleneck or creating legal exposure. The infrastructure gave lenders and investors confidence in the company's operational maturity, supporting two major financing rounds. Manager turnover decreased as leaders had clear tools and processes to manage teams effectively. The owner noted that the investment in HR infrastructure paid for itself by avoiding a single wrongful termination claim or wage dispute. Stone Capital Partners continues to provide fractional HR support as the company scales, adjusting systems and policies as needed for continued growth.
