Building Consistent Processes Drives Business Growth For Private Equity Firm
Wexford Capital Partners, LLC is a private investment firm focused on bringing their experience and relationships to businesses to create value for both the existing shareholders and their network of investors.
While actively seeking lower middle market industrial, consumer, and financial services opportunities, they needed HR help to navigate ownership transition challenges.
Wexford Capital Partners goal was to bring multiple new entities into their portfolio but they lacked consistent processes in payroll administration, benefits administration, and other human resource practices. Without the foundational HR infrastructure in place, Wexford Capital Partners portfolio company managers had no guidance or consistent procedures to follow, putting each entity at risk.
They needed an HR partner. Aside from their lack of infrastructure, we identified gaps in recruitment efforts. There were no recruiting processes or tools and all new employee onboarding was done via paper with no documented acquisition strategy.
After analyzing Wexford Capital Partners current practices, we proposed implementing processes to provide structure. Understanding the gaps in policies, tools and efforts determined what HR practices would best benefit the business. To build new and improved infrastructure, we:
- Created an employee handbook
- Implemented compliance checks
- Established benefit plans
- Improved onboarding processes
- Streamlined acquisition processes
New Employee Handbook
We started from scratch in order to create a document that could be applied across all portfolio companies. This process allowed us to build two new policies from the ground up – a brand new PTO policy and unique background check procedures. Creating an employee handbook helped the company create and maintain important policies across their acquired entities.
Implemented Compliance Checks
Compliance is key to any operation. We implemented compliance checks to make sure all entities and acquisitions were checking the boxes. These include multistate employers met specific liabilities, state paid leave laws, minimum wage, FLSA audit, and reclassifications.
Established Benefit Plans
To maintain compliance with medical plans based on state laws, we established company benefit plans. A variety of plan options are offered to both entities and employees. Our guidance allowed for an efficient and seamless open enrollment process.
Improved Onboarding Processes
Our first focus was a new Applicant Tracking System to help streamline an acquisition strategy for portfolio companies. After that, the EmPower HR team created a consistent and customized process for each company’s onboarding. Having the same “playbook” will allow all entities to follow the same process while having streamlined onboarding and orientation with an easy-to-access paperless system.
Streamlined Acquisition Processes
For the onboarding process of acquisitions, we needed to ensure all entities had consistent practices. This was a sensitive process that needed to foster unique cultures and preferences. But back office processes needed to be the same, no matter the company size. Our enhanced processes gave Wexford Capital Partners the ability to manage companies of all varieties.
Since partnering with EmPower HR, Wexford Capital Partners has added multiple entities. Thanks to consistent procedures, the company was able to set itself up to accommodate new company acquisitions, and they plan to continue to grow.
Before working with EmPower HR, all new employee onboarding was done via paper. With a documented acquisition strategy, management was able to save time and focus on what really matters: driving the company’s success.
With defined, repeatable processes across its portfolio of companies, Wexford Capital is well-positioned to continue its plans for significant growth.
Ensuring Consistency Across Entities
While the company growth was exciting, it was essential for Wexford Captial not to lose sight of established practices. The company faced a unique challenge: the companies under their portfolio ranged from startups to more mature businesses. Each had different needs, and Wexford Capital needed consistent HR infrastructure to handle its existing portfolio and its vision to grow.
As a multi-state entity, the private equity firm faced compliance challenges such as complex liabilities, varying state paid leave laws, minimum wage, FLSA audits, and more. We implemented compliance checks to make sure all entities and acquisitions were checking the boxes.
Working together, we made sure to establish consistent processes so that each entity is set up for success. With these new initiatives, there will be fewer conflicts, compliance risks, and confused employees.
Foundational policies including a PTO policy, background check procedures, and benefit plans created consistent practices and cohesion in all companies across the portfolio.
Implementing compliance checks help ease increasing compliance concerns. These will protect multistate owners, minimize company liability and ensure everything is staying on track to enhance the business’s growth.
EmPower HR streamlined onboarding processes for both employees and entities. These processes will allow smooth transitions and establish processes and expectations during growth.