A structured review of HR structure, policies, documentation, compliance exposure, supervisor practices, and recurring people issues — with a priced path to fix what it finds.
This report answers three questions: where is HR risk already sitting in your organization, which exposures deserve leadership attention first, and what should the next twelve months of correction look like. It is built from a document review, leadership interviews, a personnel file sample, and a walkthrough of your supervisor workflows.
Every finding is rated High Risk Needs Attention or Stable. Ratings reflect exposure and likelihood, not blame. Most findings in most organizations are system problems showing up through people.
Hearthstone runs a disciplined shop floor, and payroll, scheduling, and safety basics are in better shape than most 48-employee operations. The people risk sits somewhere specific: employment decisions are moving faster than the documentation that has to defend them. Two terminations in the last year were justified but poorly supported on paper. The handbook has not kept pace with current Texas and federal requirements. Supervisors are consistent about production and inconsistent about people.
| Domain | Status | Why |
|---|---|---|
| HR Structure & Ownership | Needs Attention | HR sits with the office manager plus the owner; no senior review before sensitive decisions. |
| Policies & Handbook | High Risk | Handbook last revised 2019; missing current leave, accommodation, and electronic-monitoring language; two policies contradict actual practice. |
| Employee Documentation & Files | High Risk | File sample: 7 of 12 files missing signed acknowledgments; discipline documented in 3 of 9 known incidents; I-9s stored inside personnel files. |
| Compliance Exposure | Needs Attention | Two lead roles likely misclassified as exempt; overtime approval informal; posting requirements current. |
| Supervisor Practices & Accountability | Needs Attention | Feedback verbal and undocumented; escalation path unclear; one supervisor generates a disproportionate share of complaints. |
| Recurring People Issues & Process | Stable | Turnover below industry norm; hiring pipeline steady; onboarding checklist exists and is mostly followed. |
Why it mattersCommingled I-9s expose the entire personnel file in a government inspection, and audit penalties accrue per form.
First movePull all I-9s into a standalone binder or system this month; run a self-audit against the current form version.
Why it mattersThe next contested termination will be judged on the file, not on leadership's memory. Today the file loses.
First moveAdopt the one-page corrective action record in the appendix; require it for every incident beginning immediately.
Why it mattersMisclassification liability compounds weekly through unpaid overtime and reaches back two to three years.
First moveDuties-test both roles; if they fail, correct classification and pay practice prospectively with counsel input.
Why it mattersA policy the company does not follow is worse in a dispute than no policy at all.
First moveCorrect the two contradictions now by memo; schedule the full handbook rebuild in Q1 of the roadmap.
Why it mattersOne supervisor accounts for most employee friction; unmanaged, this becomes a retaliation or constructive-discharge narrative.
First moveSet documented expectations and a 60-day coaching plan with senior HR support behind it.
Exposure: decisions made under time pressure without senior review; administrative staff carrying risk they were not hired to manage.
Exposure: the company's own document becomes the plaintiff's best exhibit.
Exposure: thick files that prove attendance and thin files that prove nothing about performance.
Exposure: wage-and-hour claims are the most common and most quantifiable claim class for shops this size.
Exposure: inconsistent treatment across crews is the raw material of discrimination claims.
Keep doing: this foundation is why the fixes above are very achievable.
| # | Action | Owner | Window | Investment band |
|---|---|---|---|---|
| 1 | I-9 separation and self-audit | Office manager + advisor | Days 1–30 | Internal time |
| 2 | Corrective action record adopted; supervisors briefed | Owner + advisor | Days 1–30 | Internal time |
| 3 | Exempt classification review, two roles | Advisor + counsel as needed | Days 30–60 | $1,000–$2,000 |
| 4 | Interim policy memo correcting the two contradictions | Advisor | Days 30–60 | Included in advisory |
| 5 | Full handbook rebuild with acknowledgment cycle | Advisor | Days 60–120 | $3,500–$5,000 |
| 6 | Supervisor documentation training + coaching plan for flagged supervisor | Advisor | Days 60–120 | $1,500–$2,500 |
| 7 | File remediation: acknowledgments, job descriptions, discipline records | Office manager, advisor QA | Days 90–180 | Internal time + QA |
Bands are planning figures for a 48-employee organization; each item is quoted as a fixed fee before work begins. Nothing on this list is required to be purchased from Faulkner HR Solutions.
Basis of review: leadership interviews (owner, office manager, two supervisors), handbook and policy review, a 12-file personnel sample, payroll classification summary, and supervisor workflow walkthrough. Findings reflect conditions observed during the review period. This report is HR consulting, not legal advice, and no attorney-client relationship is created; matters flagged for counsel should be reviewed by qualified employment counsel. Personnel details are summarized to protect individual privacy.
The report stands on its own — take it and run the roadmap internally. Most clients keep senior judgment behind the fixes with a monthly retainer, priced per employee with published minimums.
At this client's 48 employees: Senior HR Guardrail $1,920/mo ($40 per employee) · Strategic HR Partner $3,360/mo ($70 per employee)
Move into a Strategic or Executive retainer within 14 days of your report and the $2,500 diagnostic fee is credited toward the first month.