Fractional HR and Executive Support Overview

Speaker 1 0:30

So I'm Lori Wimmer . I am the owner and fractional CHRO for Simplified HR , so we are a fractional HR business .

Speaker 2 0:39

Okay , and tell me how you serve your clients .

Speaker 1 0:43

So we partner with small business owners to provide them with HR support . Many times the clients that we work with are not quite in a position to budget a full-time HR team or a full-time HR manager somebody of that sense budget a full-time HR team or a full-time HR manager somebody of that sense . And so we come in and be able to provide them with the support that they need with building out employee handbooks , employee policies , hiring all the things that they need to have done at a fraction of the cost .

Speaker 2 1:07

Yeah , and I'm just now starting to learn about fractional executives . Describe to me what that is and how it's beneficial for businesses .

Speaker 1 1:16

So fractional executives again , are really primarily for businesses that don't have the resources , either financially or just the time capacity , to be able to hire someone in as an executive in a certain position for their business . So some sort of executive role . So many times businesses that truly need that support will look to fractional support help so that they don't have that added expense of , or trying to find somebody in a profession that they're not really familiar with . For example , if I were hiring somebody in a marketing management role , I'm not very , you know , knowledgeable of marketing , so for me even knowing what I would need to hire would be difficult . So hiring somebody in a fractional role will be able to be more of a strategic support for the business as well .

Speaker 1 2:06

Okay , and how did you get into this ? Oh , my goodness , so 18 years of HR is really how that started . So I started in a actually a recruiting firm that was . It was a very small business in the Midwest and we expanded quite drastically over 18 years . So we started about a $4 million business and then expanded up into almost a billion dollar business .

Speaker 1 2:33

But after 18 years in that specific role and COVID hit right , I think COVID happens . That's really all I have to say , covid happened . So COVID happened and it really changed my passion for what I wanted to do long-term . So I had all of this experience and knowledge and I felt like that there was a gap with a lot of businesses . They would outsource for hiring , but they still missed the onboarding piece . Or they would outsource for benefits or somebody to consult with them , but they still had to take the time to implement in their business . Okay , and that gap was really what I recognized and I felt is a massive need . There's such a great audience for small business owners out there to you know , to acquire , to be able to purchase this type of program , and so that's really why I decided to go into this , this business , into this business . What ?

Speaker 2 3:31

do you find ? So what do you find most rewarding about what you do ?

Speaker 1 3:35

When I see my clients succeed . So I have had so many success stories from my clients that just when I hear them it really just gives me chill bumps . It actually just really empowers me to push forward , even when days are really hard , because some days are tougher than others . Some days are great , some days are definitely difficult . For example , I have a client that just recently had a number of her team exit on her very randomly and just unexpectedly . So she was really left with a lot of responsibility on her plate and a lot of need for hiring , a lot of need for just strategic support and knowing what the next step should be , and I was able to jump in and help her identify okay , this is the next step , these are the positions we probably need to fill immediately . Actually find those people for her , do the onboarding . So you're doing the recruiting , doing everything .

Speaker 2 4:29

Yeah .

Speaker 1 4:29

So we are truly taking a massive amount of work off of our clients' plates . And with that being said , you know she now that was probably four months ago when that happened and the entire business has changed . So she at one point felt like she didn't want to walk into the business , like she just felt so stressed out , the culture wasn't great , and now that she has a new team in place and she's had an opportunity to really step back and we started with a clean slate , it's night and day difference . She's happy , the team is happy . We have people that really are working for the business versus just working for a paycheck .

Speaker 2 5:05

Right yeah .

Speaker 1 5:06

That's what drives me , yeah .

Speaker 2 5:07

And that's hard to find these days People that are willing to put their full self in and not just be there from nine to five . Exactly Right , actually be invested in the business .

Speaker 1 5:24

I think many times people don't . They kind of cloud the judgment when it comes from a work-life balance perspective . So , for example , you know they think , well , if I come in and I work my nine to five and then after that I'm just done and that's completely fine . But you still need to have that dedication to the business and the business owner . And I think you know many times that it does happen . And even in the onboarding or screening process we don't share that level of commitment that we want from our team . And it doesn't mean working 12 hour shifts . It means when you're there for eight hour shifts , that you really are thinking of the business . You're thinking of the values and the mission of the business , versus just there to do your job and then leave Right .

Speaker 2 6:00

Yeah , take me back a little bit about . I know you said you were working for a company and decided to go out on your own , but what kind of got you into HR to begin with ? It was this something you kind of knew you wanted to do in college , or what was the path it did .

Speaker 1 6:15

Actually , it was a position that I just kind of fell into , to be honest with you , in my early 20s . So I started in more of a business development and sales role . So that was kind of you know . My direction I wanted to go into was more business development , just being able to have a lot of independence , a lot of freedom and a lot of opportunity to make income with no limits . And I joined the firm that I was with for 18 years in their sales capacity , and after about six months of working with them I quickly found that I was really drawn to employment law .

Speaker 1 6:52

I loved working with people , helping them find jobs . I enjoyed working with my clients , and so I was able to really kind of get a taste of it before I decided to fully go into HR . So I had a little bit of everything , a little you know from the sales , from hiring , client success and fulfillment and I realized that the HR was really what fueled my fire , so to speak . So I decided at that point that I wanted to pursue that as a full-time career , really focus on building teams , focus on building culture and making sure that my teams are revenue generators . So that's another big piece of my business is that teams should generate more revenue than you're putting out right , so they should be bringing more money back into the business . And how do you measure that ? You know those are questions that a lot of business owners don't know how to measure .

Speaker 2 7:44

Right , absolutely , and how do you help them kind of realize the importance of that ?

Speaker 1 7:50

So I think the number one way is to outline where they're at now . So many times I work with a lot of different industries . I also work with a lot of med spas . Ironically , I'm not really sure how that kind of evolved , but you know , I feel like they're on the rise .

Speaker 1 8:05

There's just a lot of med spas there are and it's really making me recognize my need to visit them more too , follow them on socials . But , that being said , you know I work with a lot of med spas and identifying what their current pay structure is for their team and what revenue they're bringing to the business , and you know what that return on the investment is for the business owner . Because you know , truly , you know , we can't break even and we certainly can't take a loss right . So I come in and we identify metrics that we can measure with their team . So when I say that , though , a lot of times people will say , oh , I don't want to micromanage , I don't want to . You know , I don't want to .

Speaker 1 8:46

When I start putting numbers on things , people get uncomfortable , and I think that my approach to it is a little bit different . I think that you need team buy-in . You need for them to understand the reason for the tracking , and it's not for , you know , to be able to reprimand somebody . It's to be able to really understand where they're succeeding and how can we support them to better perform their job or how to be more successful in their job . I don't instinctively think people come in with the thought process that they don't want to do a good job . Right , right , they want to come in and they do want to do a really good job .

Speaker 1 9:22

The desire is there Exactly , but sometimes they don't know what good looks like in that role , right . So so we help identify that Right . And then we get the team buy-in , we talk to them about what their metrics are , where they're currently at , and then we do talk about industry standards . So in each business obviously there's a standard and we just start tracking . So it's not about okay , you're not hitting the mark , then we're going to put you on a warning . It's about tracking and seeing . Are we seeing improvement ? Are we seeing stagnation ? Are we seeing a decline ? And then from there we create a plan of action to really help grow the business and grow the team .

Speaker 2 10:01

Yeah , and what companies like ? What's your ideal client ? What kind of companies are you catering to ? You said you've had a lot of med spas . Yes , Is there certain , like you know , not super large companies , not super small companies . Is there like a certain niche that you look for there ?

Speaker 1 10:15

is yes . So typically my employers are between two to maybe 15 employees . Typically they generate anywhere from , you know , maybe $250,000 a year up to maybe 2 million a year , if you are kind of over that threshold . Again , it varies based on the business right . There are some businesses . Their revenue may be much higher but their team's still going to remain small , so they're still a good fit for our services . But if they get more than 15 employees , typically they may want somebody full-time , somebody who they can hire in-house . I had a client once ask me you know well , when my business gets to that point , are you still going to be able to help me ? And I said absolutely , you know , I can help you .

Speaker 1 10:58

But when you do get to a point where you need someone in-house , it's my job to be able to transition and help you find that person and to be able to eventually go off on your own right and have that in-house and pass things over , exactly , and over to them , exactly .

Speaker 2 11:12

Yeah , what challenges are you seeing in the HR world ? These days .

Speaker 1 11:21

So the workforce is definitely the number one challenge . I think I'm finding employees and team members that are committed to the business , um , that have the drive and desire that the business owner has , and it's tough to match that because when we open a business we have that drive and passion really , because you know it's our business , it's our baby , right , and when you hire somebody in it's not their baby , so we can't expect that from your team exactly . But having the outline , having the understanding and you know what your mission and vision truly are , makes a world of difference . So many times it's just covered in a handbook , right ? It's just like oh we just this is our values .

Speaker 1 11:58

These are , you know , and it's never exactly , yeah , and nobody reads it right , nobody takes it home .

Speaker 1 12:06

So for me , you know , I also set with my clients a standard to do some weekly meetings and actually use those values in your weekly meetings so that you're doing a team call out , you're saying , hey , you were a great team player this week . That's one of our key values . Thank you so much for doing this last week . That really displayed our values . So it's about just setting that standard within the business . But the challenge again is to have people that have that buy-in , and so you have to have compassion . Challenge again is to have people that have that buy-in , and so you have to have compassion . You have to really build just the rapport with your team and be able to communicate with them .

Speaker 2 12:41

Yeah , what are you doing for advertising and marketing these days ? What's working for you ? What's not working for ?

Speaker 1 12:46

you . So for advertising , marketing , really social media probably my number one source . So we definitely use social media daily . We do updates daily . Referrals are also another big marketing piece for us , so that is probably Same with us .

Speaker 2 13:06

We love our referrals .

Speaker 1 13:07

Yes , I would say probably 80% of my clients are referrals . So it's just , you know , when you work with somebody , you provide them with great service and support . They want to tell their friends and family . So that's where a lot of our business comes from . But other than that , social media is really the number one source .

Remote HR Consulting in US & Canada

Speaker 2 13:23

Yeah , and you told me earlier a little bit about the areas that you serve . It's not just local . No , tell me a little bit about where you , how you're finding your clients , where they're located and how you can help them remotely .

Speaker 1 13:35

So we really work with anyone in within the United States and Canada . So we technically can work in Canada as well and employment laws are a little bit different in Canada but you know it's there's a lot of similarities as well . But we work with clients from Arizona up into Maine , new Jersey you know I've got Georgia , gosh , indiana they're anywhere is really where we can serve With 18 years of experience in HR and I'm also a member of the SHRM Society , which is for a human resources professional site where we have support from other HR professionals . So if it's a situation that I have not dealt with which 18 years ? I'm going to say I've dealt with a lot , but in 18 years you definitely experience a lot . But if there are situations that come up that maybe I want to call on a colleague , I have that additional support .

Speaker 1 14:24

But you know we serve remotely . So everything we don't need an office space in your building , we don't need equipment , we don't need any of those things . Really , what we need is just a little bit of your time to be able to identify what your goals are , and then we come in and we set the systems up . We set the structure up in place and get organization going for you . So it's all done remotely . Even our orientations with the team members are done remote .

Speaker 2 14:47

Yeah , so it's great that you can serve so many people in that aspect . Yeah , it's amazing . Where do you see this all going ? Where do you see your business and yourself going the next few years ?

Speaker 1 14:57

That's a great question and I don't know the exact answer to that . I think that it's evolving just every single day . It changes a little bit , in the sense that I see a lot of potential and I see a lot of I see for myself , probably , you know , obviously growing my team out . Additionally , I do have a team of HR consultants that work with me as well to support my clients as we continue to grow , but probably just to continue my building of my business . You know I love to travel , so I definitely see a team that's going to be able to support me so that I can travel more as well , and then give them the flexibility to . You know , they have full flexibility being remote . So I want to have a really good environment where everybody feels happy , they feel fulfilled in their life , financially and personally .

Speaker 2 15:49

That's awesome , yeah , what advice do you have for business owners when they get to a certain point that they feel like they need to start outsourcing HR or accounting or whatever . What tips do you have to kind of help prioritize what they're going to outsource ? Absolutely so .

Speaker 1 16:06

I would say the tips that first I would say don't wait .

Speaker 1 16:09

If you are even in a position where you're a solopreneur and you feel like I probably will need to hire someone in six months , Don't wait until you're ready to hire , to outsource support . Many times people come to me and they say I have somebody starting next week and I don't have anything in place . I don't have a handbook , I don't have all the things in place that I need . And that's a tough spot to be in , because you definitely and not that we can't put those things together but to put together a system that's going to feel comfortable for the new hire takes a little bit of time . So , being able to really have a system set up so that their experience from day one is smooth , they feel comfortable Again , you know , if you put yourself in the position of an employee , you want to know that they expect you , that everything's set up and that they have a system in place for you to train .

Speaker 1 17:00

So I would say don't wait first . Second would be to make sure you have your mission and values really identified and again , it's one of those pieces that when you're opening a business and many times you may get , you know advice from people to say you know , create your business plan , and I think that's really important . But I think that the piece that's missing is truly living the mission and your values . So when you go to hire , you look at those values and you say , OK , these are the five things that I want in my team and when I'm interviewing . If one of those pieces is missing , then that's not the candidate for me .

Speaker 1 17:36

Right , because that's most likely going to be the reason you fire them , and nobody wants to do that . You know , unfortunately , in the years that I've been in this , we've had to do that , but it's not something anybody likes , even when somebody is super uncomfortable .

Speaker 1 17:51

And you feel , you know it's , even if they've done wrong , you still feel bad . So it's important to have those pieces in place . And then clarity Clarity is probably the other thing is being really clear with yourself with where you're at , being clear with where you're going , and then sharing that clarity with everybody involved . Right , and then , sharing that clarity with everybody involved . Organization and communication those are things that sometimes get put aside when you're busy building your business , because you need to generate revenue . That's the goal Get money in the door right , yes , absolutely .

Speaker 2 18:27

How important do you feel like the onboarding process is to employee retention ?

Speaker 1 18:31

Oh , absolutely . It's very , very important . I think that it sets the stage for the experience in general being able to just identify what are the first steps that they're going to learn in the job . You know what is , what does the organizational chart even look like ? You know , these are things that they need to know coming in , versus showing up on the first day and there's five faces that they have no idea who they are right , Maybe a computer that's not set up for them .

Speaker 2 18:56

There's just so many things and all these systems they're not used to . Yes .

Speaker 1 19:00

So you know , the orientation and the onboarding gives you an opportunity to introduce those things and pieces and it's like putting those puzzle pieces together . So , for example , when I do my orientation I may say you know , these are the programs you're going to use . I'll show them the programs that they use and then from there , you know , the first day they'll say , oh , I recognize that program . I remember you know Lori showed me this . Or you know they'll know lunches at noon or lunches at one 30 . And you know this is the owner of the business and this is the director of operations , and I recognize that face .

Speaker 2 19:33

Yeah , and bringing it all together Exactly . Director of operations and I recognize that face . Yeah , and bringing it all together . Yeah , as we kind of wrap up here , are there any words of advice you'd like to leave us with , or maybe just a life mantra that you live ?

Speaker 1 19:42

by oh my gosh . Well , I've kind of shared it a little bit , but I say clarity is kindness . That's probably my my number one thing that I share with all of my clients .

Speaker 2 19:49

I have not heard that before .

Speaker 1 19:50

Really it is so true , it is very , very accurate at every piece of your life . I think that being clear with people and it's difficult because I'm an empath so for me , I relate , I'm like , oh my gosh , like I don't want to hurt somebody's feelings . I , you know , I'm very cautious about what I say to people and I learned that many , many years ago that if I'm not transparent and I'm not upfront and I don't share with them , that it's not only affecting me but it's actually being unkind to them . Right ? So that's my piece of advice .

Entrepreneurial Procrastination and Seeking Help

Speaker 1 20:22

Otherwise , I say again don't wait . That's the biggest thing is we procrastinate and we know things need to happen . Just don't wait to the last minute . Ask for help . As an entrepreneur , we like to just take it all on our own shoulders and I think that it is . It's a necessity for some timeframe , but there comes a point where you know the wait's too much and you have to call out for help .

Speaker 2 20:46

Yes , and knowing when to do that , exactly and usually if you need it .

Speaker 1 20:49

You probably already waited a little too long , exactly A little too long , but not too late . Not too late .

Speaker 2 20:54

Yep , Well thank .