25 Years Strong: The Journey of Stratus HR

In December of 1999, John and Michelyn Farnsworth started a Professional Employer Organization (PEO) now called Stratus HR. While Michelyn had already owned and sold a successful PEO and was ready for something new, John saw a real need in the industry that he could not let go. 

As Stratus HR celebrates 25 years of success, we sit down with John to reflect on the lessons he has learned from 25 years of building and running a thriving business with a winning company culture. 

What inspired you to start the company, and how has your vision evolved over the past 25 years? 

“Michelyn is from the industry. It may have been the last argument I won, but it felt like we could help. I could see inefficiencies that plagued the employee lifecycle and realized there was so much waste. I knew we could streamline processes to make employers more efficient — but I was clueless. I didn’t even know what a 941 was. But the frustrations sparked an idea that there had to be a better way.  

Over the years, our vision evolved from fixing inefficiencies to building solutions that help employers not only save time but also create meaningful workplace experiences.” 

What are some of the most significant milestones or achievements in the company’s history? 

"Every time we hit a milestone, it’s easy to look back and think it’s not much. There’s never been a dramatic spike, but it’s more like a steady climb. It’s almost like trying to figure out how not to build a light bulb — we’ve tried every trick in the book.  

Honestly, it feels like we’re just getting to the significant milestones now. It’s been a journey of constant learning and adapting.” 

How has the industry changed in the last 25 years, and how has your company adapted? 

“The industry has shifted from being an insurance savings avenue to real HR consulting. Back in the day, the pitch was, ‘Come with us, and we’ll save you money!’ But today, it’s about delivering real value.  

Business owners have also become more astute about the true costs and benefits of being great employers. We’ve adapted by focusing on this value-driven approach, providing solutions that go beyond saving money and truly improve the workplace.” 

What has been the key to maintaining a strong and consistent company culture over the years? 

“Consistency, trust, and transparency have been critical. Whether it’s sharing wins or losses, we ensure everyone feels valued and understands that their work matters. It’s about creating a space where people know they’re cared for and part of something meaningful.” 

How have you managed to build and sustain long-term relationships with your clients? 

"Long-term relationships come from doing the job well, standing behind our work, and owning our mistakes. We’ve never hidden behind contracts or pointed fingers when things went wrong.  

Trust is built through action, not just words, and that’s been a cornerstone of our client relationships.” 

What innovative strategies or practices have contributed to the company’s longevity and growth? 

“One of our key innovations has been solving specific problems for clients who needed it most. For example, we tackled high turnover in service companies, creating efficient recruiting and onboarding processes that reduced risks. This problem-solving approach has been a driving force in our growth.” 

Was there a specific moment or decision that you feel was a turning point for the company’s success? 

“Absolutely. In the spring of 2012, I realized our office culture was fragmented, and I was exhausted trying to get everyone on the same page. I wasn’t leading effectively; I was telling people what to do.  

I decided to focus on building the right team and explaining the ‘why’ behind our goals. This shift in leadership transformed our culture and ultimately made me a better leader.” 

How has feedback influenced your company’s direction or operations over the years? 

“Feedback has been everything. It’s why we developed SplashTrack and carved out our niche in helping clients manage high turnover and rapid growth. Our entire direction stems from listening to clients’ pain points and building solutions to address them.” 

What legacy do you hope your company leaves behind, and how do you feel it has impacted the community or industry? 

“I’d love for our legacy to be that our employees’ friends and families wish they had worked here. That kind of impact speaks volumes.  

As for the community, we’re not the biggest player in the industry, but we’ve definitely made our competitors take notice. While we might not have made a massive impact yet, we’re proud of the respect we’ve earned.” 

As you celebrate 25 years, what are your goals and aspirations for the next 25 years? 

“Looking ahead, my goal is to focus on our Net Promoter Score (NPS), which spells out how well we’re listening and implementing client feedback. Our business was built around their evolving needs, and that won’t change. We have a lot of flexibility that other PEOs don’t have by owning our own software; we send requests directly to our development team that sits across the aisle from our HR team. It’s much easier to push off an email from someone several states away than it is from somebody you see in the breakroom.  

Honestly, I’m excited about the future. Growth is important, but it has to be done the right way, our way, while having fun along the journey.” 

For more information on how to successfully grow your business while strengthening your company’s culture, please book a free consultation and our team will contact you shortly.