The restaurant industry has a labor shortage problem. That is certainly not breaking news. Employee engagement is at an 11-year low. That might surprise some folks.

Gusto founder/CEO Nate Hybl said this conversation about employees is long overdue.

The bigger companies are already focusing more on the employee proposition, but smaller brands need to make people development a part of their budget, Hybl added. He suggested taking 1-2% off the topline to invest in people.

Hybl said acknowledging and understanding the Gen Z mindset of work/life balance and diversity and inclusion are more important than they’ve ever been, in fact, he added that the pandemic changed the employee mindset and gave more leverage to hourly workers.