The following is an excerpt from our monthly newsletter sent by Will Fleming, President of GSS.

I recently read a McKinsey article that included a poll which listed “uncaring leaders” as the number one reason people were leaving their jobs without securing new positions.

I know our clients care deeply about their businesses. They’re entrepreneurs, after all. These aren’t hobbies or side hustles, these are livelihoods. The stakes couldn’t be higher, which begs the question:

Why do employees feel that leadership doesn’t care?

Restaurateurs have just endured the most challenging two-year stretch in the industry’s history, creating major distractions.

By their very nature, restaurants start with low operating leverage, or high variable costs. But still not all restaurants are the same. Some restaurants and concepts just have more EBITDA or margin. What is different about these businesses?

The pandemic led to restrictions, labor shortages, and inflation. It’s been a lot to juggle, and it’s put a strain on leadership.

Given all this turbulence, it’s only natural that owners might seem detached. Considering the work needed to rebuild and maintain a new workforce, now is no time to be distracted by negative stressors.

What you can do about it,

The McKinsey article mentions a few helpful solutions, such as reworking compensation packages (offering a cleaning service instead of a gym membership) and focusing on culture. But these are merely table stakes. It isn’t enough to simply change compensation flippantly and expect real change.

Talk to your team. Find out what is important to them. But don’t stop there…

It’s not enough to parrot the employees’ views. Show you care by making real changes based on their feedback. Talk about future plans and get them excited about that future.

But more than this, you’ll need to make sure you, as the business owner and leader, are knowledgeable about what your options are. Get a fuller understanding of where you stand financially. Build out a budget that fits the strategic vision you are building with your team’s feedback.

Get a view beyond the short-term.

If you would like some help in doing the planning and forecasting necessary to get there, don’t hesitate to reach out. Thinking strategically about how to solve problems is what we do, and we’d be happy to help.