A new year is creeping up on us again, bringing fresh opportunities—and challenges—for restaurant operators. With so much already on your year-end plates, how can you find the time to lay the groundwork for team and business success in 2025?
Below, I’ve outlined nine key HR and payroll items to prioritize over the coming weeks that will also start next year off right. From updating policies to gearing up for tax season, these steps will enhance your compliance and position your restaurant for sustained growth.
1. Update Your Employee Handbook
Your employee handbook sets the tone for your culture by establishing expectations and aligning your team toward a common goal and vision.
Focus on:
- Emerging Regulations: Revise the handbook to include new laws effective in 2025, such as minimum wage adjustments, paid leave requirements, or other regulatory updates.
- Clarifying Policies: Revisit key policies like attendance, performance, and conduct to ensure they’re clear, fair, and aligned with your restaurant’s culture and goals.
- Communicating Changes: Share changes in team meetings or one-on-ones to make sure everyone understands and has easy access to the updated version.
Bonus Tip: Structure your handbook around the employee lifecycle, covering company culture and recruitment through performance management and termination to ensure a clear, easy-to-follow guide for every stage of the employee experience.
2. Simplify Health Insurance Open Enrollment
Health insurance is one of the most valuable benefits you offer, so make open enrollment a central, streamlined year-end activity.
Focus on:
- Starting Early: Work with your benefits provider to set up open enrollment well before year-end and provide employees with easy-to-read guides and clear deadlines.
- Encouraging Participation: Host brief, informal sessions to explain options, empowering your team to make confident decisions for themselves and their families.
- Budgeting Smart: Review your benefits costs and the financial impact of anticipated changes so you can set realistic financial expectations for 2025.
Bonus Tip: Create a simple FAQ document to address common employee questions about coverage options.
3. Optimize Payroll
Payroll represents your employees’ livelihood and deserves a closer look for accuracy.
Focus on:
- Verifying Pay Rates: Confirm all employees’ wages comply with 2025 minimum wage and overtime regulations, adjusting rates for tipped employees and salaried managers as needed.
- Auditing Classifications: Double-check exempt versus nonexempt statuses for all employees to avoid costly fines and incorrect paychecks and tax withholdings.
- Reviewing Deductions: Make sure benefits, garnishments, taxes, and other payroll deductions are accurate before tax season.
Bonus Tip: Set a recurring calendar reminder to conduct quarterly payroll audits in 2025 so you can catch discrepancies even earlier.
4. Strengthen Recruitment and Retention Efforts
The labor market remains highly competitive, making proactive recruitment and retention strategies top priorities.
Focus on:
- Hiring for Culture Fit: Seek candidates who align with your restaurant’s values by emphasizing character and attitude over experience when interviewing.
- Streamlining Onboarding: Simplify your onboarding process with clear expectations, training schedules, and a welcoming introduction to your workplace culture.
- Recognizing and Rewarding: Celebrate employees who’ve excelled this year with bonuses, shoutouts, or perks.
Bonus Tip: If you don’t already have one, consider launching an employee referral program that offers incentives, such as free meals or company merchandise, when a referred candidate is successfully hired and stays with the team.
5. Prepare for Labor Law Changes
Stay ahead of—and compliant with—upcoming labor law changes.
Focus on:
- Identifying the Laws: Familiarize yourself with the ins and outs of upcoming regulations, including wage laws, paid sick leave, and scheduling rules.
- Updating Labor Law Posters: Hang the latest posters in prominent employee areas.
- Scheduling Training: Plan mandatory training for harassment prevention, safety, or customer service if required by law or beneficial for your operations.
Bonus Tip: Sign up for industry alerts to stay informed about proposed and future legislative changes.
6. Evaluate Scheduling and Labor Costs
Efficient scheduling keeps labor costs in check.
Focus on:
- Using Scheduling Tools: Scheduling software can align employee shifts with sales patterns, optimize labor costs, and improve team and customer satisfaction.
- Planning for Seasonal Variations: Use historical sales data to anticipate staffing needs, scaling back hours in slower months or cross-training staff to handle multiple roles.
Bonus Tip: Survey your team about preferred shifts to reduce scheduling conflicts.
7. Boost Employee Engagement and Communication
A happy, engaged team is the backbone of great service.
Focus on:
- Conducting Year-End Check-Ins: Host informal one-on-ones to learn more about employees’ experiences and challenges over the past year and their future goals so you can support their success.
- Setting Clear Goals: Collaborate with your team to set realistic goals for 2025, like improving service speed or increasing average ticket size.
- Keeping Channels Open: Use group chats, breakroom whiteboards, or regular meetings to keep communication flowing.
Bonus Tip: End group meetings with a question like, “What’s one thing we can experiment with next month (or quarter)?” to spark ideas for ongoing improvement.
8. Audit Workers’ Compensation and Safety Practices
A safe workplace is nonnegotiable and essential for team morale and operational efficiency.
Focus on:
- Reviewing Safety Protocols: Ensure all staff understand emergency exit locations, proper equipment handling, and current food safety standards.
- Analyzing Claims: Review workers’ compensation claims from the past year to spot trends and adjust training to prevent similar incidents.
Bonus Tip: Celebrate months without accidents to reinforce a safety-first culture.
9. Plan for Tax Season
Tax season can feel daunting, but preparation now makes it seamless later.
Focus on:
- Checking Tax Forms: Verify employee and contractor data in your payroll system, ensuring the accuracy of W-2 and 1099 tax forms.
- Meeting Filing Deadlines: Submit W-2s and 1099s by January 31 to avoid penalties.
- Reviewing Unemployment Tax Rates: Stay updated on tax rate changes and budget for them in 2025.
Bonus Tip: Meet with your accountant or payroll provider before year-end to confirm you’re on track to meet tax-related deadlines.
Set the Stage for Success in 2025
2025 is your chance to build an even stronger restaurant team and operation. Start today with these HR, payroll, and employee-focused strategies to maintain compliance, improve engagement, and drive growth. The effort you invest now will pay off with smoother processes, happier employees, and better performance in the year ahead.
