Why employee wellbeing in hospitality can no longer be an afterthought

At KAM, we’re in the business of listening – really listening – to the people working across the hospitality industry. From the pub floor to the kitchen pass to head office, we make it our mission to understand what truly matters to hospitality employees, and how their day-to-day realities affect both personal wellbeing and business performance. That’s how we can help operators turn real insight into meaningful action.

Our latest research, created in partnership with the Licensed Trade Charity (LTC), takes a deep dive into the current state of employee wellbeing at work across pubs, bars, and breweries in the UK. And while we explored many different areas – mental health, physical wellness, emotional support – one theme stood out loud and clear: a feeling of positive financial wellbeing is the foundation that everything else rests on. If we’re not getting that right, we’re building on sand.

So how are hospitality teams really doing?

In short? They’re struggling a bit. A significant 72% of hospitality employees said they’ve experienced personal challenges over the past 12 months. Perhaps unsurprisingly, financial worries are top of that list, alongside mental health issues, housing pressures, and family difficulties. It paints a picture of a workforce under strain, both inside and outside of the workplace.

And this isn’t just affecting the most junior roles. As one Hospitality People Director told us, “Financial wellbeing is definitely coming to the forefront… employees approach the business for short-term loans, travel cards or because their car’s broken and they can’t afford to fix it. And that’s not just entry-level roles; it’s happening in more senior positions too.”

There’s a clear connection between financial stress and declining mental wellbeing, and employers are beginning to feel the impact in the workplace. “The biggest thing that gets raised to us is mental health. Most of it not driven by work, actually, most of it driven by life, but that obviously impacts them at work and then we get the fallout of that in the workplace. It definitely affects productivity.”

Poor financial wellbeing is costing hospitality more than we realise

Let’s talk numbers. Mental wellbeing challenges played a part in 48% of all sick days in our sector last year. That’s nearly 1.5 million days lost, directly costing businesses over £146 million annually in wages alone. When you add in indirect costs – lost productivity, missed shifts, disruption to teams – the figure is even higher.

Now add the phenomenon of presenteeism into the mix: employees turning up for work, but operating at reduced capacity due to financial or emotional strain. Based on national estimates, that could equate to an eye-watering 45.7 million additional lost workdays in hospitality every year. And yet, most People Directors or Hospitality business owners we spoke to as part of the research aren’t currently tracking the impact of either sick days or presenteeism.

And we haven’t even touched on recruitment and retention. Operators are already facing staffing shortages, and unstable financial wellbeing only accelerates churn. One operator explained, “If we’ve got a GM or a kitchen manager that’s having a mental health struggle, it impacts on the team… We do find that those sites will have higher turnover issues. The team’s not as stable. It has a knock-on effect on the customer experience so likely lost revenue.”

The current employee wellbeing support isn’t always landing

To their credit, many employers are trying to support their teams. Around 55% of employees say their workplace offers an Employee Assistance Programme (EAP). However, fewer than half (49%) of employees say they’ve ever used it. And only 27% report feeling “very satisfied” with the level of support available for to support their financial wellbeing.

Yet, most businesses don’t currently track EAP usage or assess its return on investment – despite the fact that a well-run EAP can offer £5.20 back for every £1 invested, thanks to reduced absenteeism alone. On top of that, one in three employees has never been asked for feedback on their wellbeing needs. It’s a simple step that could make a huge difference.

While some hospitality businesses are ahead of the curve, introducing savings pots, partnering with financial wellbeing apps, or creating emergency funds, these practices are far from standard in our sector.

The message from our teams is clear: they’re open to more support, but it has to be relevant, accessible, and well-communicated. We heard repeated calls for financial literacy training, better signposting to resources like LTC, and the integration of wellbeing into induction and onboarding processes.

What can operators do next?

If you’re a hospitality People Director looking to create real change, here’s where to start:

First, talk to your teams. Ask them what’s working and what isn’t. Regular feedback loops build trust, and help you shape support that actually hits the mark.

Second, review your existing financial wellbeing offering. Is it clearly communicated? Is it practical? Is it being used? If not, what’s getting in the way?

Third, consider partnerships. Organisations like the Licensed Trade Charity offer specialist support, financial guidance, and emergency assistance that could be life-changing for your teams. In fact, more than 75% of hospitality employees say they’d be likely to contact LTC for help if they needed it.

And finally, measure what matters. If you’re not tracking the cost of poor employee wellbeing – from sick days to turnover – you’re missing the full picture.

In summary…

Financial wellbeing isn’t just about pay. It’s about stability, dignity, and the ability to plan for the future. When hospitality workers are supported in this way, they’re healthier, more focused, and more loyal. And that translates into better customer service, lower costs, and stronger business performance.

Or, as one employer said so perfectly: “If our employee wellbeing was better, we’d be better at serving our customers.”

Ready to take action?

Visit licensedtradecharity.org.uk to access free tools, guidance, and support for your teams. Or get in touch with KAM (hello@kaminsight.com) to chat about how you can use data and insight to build a happier, more resilient workforce.


Interested in understanding your category, consumers, customers or employees a little better? Take a look at other work we’ve done and get in touch to see how we can help you.

Katie Jenkins

Marketing Director at KAM, Katie has 20+ years experience working in research and insights for leading food and drink brands, supermarkets, retailers, pubs, bars and restaurants.