OPINION: Cutting wellbeing is costing hospitality

Licensed Trade Charity CEO Chris Welham Feb 2026
Absenteeism, presenteeism and employee welfare: Licensed Trade Charity CEO Chris Welham (Licensed Trade Charity (LTC))

With hospitality under growing pressure and margins tighter than ever, cutting back on wellbeing can feel like a way to reduce costs – but the evidence shows it’s a costly mistake.

As the Licensed Trade Charity (LTC) prepares to launch new research, I have looked at the real impact of absenteeism, presenteeism and employee welfare, and why investing in wellbeing is essential for building a sustainable industry.

Hospitality is one of the most exciting and rewarding industries to be part of. It offers fast‑paced careers, real progression opportunities, and a unique sense of community that’s hard to find anywhere else. But there’s no denying that this is a particularly tough time for its people.

Operators are navigating increased cost pressures while stretched teams work long, unsociable hours in demanding environments. Margins are tight, and every investment decision feels under scrutiny. It can therefore be tempting to view staff wellbeing as a topic to revisit when conditions improve.

Greater drain

But the reality is that when times are hardest, this is exactly when we need to be investing in our people. Cutting back on wellbeing support doesn’t save money – it actually costs businesses far more in the long run. Our research with KAM Insight last year revealed that nearly half of all sick days are linked to poor mental wellbeing, and that absenteeism costs the hospitality industry a staggering £305m annually[1].

But it’s not just the days employees are off sick that affect the bottom line. Presenteeism – when people are physically at work but not operating at full capacity due to poor mental or physical health – is arguably an even greater drain on performance. 44 additional days are estimated to be lost annually for each employee working while in poor mental or physical health, adding a further 45.7m days in lost productivity[2].

Our latest research shows that the sector is still facing these challenges and more, perhaps not unsurprisingly given events over the last year. The new LTC Wellbeing at Work Research Report with KAM Insight, launching at this year’s Wellbeing Conference on 6 May, confirms presenteeism continues to be a major factor impacting people and performance in hospitality.

Last year, we reported that the top three issues potentially leading to presenteeism were related to mental health, finances, and work1. This year, what we’re seeing in particular is a rise in employees taking work stress home with them, impacting work-life balance, productivity, and sleep – with sleep emerging as a new top factor affecting employee wellbeing this year[3].

Time to invest

While reducing wellbeing support may feel like a short‑term saving, 73% of employers and employees agree that improving team wellbeing would have a significant positive impact on staff retention1 – however, just 27% of pub and bar employees are currently ‘very satisfied’ with the level of wellbeing support currently available in their workplace1.

The challenges aren’t going away and the decisions we make now will shape the long‑term sustainability of our workforce and industry. I believe now is the time to invest in our people to build and retain hospitality teams that feel empowered, motivated, and able to bring their best selves to work.

That’s why I’d encourage operators and industry leaders to join us at the Ham Yard Hotel next month – we’ll be sharing our latest insights and resources alongside expert‑led discussions and panel sessions to help operators build a wellbeing toolkit for colleagues.

I hope to see you there.

[1] The LTC Wellbeing at Work Report – LTC & KAM Insight, March 2025

[2] IPPR, Healthy Industry, Prosperous Economy,’ July 2024

[3] The LTC Wellbeing at Work Report – LTC & KAM Insight, 2026

  • The LTC has been helping licensed trade people and their families for more than 200 years, providing practical advice, mental and physical wellbeing support, and financial grants. Support is available via the website, Wellbeing Platform, 24-hour helpline, and Employee Assistance Programme, empowering people to build confidence, resilience, and take action to live well.
  • LTC’s free 24/7 helpline is available on 0808 801 0550.