Absenteeism costs hospitality £305m annually

Recent research conducted by the LTC (Licensed Trade Charity) and KAM reveals that absenteeism is costing the hospitality industry £305m a year, with nearly half of all sick days linked to poor mental wellbeing.

​On average, employees in the sector take three sick days (or 24 hours) over a year, contributing to a significant loss in productivity and revenue.

However, as Chris Welham, CEO at LTC, points out, the LTC Wellbeing at Work Report highlights more than lost revenue: "While the increasing financial pressures on hospitality businesses are well documented, LTC wants to bring to life the impact on people, teams, and lives outside of work.

“Since last October, we’ve seen a 63% increase in calls to our helpline, with the highest number of calls on record in January 2025. Mental health and financial challenges are the most common personal challenges facing people in our sector – and we need to work together to support our people.”

A spotlight on wellbeing

The report highlights the strong correlation between employee absenteeism and wellbeing, with 92% of employees agreeing that team wellbeing impacts overall productivity and service quality in their workplace. Those who feel stressed or overwhelmed at work take more sick days than those who don’t, and productivity is likely to be lower.

The report also highlights that a staggering 44 additional days are estimated to be lost for every employee working while in poor mental or physical health, known as 'presenteeism', adding a further 45.7m days in lost productivity for the sector.

Encouragingly, employees are open to assistance and training, believing that improved wellbeing could positively affect staff retention and morale by 73%, and customer service quality by 65%.

A host of new and improved services were unveiled at LTC’s inaugural Wellbeing Conference (2 April), including: a new Wellbeing Calculator to help employers measure the costs of poor health and wellbeing for hospitality businesses; a new online Employee Assistance Programme, with over 6,500 resources including Live Chat, counselling and information sources; and a reimagined brand to launchpad the services and help the charity connect with more people in the sector.

Welham continues: “For over two hundred years, LTC has been helping everyone in the licensed hospitality community thrive at work, and live well, every day. So, we’re using the platform of our first Wellbeing Conference to highlight the scale of the challenge but also reassure people that we can help.

“Our services and support are evolving to reflect the changing needs of our licensed hospitality community and are for the benefit of employees and employers. The research tells us that employees want more support at work, and we know employers can gain an estimated 5:1 return across retention, productivity and employee engagement for every £1 invested in an Employee Assistance programme.

“At a time when the sector is already facing significant financial challenges, we can help businesses to reduce lost productivity and associated costs – and, as importantly, support good people who may be facing tough times. Good health and wellbeing support can be the difference between someone exiting the sector or transforming their life and unleashing their potential – and we’re here to help.”

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