Hospitality Sector Hit by £305m Annual Absenteeism Bill, Driven by Mental Health Struggles

Employee absenteeism is costing the licensed trade £305 million a year, according to new research from KAM and the Licensed Trade Charity (LTC). The findings reveal that hospitality workers take an average of three sick days annually, with nearly half linked to poor mental well-being.

The impact on businesses is significant, not just in lost productivity but also in service quality. An overwhelming 92% of employees surveyed said team well-being directly affects performance at work.

LTC chief executive Chris Welham highlighted the growing personal strain on staff: “Since last October, we’ve seen a 63% increase in calls to our helpline, with January 2025 seeing the highest number on record. Mental health and financial pressures are the most common issues we’re hearing about.”

The report calls on the industry to prioritise staff support. “We need to work together to support our people,” said Welham. “A healthy team is essential to a healthy business.”

As the sector faces ongoing financial pressures, the message is clear: looking after employees’ mental and financial well-being is critical to long-term success.