Research: Hospitality Operators Falling Behind As Staff Wellbeing Crisis Grows

More than two million UK hospitality workers are repor ting declining mental health, because of money worries, according to a new repor t from financial inclusion exper ts and campaigners The latest State of Financial Wellbeing index - one of the UK’s largest studies on the financial health and wellbeing of the workforce - found that hospitality workers are among the UK s most financially stressed, but their employers are lagging behind other industries in stepping in to provide suppor t

Compiled by financial wellbeing exper ts at Wagestream, with input from leading bodies and exper ts such as Money and Pensions Ser vice , StepChange and the Work Foundation, the State of Financial Wellbeing research programme benchmarks the views and actions of 10,000 workers and 1,000 employers across the UK Launched in 2021, the programme is designed to improve understanding of the blockers and drivers of workers’ financial wellbeing

The latest index State of Financial Wellbeing: Hospitality Outlook 2023 highlights a financial stress understanding gap between UK hospitality workers and their employers: • 87% of hospitality workers’ mental health is worsening, due to money worries • 67% have cut back on their spending, and 30% used savings to make ends meet • 42% have missed a bill due to the cost of living crisis56% more likely than the rest of the workforce • 21% are struggling to focus at work, as a result - 31% higher than the rest of the workforce 30% worr y about money ever y day - but just 1% of employers realise it 14% have £0 in savings - but just 1% of employers realise itThere are signs that hospitality operators are taking steps to close the gap Three quar ters (76%) had introduced at least one new financial benefit to staff last year with the most common being educational workshops health cash plans and flexible pay Overall 57% of hospitality employers focused more on the issue as a response to the cost of living crisis - though that is a 20% decrease on the average across other industries

The findings see exper ts now calling on employers and government to act urgently with fur ther measures to reverse the trend - from suppor t packages in the shor t-term, to improving workers’ rights and suppor t structure in the long-term In par ticular, the repor t recommends that hospitality employers look to improve the security of work provided to workers

Ben Harrison, Director for The Work Foundation at Lancaster University, explains: “While millions more people may be in employment, the quality and security of jobs they are in often means they are unable to make ends meet It will be acutely worse for the six million people in the UK who are in severely insecure work, and already face low pay and uncer tain hours

Sarah Porretta - Propositions, Insights and External Engagement Director at the Money and Pensions Ser vice , adds: “it’s vital that many more employers respond positively to these findings, by seeking ways to close the gap between their employees’ need for better financial wellbeing suppor t in the workplace , and employers’ perception of what these needs are ”

With record levels of vacancies in the hospitality sector, the repor t recommends a number of actions employers can take to over take other industries on wellbeing suppor t and win in the war for talent In par ticular it emphasises a shift in thinking on the issue of pay - with hospitality workers 13% less likely to have asked for a pay rise , but around 10% more likely to say increased hours/shifts would help them It recommends employers build their pay strateg y around the ‘ new dynamics of pay ’ :

• Pay Secur ity - working and earning enough, to fulfil financial ob igations shor t-term

• Pay Autonomy - c hoice over hour s and pay c yc le , in order to live with dignity

• Pay Potential - the total amount of compensation, beyond base salar y

• Pay Growth - oppor tunities to move up a pay grade , and increase Pay Potential

Emily Trant, Head of Impact and Inclusion at Wagestream, comments: “Our latest State of Financial Wellbeing index highlights the two things hospitality workers want most: more predictable income , and the ability to choose their own pay cycle Ever y hospitality operator is in a war for talent - and if they are serious about winning, these are the new dynamics of pay they should be building their people strateg y around By doing so they will see a huge swing in recruitment, retention and shift uptake - which are key foundations for success in the current environment