Room for Improvement: Addressing Employee Wellbeing Gaps in the Hospitality Industry

The hospitality industry operates on notoriously thin margins, where every dollar counts. Yet many employers overlook a significant cost driver: employee wellbeing gaps.

Erratic schedules, low wages and limited access to comprehensive benefits make it difficult for workers in restaurants, hotels and event venues to stay healthy. Many organizations still design health and wellbeing programs for management-level staff, while hourly and part-time employees — the people most exposed to injury and stress — often lack access.

Closing these wellbeing gaps is critical to controlling a hospitality organization’s total cost of risk and improving employee health and safety.

A cost driver hiding in plain sight

Hospitality work can be physically demanding and mentally taxing. Tired or sick workers may be tempted to take safety shortcuts or ignore hazards.

Financial stress adds another layer of risk. When employees are preoccupied with unpaid bills or can’t afford a doctor, they may not be focused on their work. When this happens, they’re more likely to make mistakes or lose patience with guests.

Wellbeing gaps also drive employee churn. The hospitality turnover rate hovers around 70%,¹ with around 5% of hospitality employees leaving their jobs each month, making it one of the highest churn rates of any U.S. industry.² Each departure costs thousands in recruitment, training and lost productivity.

If not addressed, hospitality companies face rising claims costs and eroding service quality. Companies with strong hospitality workforce wellbeing programs see 30% fewer workers’ compensation claims costs.³

How wellbeing investment reduces insurance cost

A workplace culture that prioritizes hospitality risk management and workforce wellbeing creates measurable benefits. Engaged, supported employees notice hazards before they become incidents — picking up items from floors, reporting potential risks to management and prioritizing guest safety. Disengaged or distracted employees, by contrast, are less likely to follow safety protocols or report hazards.

Lower turnover means employees gain deeper familiarity with safety systems and procedures. That experience leads to fewer errors and better loss histories, something underwriters value during renewal negotiations.

Strong wellbeing programs also reduce fraudulent or exaggerated workers’ comp claims. Employees who feel valued are more invested in their organizations’ success and less inclined to misuse benefits.

Turning wellbeing into an operational advantage

Effective hospitality workforce wellbeing programs can start small. A tiered “good, better, best” approach helps employers scale based on budget and readiness. Some begin with improving communication about existing benefits or ensuring employees understand how to access them. Others invest in digital platforms or coaching. Employers striving for the “best” create robust benefits to improve wellbeing.

Ultimately, there are several key areas hospitality employers should address to improve employee wellbeing:

• Mental health: Long hours and irregular shifts take a toll. Normalize use of Employee Assistance Programs (EAPs) and offer telehealth counseling to make behavioral health support accessible and stigma-free.
• Preventive care: Many hospital workers lack access to regular checkups. Partnering with community clinics, telemedicine or mobile health units can help employees address health issues before they become bigger. In higher-end properties, access to on-site spas or fitness facilities can serve as incentives for annual physicals.
• Financial wellbeing: Extend benefits to part-time and lower-wage workers through minimal essential coverage or supplemental plans to remove the financial burden of accessing care.
• Career development: Help employees view the organization as a place to grow, not just earn a paycheck. Predictable scheduling and transparent advancement opportunities can turn hourly jobs into steppingstones toward long-term careers.

A specialized hospitality broker can help organizations align hospitality risk management and workforce wellbeing with budget realities and underwriting expectations through benchmarking and various solutions ranging from injury-prevention protocols to low-cost wellbeing approaches that use existing resources.

For organizations just beginning their wellbeing journey, an experienced broker can facilitate candid conversations about whether current compensation and scheduling practices will deliver better employee wellbeing outcomes.

Contact HUB International’s hospitality insurance experts to learn more about closing wellbeing gaps and managing total cost of risk.

¹ OysterLink, “High Turnover in Hospitality 2025,” October 29, 2025.
² Bureau of Labor Statistics, “Job Openings and Labor Turnover Survey, Table 20,” accessed October 27, 2025.
³ National Library of Medicine, “Promoting Health and Wellbeing in the Workplace: A Unique Opportunity to Establish Primary and Extended Secondary Cardiovascular Risk Reduction Programs,” accessed October 28, 2025.