Over 2m hospitality workers suffering ‘declining mental health’

Over 2 million people who work in the hospitality sector are suffering from “declining mental health” as a result of the cost of living, according to the State of Financial Wellbeing index from Wagestream.

The index also found that 67% of hospitality staff have cut back on their spending with 30% having used savings to make ends meet. Furthermore, 42% have missed a bill due to the cost of living crisis.

As a result of this 21% of people are struggling to focus at work and 30% worry about money every day.

However, in response to this, three quarters of employers 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.

The findings see experts now calling on employers and government to act urgently with further measures to reverse the trend – from support packages in the short-term, to improving workers’ rights and support structure in the long-term.

The report has also called for pay strategy to be built around things like pay security, working and earning enough to fulfil financial obligations short-term, pay autonomy, choice over hours and pay cycle, opportunities to move up a pay grade and increase pay potential.

Emily Trant, head of impact and inclusion, said: “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.

“Every 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 strategy 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.”