You can’t automate engagement: Why time, energy, and growth matter more than ever in the Hospitality Industry.
With operating costs on the rise and profit margins narrowing, the recent hike in National Insurance contributions is adding significant strain to already constrained payroll budgets. Amidst all this chaos, it is imperative that we don’t lose sight of what the hospitality industry is all about: people and connection.
Whilst efficiency may keep operations running, it is engagement that delivers the real hospitality we claim to value. You can’t automate warmth, presence, or genuine service. And if your people are disengaged, stretched too thin, or feel unseen, then there’s a high chance your guests will feel it too. Now more than ever, we must learn to invest time and energy into our people rather than cutting back on essential L&D programmes or team development initiatives.
Why engagement is essential
According to Hospitality Action’s Taking the Temperature report published in 2024, 76% of hospitality staff say they’ve experienced mental health issues in their careers. This is a significant rise from 64% in 2020 and 56% in 2018.
When asked what worries them the most, 60% of staff said work-life balance, 44% cited their mental health directly, and 42% were concerned about money. These are not just personal challenges. They are barriers that can limit high performance, connection, and growth across the industry.
At a time when staff wellbeing is already under pressure, many hospitality leaders are turning to systems, structures, and cost-saving efficiencies, with cutting staff costs often high on the list to remain competitively priced. In doing this, they risk overlooking the heart of our industry – our people. Hospitality is a human experience. Without genuine connection it becomes hollow. Cutting staff costs is not the answer, we need to invest in our teams, getting to know your team and understanding how they work is therefore key to maintain this sense of connection.
If you are not making the time to invest in your team and really get to know them, then you are not leading. You’re managing spreadsheets and not people.
Don’t let financial strain lead to cultural decline
In many hospitality businesses right now, the response to economic strain is reactive. Companies are freezing recruitment, trimming training budgets, automating where possible, and reducing ‘non-essentials’ like team lunches or engagement events. But these are not luxuries, they are the foundation of a strong culture.
As costs soar and National Insurance hikes put pressure on payrolls, it’s tempting to scale back on people-focused initiatives as areas to scale back. But you cannot strip this back and expect high-quality service to hold steady. Cutbacks that demoralise your team show up in slower service, fewer upsells, and disengaged interactions.
This is especially dangerous in a people facing business. Unlike industries that can absorb these new cutbacks without customer friction, hospitality is built on presence, care, and energy. When those go, so does loyalty from customers and teams.
What actionable engagement looks like.
Don’t wait around for the perfect conditions to invest in your team. Commit to engagement as a daily practice.
The everyday actions that can transform employee engagement:
Flexible scheduling that respects work-life balance: Prioritise restructuring rotas to consider commute times, family commitments, and social lives. It leads to better moral, fewer call-ins, and more team loyalty.
Wellbeing check-ins: Introducing regular wellness check-ins. By spotting signs of stress early, you can support team members before burnout takes hold, keeping your team happy, healthy, and performing at their best.
Onboarding with intention: Instead of quick-fire inductions, take the time to onboard people into your culture and team, not just compliance. It sets the tone for connection and long-term commitment from day one.
Career pathways and micro development: While much of L&D has moved online, in-person coaching and shadowing still play a crucial role. Micro-development opportunities give extra support where it’s needed most – helping individuals thrive and unlocking potential across your team.
These initiatives aren’t ‘extras’, they are essential to the infrastructure of engagement in the hospitality industry. Without them we can’t deliver the kind of service today’s guests and team members expect.
We can’t reverse NI hikes or eliminate the cost-of-living pressures. But we can build environments where people feel seen and safe, and where growth is possible, and good work is recognised. That’s what people stay for. That’s what delivers great hospitality.