Hospitality employee benefits in 2025: attract and retain talent 

When it comes to benefits for restaurant employees, a well-designed package will help you stand out amongst competitors when recruiting and help contribute to employee satisfaction, aiding retention. 

In this article, our hospitality recruitment specialists outline which benefits resonate the most with hospitality employees and how operators across the sector are delivering them. We’ll help you to highlight some of the changes you might want to make to your benefits offering to attract new employees and improve staff retention rates in your business. 

With significant changes to employer national insurance contributions coming in April 2025, including a rise to 15% and a lower earnings threshold of £5,000, hospitality businesses face substantially higher wage costs. This particularly affects operations with part-time employees working just a few shifts per week, who previously fell below the threshold. At a time when businesses need to manage these increased costs, a thoughtfully designed benefits package can help maintain employee satisfaction without solely relying on salary increases. 

One of the main reasons to make employee benefits in the restaurant and hotel industry is that the hospitality industry is known for its long working hours, which can cause burnout and high-stress levels among employees. The UK's Largest Hospitality Salary survey shows this clearly—61% report being happy in their current role, down from 69% in 2024. By offering benefits such as health insurance, paid time off and wellness programs, employers can show their staff that they care about their well-being, which can improve employee morale and job satisfaction. 

Additionally, employee benefits can also help employers attract top talent. In a highly competitive job market, candidates are looking beyond salary to the overall compensation package offered by employers. A comprehensive benefits package that includes things like retirement plans, tuition reimbursement and employee discounts can make an employer stand out and increase the likelihood of attracting the best candidates. 

Finally, offering employee benefits can be a cost-effective way to retain staff. It can be expensive to continually recruit and train new employees, and turnover can disrupt business operations. By offering benefits, employers can increase employee loyalty and reduce the likelihood of staff leaving for better benefits elsewhere. 

What is considered to be a ‘top benefit’ to an employee will vary from company to company, and employee to employee. But there tend to be some common themes. Here we take a look at the top 5 most important employee benefits, according to the UK’s Largest Hospitality Salary Survey 2025. 

93% considered this to be very or quite important. 

A fair salary remains in the top spot for another year, though with a slight decrease from last year's 95%. Some might argue it shouldn't even be classified as a benefit, but rather as a basic requirement. Yet its importance to employees cannot be understated.   

Whilst 93% of employees consider a fair salary to be very or quite important, only 39% feel they are paid appropriately—a concerning drop from last year's 48%.  

If you're not sure if you're currently offering a fair wage whilst managing these increased costs, it might be time to take a look at the market, speak to your industry peers and survey your employees to make sure you're offering competitive wages.  

93% considered this to be very or quite important  

Moving up to share the top spot in this year's Hospitality Salary Survey is 'holiday entitlement', with an increase from last year's 92%. Annual leave will vary depending on how many hours an employee works, but more and more hospitality employees are looking for holiday entitlements that go beyond the norm. Typically, hospitality employees work long and unsociable hours, so having time off available for them to spend with their friends and family is even more important than it may be in other industries. 

Thankfully, employers appear to be recognising this, as the Hospitality Salary Survey found that 63% of employees have access to this benefit—the highest percentage among all employee perks. But there's still room for improvement, with 37% of respondents reporting holiday entitlement as something not currently available to them.

88% considered this to be either very or quite important  

All too often, hospitality roles aren't seen as long-term careers. While last year's Hospitality Salary Survey showed 62% of employees thought they would be working for the same company the following year, in 2025 this figure has dropped to 60%, suggesting that employee retention remains a challenge for the industry. 

A major contributor to increasing employee satisfaction in hospitality is debunking the perception that there aren't opportunities for progression. With the right training opportunities available to them, and clear development paths in place, this can be changed.  

The survey shows this remains important, with 88% of employees valuing training and development. Unfortunately, only 51% say it's available to them, and just 48% feel they've received sufficient training to fully qualify for their roles—down from 50% in 2024. This gap between desire and delivery presents a clear opportunity for improvement. 

Naturally, training and development opportunities will be easier for larger hospitality businesses to offer than smaller, single-site businesses. Multi-site hospitality operators will generally have more resources available to help upskill employees as well as greater opportunities for internal progression. Smaller businesses may want to consider an internal mentoring scheme, whilst larger businesses may want to look into implementing a learning and development solution to help take their employee training to the next level. 

80% considered this to be either very or quite important  

Work/life balance has become increasingly important to employees in recent years. The 2025 survey shows that 47% of hospitality employees are working more than eight additional hours per week, up from 40% last year. Meanwhile, only 41% are being paid for these extra hours—showing a clear disconnect between work patterns and compensation. 

Better scheduling could transform how hospitality workers view their roles. The survey reveals that 71% of employees who have access to flexible working report higher job satisfaction. Yet only 43% of businesses currently offer this benefit, despite its importance to staff retention. 

While the nature of hospitality work means complete flexibility isn't always possible, there are ways to improve. Implementing real-time visibility of staff availability, using automated validation of scheduling changes and ensuring Working Time Regulations compliance through proper rota management could help meet this growing demand for flexibility.  

Even small changes to how rotas are managed can make a significant difference to employee satisfaction. In the hospitality sector, more than half of workers see the ability to work flexibly as a key factor in job selection, valuing it as highly as pay and benefits. 

73% considered this to be either very or quite important  

Moving up in importance from last year's rankings, bonuses and tips have become increasingly significant to hospitality employees. Since the introduction of the Employment Act in October 2024, the fair distribution of tips has become a standardised practice across the sector, bringing greater transparency and fairness to how tips are allocated. 

Despite these regulations being in place for several months, The Hospitality Salary survey shows only 45% of employees report receiving bonuses or tips as a structured benefit. With the National Insurance changes coming in April 2025, having a clear and fair tipping system is more important than ever for employee satisfaction and retention. 

For businesses still adapting to the tipping legislation, there are several requirements to consider. These include maintaining a written policy on tip allocation, ensuring tips are paid to workers within one month of receipt, and keeping detailed records of tip distribution. Whether through a tronc system, performance-based allocation or other approved methods. Learn more about tips and tronc here. 

72% considered this to be either very or quite important  

Dropping from its previous position in the rankings, mentoring remains a valued benefit but has seen a slight decline in importance compared to more immediate financial benefits. However, this shift shouldn't undermine its significance in developing and retaining talent. 

Currently, only 22% of employees report having access to mentoring programmes, representing a significant opportunity for employers to differentiate themselves. Effective mentoring schemes can help combat the perception of hospitality jobs as temporary roles and demonstrate clear pathways for career progression. 

For businesses looking to implement mentoring, the approach can be tailored to their size and resources. Smaller businesses might consider informal buddy systems or cross-training opportunities, while larger organisations could develop structured programmes linking experienced staff with those earlier in their careers. The key is to make the commitment to professional development visible and accessible to all employees.