How Employee Wellness Is Becoming Hospitality’s Most Valuable Amenity

When you think of wellness, a friendly chocolate Lab roaming the back office at the Grand Hyatt Taipei may not be the first thing that comes to mind.

But it is for Clark Fang. His eyes light up as he describes the emotional support dog that will visit the hotel next month.

"He helps us feel less stressed," says Fang, the hotel’s director of operations. "We love him."

The dog is part of a new employee wellness program. After COVID-19 gutted Taipei’s hospitality workforce, leaving staff working 10-hour days without breaks, Fang and his team needed a radical change.

The solution? An emotional-support Labrador, free massages — and employee movie nights.

"If we don’t have happy employees," he adds, "guests won’t be happy either."

In Taiwan, where tourism is still struggling to recover from a pandemic downturn, employee stress is a significant concern. But Grand Hyatt’s pivot reflects a global shift. Hotel managers worldwide are recognizing the importance of employee wellness in boosting job performance and loyalty, according to a recent study in the journal Administrative Sciences. And there's something in it for discerning guests, too.

Why employee wellness matters in the hospitality industry — and to you

The lodging industry is doubling down on employee wellness for good reason, says Denise Rousseau, a professor of organizational behavior and public policy at Carnegie Mellon University. The programs help employees manage job stress, which increases employee satisfaction, reduces absenteeism and turnover, and improves employee satisfaction.

One study suggested that participation in the wellness program increased average worker productivity by over 5 percent. That's roughly equivalent to adding one additional day of productive work per month for the average employee.

It also affects the guest experience.

"When employees believe they work for a good employer, it spills over into the customer experience," says Rousseau. "Employees express positive feelings and go the extra mile."

Eva Pacheco, director of human resources at TMC Hospitality, a hospitality development company, says the trend reflects how society sees wellness.

"In hospitality, we’re here to help people feel good while they travel," she adds, "and making wellness part of that experience isn’t just thoughtful, it’s good business sense."

Grand Hyatt celebrates Wellness Day

At the Grand Hyatt, employee wellness isn’t corporate lip service. It’s woven into daily operations.

During the hotel's Global Wellness Day, therapists give on-site massages to housekeepers and front-desk staff. Teams unwind at screenings of films like the latest installment of Mission: Impossible.

Managers also host weekly listening sessions where employees vent their frustrations.

Fang’s philosophy is simple: "Our general manager is the parent of this home. We work as a team, even when we disagree."

The results? After a 2023 exodus of burned-out staff, retention rates are climbing. And even though the hotel is large — there are 850 rooms and suites — customers say it delivers a personal touch.

For example, it isn't unusual to see the hotel's executive chef, Tan Ban Khim, asking guests at his famous vegetarian buffet if he can help them choose a dish. And everyone from housekeepers to front desk employees is always friendly and goes the extra mile to ensure guests have everything they need, which is uncommon for a large hotel.

Other hotel employee wellness programs focus on mental and physical health

Some employee wellness programs are already well established. At Schloss Elmau in the Bavarian Alps, one of the most luxurious independently owned and operated spa resorts in Germany, employees can access all of the resort's wellness offerings, including a world-famous spa, outdoor pools, tennis and skiing. Once a year employees can spend one night at the resort, all inclusive.

Other programs are newer. For example:

A boutique hotel takes care of its "soul." At La Coralina Island House, a boutique eco-luxury retreat in Bocas del Toro, Panama, employee wellness is central to the guest experience. Managing Director Ariel Barrionuevo says employee support is fundamental to delivering the property's peaceful, restorative experience. "Our team is the soul of this place," Barrionuevo says. "If we expect them to take care of travelers in a meaningful way, we have to take care of them first." This philosophy translates into practical measures: Staff meals are prepared in the same organic kitchen that serves guests. Biweekly wellness check-ins provide space for employees to discuss their well-being beyond work performance. On-site offerings include language development and mindfulness training. The hotel also emphasizes fair wages and flexible scheduling to prevent burnout. Barrionuevo links this approach directly to guest perception, noting reviews often highlight the staff's warmth and attentiveness, with some guests returning specifically to reconnect with team members. "That kind of hospitality isn’t trained," she says. "It's cultivated through care."

Sports competitions and singing bowls at the Four Seasons. At the Four Seasons Hong Kong, employees mark wellness day with mindfulness sessions featuring a singing bowl class, therapeutic tea servings and badminton competitions. "A healthy, engaged workforce directly translates to lower staff turnover rate and a higher score in employee engagement," says Winnie Tam, director of people and culture at the Four Seasons Hong Kong.

Broadening employee support at Hilton. For example, Hilton offers a long list of benefits to support employees through various life stages and challenges, according to Derrick Steinour, director of sales and marketing at Hilton West Palm Beach. These include logistical support for those managing caregiving responsibilities, as well as access to mental health therapists, specialized resources supporting all pathways to parenthood, and a nationwide gym program. "When our team members take care of themselves, they're better equipped to take care of our guests," he says.

Taking a bite out of burnout at Great Wolf Resorts. Wellness programs aren't confined to luxury hotels. Great Wolf Resorts, a chain of indoor water park resorts based in Chicago, recently launched a program called "Be Pack Positive" – a company-wide initiative rolling out to its 13,000 employees. The wellness initiative has several components, including mental health, physical health, social connections and fostering healthy habits. "We often overlook that promoting mental fitness is the foundation for fostering positivity," explains Romie Mushtaq, a board-certified physician and Great Wolf Resorts’ chief wellness officer. "This positivity is the catalyst for high-performing, engaged, and creative teams, which leads to better guest service for families visiting our resorts."

Why hotel employee wellness programs are becoming more important

These wellness programs aren't happening in a vacuum. While employee satisfaction has always been a concern, customer service experts say guests are no longer content to get service with a smile.

"Guests today are more attuned to human interaction — and often comment on whether staff seem present or disconnected," notes Max Babych, CEO of SpdLoad, a developer of service software.

The newest hotel employee wellness programs address a massive and little-understood problem in the hospitality industry. After the pandemic decimated the hotel industry's workforce, burnout and low morale have become a major problem.

These programs are ambitious in their scope, says Sekoul Krastev, a decision scientist and co-founder of The Decision Lab, a behavioral science consultancy. They address psychological safety and retention by creating worker-friendly environments that emphasize teamwork and service consistency. They also form a feedback loop with guest service.

“Research shows that when hotels visibly invest in employee wellness, it positively shapes guest perception,” he says. “Thanks to the halo effect, guests tend to interpret happier staff as a sign of overall quality — reinforcing loyalty and driving repeat business.”

And that may be the biggest takeaway for travelers looking for a better experience. If you want to achieve wellness on your next hotel stay, look for a property that values not just your wellness, but the wellness of its employees.

By Christopher Elliott, Senior Contributor