The 230-bedroom, four star property was placed at number 99 on the list which was put together from 964 company entries and after more than 230,000 employees were surveyed.
Joanne Wright, human resources manger at the hotel, said that having a happy workforce is crucial to deliver outstanding hospitality.
"We work hard to ensure our staff are satisfied and engaged in their roles," she said.
"Showing them we care about them ensures they deliver caring service to our guests."
The criteria used to compile the Sunday Times' list uses eight key indicators of workplace engagement including staff opinions of their leadership, their management, their manager, immediate colleagues, pay and benefits, wellbeing, the company's willingness to give something back, personal development and their overall sense of affiliation with their employees.
The Cavendish is celebrating being placed on the Sunday Times list just three weeks after being awarded two stars in the Best Companies Accreditation scheme.
Cavendish hotel wins green Gold award >> By Janet Harmer
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