If you're an employer trying to maximize output and efficiency, here’s something you may not have budgeted for: the true cost of insufficient sleep among your employees.
It’s tempting to reward long hours and late-night hustle, but chronic sleep deprivation doesn't lead to better results—it leads to burnout, absenteeism, and lower performance. In fact, according to the McKinsey Global Institute, sleep-deprived employees are significantly less productive and more likely to make mistakes, fall ill, or quit.
A recent study found that sleep deprivation is linked to 7 of the 15 leading causes of death, including heart disease, diabetes, and depression.
Read the research
The Workplace Toll of Insufficient Sleep
Here’s how lack of sleep quietly drains your company’s resources:
1. Decreased Productivity
Employees running on empty make more errors, are slower to complete tasks, and often need more supervision. A single sleep-deprived worker can cost a company several thousand dollars in lost productivity annually.
2. Higher Absenteeism
Fatigue leads to more sick days. A report by the National Safety Council found that overtired workers are 2.5x more likely to be involved in a workplace incident. Sleep-related absenteeism adds up fast, especially in lean teams.
3. Healthcare Costs
Lack of sleep contributes to a wide range of chronic health conditions—hypertension, obesity, and anxiety to name a few. This means higher healthcare premiums and more time off for recovery.
Another study published in the Journal of Clinical Sleep Medicine found that employees with insomnia cost businesses $3,225 more in healthcare annually than well-rested employees.
See the study
So, What Can Employers Do?
You don’t need to overhaul your business model to foster healthier sleep patterns. Here’s how to start:
- Normalize Work-Life Boundaries
Encourage employees to disconnect after hours. Avoid late-night emails or last-minute deadlines that keep them online into the night.
- Rethink the Grind Culture
Let go of the “always on” mindset. Burnout isn’t a badge of honor—it’s a sign your team is about to break.
- Support Wellness Programs
Offer access to sleep education, relaxation tools, or subscriptions to meditation apps. Bring in sleep experts for workshops. This shows you care beyond the 9 to 5.
- Upgrade the Physical Environment
If you offer overnight shifts or long hours, ensure the environment supports recovery—quiet rooms, blackout curtains, or even calming aromatherapy can help.
At Paizlie, we advocate for better sleep not just at home, but in the workplace. Our range of breathable natural sleepwear, soothing teas, and aromatherapy solutions are designed to help people fall asleep faster and wake up truly refreshed.
Better Sleep = Better Business
Sleep is not a luxury—it’s a biological necessity. Employers who acknowledge this and build sleep-positive cultures will retain top talent, reduce sick days, and see sharper focus across teams.
For more insights on how sleep impacts performance and health, check out our related blog:
👉 Are You a Startup Founder Who Can’t Sleep? This one is for you. Sleep Deprivation kills Startups. Here’s What Every Founder Needs to Know
