Why employee sleep matters more than you think

The real cost of a sleepless workforce

Let’s face it, most people aren’t getting enough sleep. In fact, studies show that nearly 40% of employees are sleep-deprived on any given day. That’s not just a personal issue, it’s a workplace one.

Sleep-deprived employees are more likely to make mistakes, get sick, and burn out faster. Their productivity drops, focus wavers, and decision-making suffers. When your team is running on empty, your business pays the price.

Sleep isn’t a luxury, it’s a competitive advantage

Good sleep improves memory, mood, creativity, and problem-solving — all things you want your team to excel at. It sharpens attention, reduces stress, and helps people make better decisions under pressure.

It’s not just about avoiding burnout. It’s about unlocking a higher level of performance. Well-rested employees are more present, more innovative, and way more fun to work with.

Sleep tracking at work? It’s happening

Some companies are already ahead of the curve. They’re giving employees wearable tech like WHOOP bands, Oura Rings, or Fitbits to track sleep, recovery, and readiness.

Why? Because when people know how well (or poorly) they’re sleeping, they start to care. And when sleep becomes part of the wellness conversation at work, it’s easier to create lasting, healthy habits.

Sleep tracking doesn’t have to feel invasive. Think of it like a step counter, but for rest.

Want better sleep? Get moving

There’s a direct link between physical activity and quality sleep. The more we move, the better we snooze. That’s why encouraging employees to exercise is one of the easiest ways to boost their sleep and, by extension, their performance.

You don’t need to force 5 a.m. spin classes. Start small:

• Offer fitness reimbursements
• Promote walking meetings
• Organize casual team runs or yoga sessions

It’s about creating a culture where movement is normal and celebrated.

Build a sleep-friendly company culture

Want your team to sleep better? Start by removing the pressure to always be “on.” That means:

• No more late-night Slack messages
• Respecting boundaries after hours
• Encouraging mental health days

Some companies even go as far as offering nap pods or "recovery breaks." But even without high-tech rest stations, leaders can model good sleep behavior by showing up well-rested and prioritizing rest themselves.

The ROI of rest

Better sleep doesn’t just feel good, it pays off. Well-rested employees are more productive, miss fewer days, and tend to stick around longer.

Studies have found that sleep improvement programs can lead to:

• 20–30% increase in productivity
• Reduced healthcare costs
• Stronger employee engagement

Think about it this way: you can spend your wellness budget on free snacks, or help your team get the kind of rest that actually fuels results.

Final thought: being tired isn’t a badge of honor

If you want your people to do great work, they need to sleep. Full stop.

We’ve glamorized hustle culture for too long, but the truth is simple. Sleep makes us better. Better thinkers, better leaders, better colleagues.

So if you really care about your team and your bottom line, encourage them to rest, recover, and recharge. The results might just surprise you.