Poor sleep doesn't just make employees tired; it chips away at productivity, workplace safety and healthcare budgets. South African employers are feeling the impact. Here's how companies can support better sleep and build a healthier, high-performing workforce through smart employee benefits and practical support.
What's the link between sleep and productivity?
Sleep deprivation doesn't stay at home when employees come to work. It follows them into meetings, factory floors, customer calls and the bottom line.
Findings from the 2023 Economic Impact of Insufficient and Disturbed Sleep in the Workplace study found that poor sleep can cost companies between US$332 and US$1,967 per employee annually. The US economy loses an estimated US$411 billion each year to sleep-related productivity losses.
While local numbers will vary, South African businesses face similar pressures - from increasing absenteeism and presenteeism to higher claims on medical schemes and more strain on employee benefits.
Why sleep should be part of your employee wellness strategy
When employees don't get enough quality sleep, it shows - in their work, health and relationships.
Poor sleep is linked to lower productivity and workplace performance, more mistakes and safety incidents, higher rates of burnout and absenteeism, mood disorders and strained interpersonal dynamics, increased healthcare claims and sick leave, and lifestyle diseases like diabetes, heart disease and obesity.
According to the National Sleep Foundation 's 2025 Sleep in America® Poll:
- 58% say lack of sleep affects their productivity
- 45% struggle with social interactions at work
- 58% find it harder to complete tasks accurately
- Over half say they battle to work their full hours when sleep-deprived
People who consistently get the recommended 7 to 9 hours of sleep are significantly more likely to thrive at work and home. Good sleep improves mental health, focus, decision-making, and emotional regulation - essential for a resilient, high-performing workforce.
And it's not just good for people - it's good for business. Prioritising sleep is an investment in the sustainability of your employee assistance, wellness, and health strategies.
What happens when sleep problems go untreated?
Many employees face more than just occasional late nights. Sleep disorders such as insomnia and sleep apnoea are serious medical conditions that impact both health and performance.
These disorders increase the risk of fatigue-related accidents, impair cognitive function and decision-making, contribute to chronic health conditions (from anxiety and depression to heart disease and cancer), and lead to burnout and long sick leave.
In the US, workplace accidents and errors related to sleep loss cost companies an average of US$3,123 per employee each year - including healthcare and lost productivity.
For South African employers, this translates into increased pressure on healthcare plans, higher disability claims, and greater demand for comprehensive employee assistance programmes, like Healthy Company from Discovery Corporate and Employee Benefits, supporting early intervention and recovery.
How can employers help staff sleep better?
The good news? Employers can make a measurable difference. A proactive, practical approach to sleep health can boost productivity, reduce costs and support employee wellbeing.
Here are 10 ways to promote healthy sleep in the workplace:
- Prioritise wellness as part of your employee value proposition, with clear goals and measurements.
- Promote flexibility - remote work, staggered shifts, and 'duvet days' allow for better rest and recovery.
- Create outdoor break areas with benches and greenery - natural light helps regulate sleep hormones.
- Encourage healthy habits like exercise and nutritious food by starting a walking group or reviewing the canteen menu.
- Support shift workers with transport or ride-share incentives to reduce fatigue-related commuting risks.
- Respect boundaries after hours and on weekends - rest isn't a luxury; it's a requirement.
- Add sleep screening to occupational health programmes to detect early warning signs.
- Ask about sleep in your annual employee surveys to identify patterns and trigger early referrals to employee assistance services.
- Run a sleep education campaign alongside mental health initiatives to normalise conversations and share tips.
- Train managers to recognise signs of sleep deprivation and burnout - and know how to respond constructively.
Want to go one step further? Gamify a sleep challenge. Reward teams or departments that improve sleep habits and track positive behaviour change.
These initiatives don't just improve sleep, they strengthen your overall employee benefits strategy by creating a culture of care, recovery, and long-term health.
In summary: Sleep is your next workplace superpower
Poor sleep is a hidden productivity killer, but it's also one of the easiest wins. When employers actively promote healthy sleep through policy, education, and employee assistance programmes, the results speak for themselves: fewer errors, lower absenteeism, better employee engagement, and improved overall health.
A workplace culture that values sleep isn't soft - it's smart. And the return on rest is worth every effort.