Insomnia comes with a heavy price tag for companies

Wednesday, 31 August 2011 16:00

News - Employee Performance

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It doesn't take extensive research to know that a sleepy worker is an unproductive worker. But just how costly is lost productivity due to sleepless nights?

Research that was led by a Harvard Medical School professor reveals that the cost of presenteeism due to insomnia may be as high as $63.2 billion for companies in the U.S.

"Americans are not missing work because of insomnia. They are still going to their jobs but accomplishing less because they're tired. In an information-based economy, it's difficult to find a condition that has a greater effect on productivity," said lead researcher Ronald Kessler, Ph.D.

Kessler and his team analyzed data from the American Insomnia Study to reach their conclusions. They discovered that lost productivity stemming from inadequate rest results in about 11 fewer working days per employee, and costs their employer about $2,280 annually.

The researchers said that the next step in remedying the problem is figuring out the most cost-efficient interventions that may help improve employee sleep habits.

Organizations that implement employee wellness programs that provide tools and resources for stress management often boast healthier, more productive workers. It's possible that reduced workplace stress and good sleep habits can influence each other, promoting overall employee wellness.