Most people know that a poor night’s sleep leaves them feeling tired and unfocused the next day. However, the effects of sleep deprivation extend far beyond fatigue. Poor sleep impacts physical health, mental well-being, workplace performance, and overall quality of life.
Research reveals that sleep challenges are becoming increasingly common among Canadian employees. 43% of workers consistently get less than the recommended seven hours of sleep per night, while one in five experiences clinical insomnia. For employers, this growing issue is affecting productivity, absenteeism, workplace culture, and employee health.
Why sleep matters.
Sleep is one of the foundations of good health. During sleep, the body repairs itself, regulates hormones, strengthens the immune system, and processes information from the day.
When employees don’t get enough quality sleep, they experience:
- Difficulty concentrating
- Reduced productivity
- Increased stress and anxiety
- Poor decision-making
- Lower motivation
- Mood changes and irritability
Over time, chronic sleep deprivation has also been linked to serious health conditions such as heart disease, diabetes, obesity, depression, and anxiety disorders.
How sleep loss affects the workplace.
Poor sleep follows employees into the workplace.
Research shows that one-third of Canadian employees believe their sleep quality negatively affects their work. Employees who struggle with sleep are more likely to report challenges with concentration, productivity, work quality, and motivation.
Reduced productivity.
Fatigue can make it difficult to stay focused and complete tasks efficiently. Even when employees are present at work, poor sleep can lead to presenteeism (being physically present but not performing at full capacity).

Increased absenteeism.
Employees experiencing sleep issues are more likely to miss work. Sleep deprivation can weaken the immune system, contribute to illness, and make managing existing health conditions more difficult.
Safety concerns.
In industries that involve driving, operating equipment, or physically demanding work, fatigue increases the risk of accidents and injuries.
Lower employee engagement.
Sleep affects mood and emotional resilience. Employees who are consistently exhausted may feel less motivated, less engaged, and less satisfied with their jobs.
What’s keeping employees awake?
There is no single cause of poor sleep. Today’s workforce faces a variety of challenges that can interfere with healthy sleep habits.
Some of the most common factors we’ve noticed are:
- Financial stress
- Work-related stress and anxiety
- Excessive screen time
- Mental health challenges
- Family responsibilities
- Irregular work schedules
- Lack of routine or exercise
Financial concerns and job-related stress rank among the leading reasons employees struggle to get quality rest, highlighting the close connection between workplace well-being and sleep health.
Some employees face greater sleep challenges.
While sleep issues can affect anyone, certain groups are more likely to experience ongoing difficulties.
Employees with chronic health conditions.
Research shows a strong connection between chronic conditions and poor sleep. Employees managing conditions such as diabetes, asthma, migraines, or mental health disorders often report significantly higher rates of insomnia.
Younger workers.
Surprisingly, younger employees report some of the highest rates of sleep difficulties. Financial pressures, career stress, technology use, and mental health concerns may all contribute to poorer sleep habits.
Women in perimenopause and menopause.
Hormonal changes during perimenopause and menopause can significantly impact sleep quality. Symptoms such as hot flashes, night sweats, and insomnia make restorative sleep difficult to achieve.
Why employers need to pay attention.
Sleep health is a business issue. While it may be a personal issue, we believe it affects a business tenfold.
When employees consistently struggle with sleep, organizations may experience:
- Lower productivity
- Higher absenteeism
- Increased benefit and healthcare costs
- Reduced employee engagement
- Greater risk of burnout
- Higher turnover
The good news is that employers have opportunities to support better sleep and improve overall workforce well-being.
How benefits plans can help.
Many of the resources employees need to improve sleep may already be available through their workplace benefits plan.
Mental health support.
Stress, anxiety, and depression are closely tied to sleep quality. Access to counselling and mental health professionals can help employees address underlying issues that may be disrupting their sleep.
Virtual healthcare services.
Access to healthcare professionals through virtual care can help employees receive timely assessments and treatment for sleep-related concerns.
Chronic disease management resources.
Programs designed to help employees manage chronic conditions can improve overall health and, in many cases, contribute to better sleep quality.
Wellness education.
Many employees simply don’t know where to start when it comes to improving their sleep. Educational resources and wellness programs can help employees understand sleep hygiene, treatment options, and healthy habits.
Creating a workplace that supports better sleep.
Supporting sleep health goes beyond benefits coverage. Workplace culture also plays an important role.
Employers can encourage healthier sleep habits by:
- Promoting work-life balance
- Encouraging employees to disconnect after work hours
- Offering flexible work arrangements when appropriate
- Providing wellness education and resources
- Supporting mental health initiatives
- Recognizing the signs of burnout and fatigue
Small changes can have a meaningful impact on employee well-being and workplace performance.
Navy & Sage Benefits is here.
Sleep is often overlooked in conversations about workplace wellness, yet its impact is significant. Poor sleep affects employee health, productivity, engagement, and overall organizational success.
By raising awareness, promoting available resources, and creating a culture that supports employee well-being, employers can help their teams get the rest they need to perform at their best.
If you’re needing more guidance when it comes to how to encourage your workforce to have better sleep hygiene, reach out to Navy & Sage benefits. We’ll discuss your benefits plans and how your plan can benefit your employees. Contact us through our online contact form to get started.


