The cost of fatigue: what lack of sleep costs

Lack of sleep isn't just the employee's problem. RAND Europe calculated what it costs five major economies every year.

Business4 min read1 source

The study

The 2016 report “Why Sleep Matters” estimated the economic impact of insufficient sleep in the United States, Japan, Germany, the United Kingdom and Canada. The costs come mainly from lost productivity: people missing work, and people at work but performing below their ability.[1]

The numbers

CountryAnnual lossShare of GDPWorking days lost
United Statesup to $411 bn2.28%1.23 million
Japanup to $138 bn2.92%604,000
Germanyup to $60 bn1.56%209,000
United Kingdomup to $50 bn1.86%207,000
Canadaup to $21.4 bn1.35%78,000

Among other things, the report recommended that employers consider facilities for daytime naps at work.[1]

What it means for your company

Estonia wasn’t part of the study, but the logic is the same: a tired team works slower and makes more mistakes. A rest pod is one of the few wellbeing investments that is visible at work and can be used every day.

Sources

  1. Hafner M, Stepanek M, Taylor J et al. Why Sleep Matters: The Economic Costs of Insufficient Sleep. A Cross-Country Comparative Analysis. RAND Europe, 2016. RR-1791. www.rand.org/pubs/research_reports/RR1791.html (opens in a new window)