The Financial Sleep Crisis: Uncovering the Cost of Sleep Deprivation to Businesses and Economies

The Financial Sleep Crisis: Uncovering the Cost of Sleep Deprivation to Businesses and Economies

Sleep is not just a personal affair; it's an economic imperative. The financial repercussions of inadequate sleep on businesses are startling. According to the RAND Corporation, the annual economic losses due to sleep deprivation amount to up to $411 billion in the US and £40 billion in the UK. These figures represent almost 2% of the GDP, a substantial drain that manifests through reduced productivity, absenteeism, heightened healthcare costs, and lowered morale among the workforce.

Unveiling the Science:

Memory consolidation, cognitive function enhancement, and cellular repair are just a few of the vital activities that happen during our sleep cycles. Conversely the prefrontal cortex, a brain region responsible for decision-making and self-control, becomes significantly less active without adequate sleep. At an organisational level, the collective behaviour of multiple under-slept employees can easily culminate in a culture of underperformance.

The Ripple Effect:

The implications of prioritising sleep extend far beyond the confines of the workplace, resonating through the broader societal fabric. When businesses foster a culture of sleep health, they contribute to a societal framework where wellness and productivity are esteemed. A well-rested workforce is a healthier workforce, reducing the strain on healthcare systems. Furthermore, enhanced productivity and reduced absenteeism from improved sleep health contribute to better economic output, driving job creation, and overall economic growth.

Turning the Tide: Practical Measures:

  • Workspace Wellness: A well-designed workspace can significantly impact employees' sleep quality. Consider ample natural light, human centric artificial light, creating nap rooms or quiet spaces with comfortable furniture for rest during work hours.

  • Policy Innovations: Forward-thinking policies like flexible work hours and mindfulness breaks can go a long way in promoting better sleep hygiene. Restricting work-related communications after hours is another effective measure that respects employees' personal time, allowing them to unwind and prepare for restful sleep.
  • Sleep Aids: Providing employees with sleep aids such as Z Lab's Night Visor is a straightforward yet impactful way to enhance individual sleep quality. Alongside, leveraging technology like sleep tracking apps or devices can offer invaluable insights into sleep patterns. Night Visor, in particular, has proven to improve sleep quality in tracked uses, and has been adopted by leading global companies across various sectors.
  • Educational Outreach: Knowledge is empowering. Offering workshops, resources, or bringing in sleep experts for talks can significantly elevate sleep health awareness. 
  • Behavioural Encouragements: Simple nudges like encouraging regular breaks, reducing late-afternoon caffeine availability, and sharing relaxation techniques can foster a culture of sleep awareness and healthier sleep habits.


The economic narrative of sleep is compelling, urging businesses to reconsider the importance of sleep wellness within their organisational culture. By investing in the sleep health of employees, companies are not only fostering a more productive and engaged workforce but also contributing to a broader societal wellness and economic stability.

We invite companies to reach out to Z Lab to explore how we can collaboratively work towards improved corporate sleep health.


By Rory Macpherson