
The Business Case for Sleep: What HR Professionals Need to Know
Author: Robin Daultani
Mental health support. Fitness benefits. Stress management resources. Workplace wellness programs have evolved significantly over the past decade. Yet one foundational pillar of employee health and performance remains conspicuously absent from most wellness strategies: sleep.
The cost of this gap is staggering. A landmark RAND Corporation study¹ found that insufficient sleep costs the Canadian economy up to $21.4 billion annually, through a combination of absenteeism and reduced productivity. A Gallup study² reinforced this finding, showing that poor sleepers report more than double the rate of unplanned absences compared to other workers.
And a 2026 Wellhub study³ found that 83% of employees identify poor sleep as a contributing factor to burnout, a figure that demands attention when nearly nine in ten employees report burnout symptoms annually.
Consider what this looks like in practice. A team member who slept poorly scrolls through emails at 7am already feeling behind. By mid-morning, a decision that should take minutes stretches into a 45-minute deliberation. After lunch, focus drops sharply, not because of the workload, but because the brain is running on insufficient rest. By 3pm, a second coffee masks the fatigue but does nothing for the impaired judgment underneath. Research shows that after 17 hours of continuous wakefulness, the equivalent of a normal waking day ending at 11pm, cognitive impairment matches that of someone who is legally intoxicated⁴. This is not an unusual day. For many employees, this is every day.
Sleep rarely appears on the wellness agenda, leaving a significant and measurable performance gap unaddressed. The reason is partly cultural. Sleep is still widely perceived as a personal responsibility. But the research suggests otherwise: sleep is not a personal indulgence. It is a performance lever that affects every metric HR professionals are already tracking: productivity, absenteeism, burnout, and retention.
The same RAND study¹ that quantified the cost of insufficient sleep also found the flipside: if Canadians who sleep under six hours started sleeping just one hour more per night, it could add $12 billion to the national economy. The returns are not theoretical. They are measurable, achievable, and waiting to be captured.
The good news is that addressing sleep does not require a major overhaul of existing wellness programs. Organizations can start by simply putting sleep on the wellness agenda. Most workplace wellness surveys ask about stress, mental health, and physical activity. Adding questions about sleep quality or duration to existing wellness assessments can provide baseline data to identify and measure the scope of the issue within their workforce.
Leaders and managers who openly prioritize rest and recovery give permission for the rest of the organization to do the same. Small cultural shifts like discouraging late-night emails or respecting boundaries around after-hours communication can quietly improve sleep conditions across an entire team. None of these require a budget. They require intentional inclusion.
Now consider what becomes possible. A team member, after two weeks of consistent, quality sleep, arrives at work already focused. The mid-morning decision is made in minutes. The afternoon dip is manageable, not debilitating. The second coffee becomes optional, not essential. Nothing else about their workload or responsibilities has changed. They show up more empathetic and more present for their customers, peers, and family. The only difference is how well they slept. The performance gap between these two versions of the same employee is not marginal. It is the difference between surviving and thriving.
The question for HR professionals is no longer whether sleep affects organizational performance. The research has answered that definitively. The question is whether sleep has earned a place in their wellness strategy. And if not, what that gap is quietly costing their organization.
References
1. Hafner, Marco, et al. "Why Sleep Matters — The Economic Costs of Insufficient Sleep." RAND Corporation, 2016. www.rand.org/pubs/research_reports/RR1791.html
2. "Poor Sleep Linked to $44 Billion in Lost Productivity." Gallup, 2022. news.gallup.com/poll/390797/poor-sleep-linked-billion-lost-productivity.aspx
3. "State of Work-Life Wellness 2026." Wellhub, 2026. wellhub.com
4. Williamson, A.M. and Anne-Marie Feyer. "Moderate Sleep Deprivation Produces Impairments in Cognitive and Motor Performance Equivalent to Legally Prescribed Levels of Alcohol Intoxication." Occupational and Environmental Medicine, vol. 57, no. 10, 2000, pp. 649-655.
Robin Daultani is a Certified Sleep Science Coach based in Calgary who works with executives and organizations on sleep and performance through his practice, Slumbrful. You can reach him at robin@slumbrful.com.
The views and opinions expressed in this blog post belong solely to the original author(s) and do not necessarily represent the views and opinions of CPHR Alberta.





