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Sleep Disorders in the Workplace: Implications for Employee Performance and Safety

August 19, 2025

When we think of workplace hazards, we imagine heavy machinery, wet floors, or faulty wiring. But one of the biggest hidden risks is something many people bring to work every day: poor sleep.

In Australia, almost 40% of adults experience inadequate sleep, and two in three report at least one sleep problem.1,2 That’s not just a few tired mornings—it’s a widespread issue that affects performance, safety, and wellbeing across every industry.

The Cost of Being Tired

The Asleep on the Job report found that inadequate sleep costs Australia billions each year. In 2016–17 alone, productivity losses were estimated at $17.9 billion, or $2,418 per person affected.3 Beyond lost output, fatigue leads to absenteeism, mistakes, and an increased risk of injury at work.3

How Sleep Loss Shows Up at Work

Sleep isn’t just downtime—it’s when the brain and body reset. It plays a crucial role in memory consolidation, cognitive function, and emotional regulation.4 Without it, things quickly unravel:

  • Poor cognitive performance – Sleep loss affects memory, attention, alertness, judgement, reaction times, and decision-making.5 Research shows that moderate sleep deprivation impairs performance as much as a 0.05% blood alcohol level.6
  • Increased safety risks – Fatigue contributes to microsleeps, delayed reactions, and errors. Workers with sleep problems are 1.6 times more likely to be injured on the job.7
  • Emotional strain – Lack of sleep heightens irritability, stress, and overreactions, which can strain workplace relationships and spill into home life.8

Even cutting back by just 1.5–2 hours of sleep for a few nights can increase errors, impulsivity, and lapses in judgement—issues that ripple across teams and projects.9

It’s also not just about the quantity of sleep but the quality. Sleep disorders such as insomnia, obstructive sleep apnea, and restless legs syndrome can leave people feeling unrefreshed, even after a full night in bed. Over time, these conditions can be just as harmful to work performance and safety as chronic sleep deprivation.3

The Human Side of Fatigue

It’s easy to see sleep as a personal issue, but the impacts don’t stop at the bedroom door. A tired worker might miss deadlines, snap at colleagues, or make critical mistakes. Over time, ongoing sleep problems are linked with anxiety and even cognitive decline.8

Time to Take Sleep Seriously

Too often, people sacrifice sleep to “get ahead,” only to fall further behind. Employers and employees alike need to recognise sleep as essential for productivity, safety, and mental health—not as a luxury.

If you’ve been dragging yourself through the day, waking unrefreshed, or struggling to stay focused, it may be time to speak with a doctor. Better sleep means sharper thinking, safer workplaces, and healthier lives.

Because in the workplace, running on empty is never sustainable.

How Sove CPAP Clinic Can Help

Founded in 2008, Sove CPAP Clinic has grown to become a leading provider of respiratory and sleep services and products in Australia, with over 60 clinics nationwide. Our comprehensive clinical team includes Respiratory & Sleep Specialists, Sleep Technologists, and CPAP Consultants, ensuring that you receive comprehensive and personalised care. All medical procedures, including sleep studies and lung function testing, are bulk billed to all Australians, with minimal wait time.

If you would like to speak to a Respiratory & Sleep Physician, book a bulk-billed sleep study, or seek advice for your sleep apnea, you can reach us at 1300 76 29 39 or info@thecpapclinic.com.au.

ALWAYS FOLLOW THE DIRECTIONS FOR USE. CPAP is used for Obstructive Sleep Apnea treatment. When considering whether a sleep study or CPAP is right for you, speak to your doctor. Medicare criteria and T&Cs apply.

References

  1. “Asleep on the Job: Costs of Inadequate Sleep in Australia | Special Sleep Reports.” Sleephealthfoundation.org.au, www.sleephealthfoundation.org.au/special-sleep-reports/asleep-on-the-job-costs-of-inadequate-sleep-in-australia.
  2. Australian Institute of Health and Welfare. “Sleep Problems as a Risk Factor for Chronic Conditions.” Australian Institute of Health and Welfare, 26 Nov. 2021, www.aihw.gov.au/reports/risk-factors/sleep-problems-as-a-risk-factor/summary.
  3. “Asleep on the Job: Costs of Inadequate Sleep in Australia | Special Sleep Reports.” Sleephealthfoundation.org.au, 2016, www.sleephealthfoundation.org.au/special-sleep-reports/asleep-on-the-job-costs-of-inadequate-sleep-in-australia?linkId=16163154.
  4. Newsom, Rob, and Heather Wright. “Sleep & Job Performance: Can Sleep Deprivation Hurt Your Work?” Sleep Foundation, 19 Apr. 2022, www.sleepfoundation.org/sleep-hygiene/good-sleep-and-job-performance.
  5. Khan, Mohammad, and Hamdan Al-Jahdali. “The Consequences of Sleep Deprivation on Cognitive Performance.” King Abdullah International Medical Research Center, vol. 28, no. 2, 28 Apr. 2023, pp. 91–99, pmc.ncbi.nlm.nih.gov/articles/PMC10155483/, https://doi.org/10.17712/nsj.2023.2.20220108.
  6. 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. 649–55, www.ncbi.nlm.nih.gov/pubmed/10984335.
  7. Uehli, Katrin, et al. “Sleep Problems and Work Injuries: A Systematic Review and Meta-Analysis.” Sleep Medicine Reviews, vol. 18, no. 1, Feb. 2014, pp. 61–73, www.sciencedirect.com/science/article/pii/S1087079213000087, https://doi.org/10.1016/j.smrv.2013.01.004.
  8. Chong, Zhang. “The Influence of Sleep on Cognitive Function and Mental Health.” Perspective Neurosci. Psych. Open Access, vol. 7, no. 4, 2024, pp. 245–246, www.openaccessjournals.com/articles/the-influence-of-sleep-on-cognitive-function-and-mental-health.pdf, https://doi.org/10.47532/npoa.2024.7(4).245-246.
  9. Saksvik-Lehouillier, Ingvild, et al. “Mild to Moderate Partial Sleep Deprivation Is Associated with Increased Impulsivity and Decreased Positive Affect in Young Adults.” Sleep, vol. 43, no. 10, 19 Apr. 2020, https://doi.org/10.1093/sleep/zsaa078.