Why sleep hygiene matters for employee productivity and wellbeing

Written By Matthew Stanton

Sleep is one of the most powerful, yet overlooked, contributors to workplace performance and psychological wellbeing. In today’s fast-paced work environments, poor sleep has become a widespread issue with serious implications for health, safety and productivity.

So what exactly is sleep hygiene, and why should employers prioritise it?

By Matt Stanton, Clinical Psychologist at Life Matters 

What is sleep hygiene?

Sleep hygiene refers to a set of habits, behaviours and environmental conditions that support good quality, restful sleep. These practices influence how quickly a person falls asleep, how often they wake during the night, and the overall quality of their rest.

Examples of healthy sleep hygiene include:

  • Keeping a consistent sleep–wake schedule

  • Avoiding screens and caffeine before bed

  • Creating a quiet, dark and comfortable sleeping environment

  • Managing stress or anxiety before bedtime

Sleep hygiene can be undermined by shift work, long hours, chronic stress or mental health challenges, all of which are common in modern workplaces.

Common sleep problems affecting Australian workers

According to the Sleep Health Foundation, approximately 33–45% of Australian adults experience poor sleep that affects their daytime functioning.

For employees, this can manifest as:

  • Insomnia: difficulty falling or staying asleep

  • Delayed sleep phase, which is especially common in shift workers

  • Sleep disturbances due to anxiety or work-related stress

  • Sleep apnoea or other undiagnosed sleep disorders

Left unaddressed, these issues don’t just affect personal health. They also show up at work in measurable ways.

How poor sleep affects workplace performance

Lack of restful sleep takes a toll on cognitive function, emotional regulation and physical energy.

In a workplace setting, this can lead to:

Impaired concentration and decision-making

Sleep-deprived employees are more likely to make mistakes, miss details and struggle with decision-making. This is especially concerning in roles that involve safety or high-stakes choices.

Increased risk of accidents and injuries

Fatigue is a major contributor to workplace accidents, particularly in transport, construction and healthcare. In fact, being awake for 17 hours can impair performance as much as a blood alcohol concentration of 0.05.

Reduced creativity and problem-solving

Cognitive flexibility and innovation drop significantly when workers are tired. Teams may struggle with brainstorming, collaboration or adapting to new challenges.

Higher absenteeism and presenteeism

Employees with chronic sleep problems are more likely to miss work or show up exhausted and disengaged, leading to reduced overall productivity and morale.

How employers can improve sleep hygiene at work

Sleep is essential for improved situational awareness to improve workplace safety, so needless to say, oganisations have an important role to play in supporting sleep health, and can contribute to fatigue management through sleep improvement training.

Here are several strategies:

Provide sleep health education

Run workshops or wellbeing sessions that explain the importance of sleep hygiene. Include practical tips and information about when to seek professional help.

Address workload and stress

Chronic stress is a key barrier to sleep. Employers can reduce the risk by improving workload management, offering Employee Assistance Programmes (EAPs), and addressing psychosocial risks through proper assessments.

Encourage breaks and movement

Physical activity during the day can help regulate sleep patterns. Encourage walking meetings, regular breaks or on-site fitness initiatives.

Offer flexible scheduling where possible

For shift workers or those balancing family obligations, flexibility can support more regular sleep patterns and reduce fatigue-related risk.

Promote evidence-based interventions such as CBT-I

One of the most effective treatments for insomnia is Cognitive Behavioural Therapy for Insomnia (CBT-I). This structured, short-term psychological approach helps individuals:

  • Identify and change thoughts and behaviours that disrupt sleep

  • Build a consistent sleep schedule

  • Reduce anxiety around bedtime

Unlike sleeping tablets, CBT-I has long-term benefits and is recommended by the Sleep Health Foundation and international clinical guidelines as a first-line treatment.

Employers can support CBT-I by including it in EAP offerings or referring employees to trained psychologists.

Conclusion

Sleep is not a luxury. It is a foundational pillar of mental health and productivity. By promoting better sleep hygiene, organisations can reduce fatigue-related risks, improve performance, and create a healthier, more resilient workforce.

For Newcastle businesses, incorporating sleep education into wellbeing programmes or leadership training is a smart step towards building a mentally fit workplace.

Further reading

Life Matters Disclaimer

All content in our article is published for informational purposes only. It is not intended to be a substitute for professional psychological advice and should not be relied on as personal advice. Always seek the guidance of a qualified psychologist with any questions you may have regarding your mental health.  

Sources 

If you need some support or help – Give us a call or book now.

Matthew Stanton

Matthew is a clinical psychologist with 25 years’ experience who specialises in workplace wellbeing, sleep health, and men’s health.

https://www.lifematters.com.au/matthew-stanton
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