How sleep loss is impacting the workplace: what the data shows us

May 21, 2026

Good sleep and good health go hand-in-hand, but what impact does poor sleep have on workplace performance and productivity? We have some answers.

We partnered with Ipsos to conduct national surveys of 2,000 Canadian employees and 400 employers. Based on this research, our latest report, Wake-up call. The hidden cost of poor sleep – and what we can do about it, provides critical insights into the sleep patterns of Canadian employees, the effects of poor sleep on the workplace, and solutions that can help.

Key findings

Canadian employees face intensifying challenges to quality sleep. This is driven by factors such as rising anxiety and mental health conditions, financial uncertainty, increasing chronic disease, always-on work environments, and excessive screen time.

Our research found that:

  • 46% of Canadians have subclinical insomnia,* a status that poses risks to health and impacts productivity. Individuals with subclinical insomnia are also at risk for progression to clinical insomnia.1
  • 20% have clinical insomnia,** rising to 33% for women experiencing perimenopause/menopause and employees with chronic conditions.2
  • 33% said that poor sleep impacted their work performance (rising to 72% for those with clinical insomnia).3
  • Employees missed an average of 3 days per year due to sleep issues. Those with clinical insomnia missed from 5 to 8 days.4

Workplace supports – the role of group benefits

According to our research, both employers and employees saw group benefits plans as having an important role in supporting employee sleep health. However, the research found that most were unsure of exactly how plans can support healthy sleep.

The research report highlights the many workplace supports that are already available as part of your group benefits plans. By raising awareness of these supports, you have the potential to improve employee well-being, reduce absences and improve overall workplace performance.

We encourage you to read the full report to learn more about the sleep challenges employees face and the solutions that can help.

You can access all of our research reports on our Health Insights page. These reports highlight all the support group benefits plans can provide your employees.

Questions?

If you have any questions, please reach out to your Sun Life Group Benefits representative.

 

*Subthreshold insomnia refers to sleep difficulties—such as trouble falling asleep, staying asleep, or early waking—that are present but do not meet the full diagnostic criteria for insomnia disorder.

** Insomnia is a sleep disorder characterized by persistent difficulties in falling or staying asleep or getting restorative sleep despite having the opportunity to do so. Source: American Academy of Sleep Medicine (AASM) – International Classification of Sleep Disorders (ICSD-3).

1,2,3,4 Ipsos/Sun Life Survey of Canadian Employees, 2025