Key Takeaways:
- Workplace fatigue leads to more injuries, slower reaction times and rising workers’ comp claims, but many businesses don’t recognize the full impact.
- Simple strategies like smarter scheduling, fatigue training and monitoring high-risk jobs can help reduce claims and improve workplace safety.
- Agents can add value by helping clients recognize fatigue as a financial risk, not just a workplace inconvenience.
A workplace hazard hiding in plain sight
Most business owners recognize obvious safety risks — faulty equipment, hazardous materials or improper lifting techniques. But one of the biggest threats to workplace safety and productivity isn’t always visible: fatigue.
It’s not just about feeling tired. As a major contributor to workplace accidents, slower reaction times and poor decision-making, fatigue costs U.S. businesses $136 billion annually in lost productivity.
Workplace fatigue often flies under the radar, but for businesses, it’s a key factor driving claims and long-term expenses. Helping clients recognize and address it can make a real difference in both workplace safety and their bottom line.
Related: A comprehensive guide to mastering DART rates
The hidden costs of fatigue in the workplace
Fatigue-related risks don’t always look like traditional workplace hazards. Instead, they creep in over time, making small but costly impacts on everything from accident rates to employer liability. It’s estimated that fatigue is responsible for 13% of workplace injuries every year.
Yet it’s no surprise when you look at the numbers. A 2003 study found that night shift workers are three times more likely to get hurt compared to day shift workers. Their reaction times slow, their focus drifts and mistakes happen. But because workplace fatigue is rarely tracked, accidents get blamed on ‘human error,’ leaving employers unaware of the real risk.
The fatigue factor
A sleep-deprived worker isn’t just sluggish, they’re impaired. According to the National Safety Council, missing just two hours of sleep has a similar impact on reaction time and judgment as drinking three beers. Now imagine that worker behind the wheel of a truck, operating heavy machinery or managing a job site. One misstep can mean a multi-million-dollar claim — and it happens more often than many businesses realize.
The productivity illusion
Pushing through exhaustion might seem like dedication, but each tired worker costs employers between $1,200 and $3,500 per year. Workers experiencing chronic fatigue are more likely to struggle with concentration, miss deadlines and make costly errors, all of which impact a company’s bottom line. And the longer the hours, the more errors pile up.
The problem isn’t just fatigue itself, it’s that employers don’t realize how much it’s costing them.
What clients can do to reduce fatigue risks in the workplace
Workplace fatigue isn’t a problem employers can solve overnight, but with the right adjustments, they can significantly reduce its impact on safety, productivity and insurance costs.
Here’s where they can start:
Rethink scheduling
The longer the shift, the higher the risk. Studies show that employees working 12-hr shifts are twice as likely to make fatigue-related errors compared to those on 8-hour shifts. Businesses that set realistic overtime limits and stagger shifts strategically can help prevent burnout before it leads to costly mistakes.
Train workers to recognize workplace fatigue
Most employees don’t realize how much lack of sleep impacts their performance. That’s a problem — especially since only 40% of employers provide fatigue management training. Teaching workers to recognize early signs of fatigue can help prevent accidents before they happen.
Monitor high-risk jobs
Some roles come with higher stakes. Equipment operators, commercial drivers and other safety-sensitive workers should be screened for workplace fatigue as part of routine safety checks. Encouraging businesses to track fatigue-related near misses can also help spot problem areas before they turn into serious claims.
Related: A practical guide to reducing on-the-job injuries
How you can help clients see the big picture
Fatigue is easy to overlook. It doesn’t show up in an incident report like a broken machine or a missed safety protocol. But it’s there — in slower reaction times, miscalculations and accidents that seem like flukes. And if businesses aren’t paying attention to it, they’re likely paying for it in other ways.
As an agent, you’re in a unique position to help clients recognize patterns they might be missing. When fatigue contributes to workplace injuries, it’s not only a safety concern; it’s also a financial risk that affects claims costs and overall business performance.
Related: How to help your clients achieve lower workers’ comp rates
Bringing this into the conversation isn’t about pointing out problems. It’s about offering a proactive, strategic approach — one that helps your clients reduce claims, improve productivity and build a safer, more resilient workforce. That’s the kind of insight that sets you apart.