A global survey of the energy sector identified employee fatigue as responsible for 10% of lost productivity and 12% of quality issues.

The PennEnergy survey, sponsored by Chelmsford, Mass.-based workforce management company Kronos, pegged the average annual company cost at nearly $700,000, or $417 per employee. Smaller companies (fewer than 100 workers) reported a per employee cost of $1,742 per employee, while larger companies (more than 5,000 workers) estimated their average cost at $317.

“Perceptions varied measurably between upper-and mid-level managers,” the report stated. “C-level leaders discount the effects—attributing 10% of productivity and 9% of quality losses to fatigue—when compared to front-line managers—who attribute 14% of productivity and 13% of quality issues to fatigue.”

While 91% of respondents indicated awareness of the effects of excess fatigue and shift work on health, there was less confidence that leaders were aware of the threat. Among C-level respondents, 82% said that organization leaders recognized the threat and impact of fatigue. Only 60% of front-line managers and 57% of other workers agreed this was the case.

Among respondents working for oil companies, 57% believed that leadership had a grasp of the fatigue issue, while 43% believed that leaders were not aware or responded that they were not sure. Among oil service company respondents, the confidence level was higher, with 69% sure that senior executives recognized the threat.

A gap also exists in the perception of the importance of internal fatigue-related guidelines. On a 1-to-10 scale, C-level managers rated the importance of guidelines at 4.8, compared to front-line managers, whose rating averaged 6.6. C-level managers also rated their internal guidelines as more effective (7.7) than front-line managers (6.9).

“It can be reasonably inferred from these findings that C-level managers may be somewhat disconnected from the realities of employee fatigue, particularly when we acknowledge that this survey likely preselects for managers with an interest in employee fatigue,” the report said.