Mar 17 March Madness Could Cost Employers $12.1B
Workers May Use March Madness for a Much-Needed Respite
After the post-pandemic labor force enjoyed unprecedented leverage, employers spent the last year forcing workers back to the office, abandoning inclusion principles, or laying people off and threatening to replace them with AI. For workers, March Madness may be the perfect event to even the score, costing employers $12.1 billion, an increase of $2.5 billion from 2024, according to an analysis of new data from outplacement and executive coaching firm Challenger, Gray & Christmas.
Despite fewer employed workers and a lower employment-population ratio from a year ago, according to the Bureau of Labor Statistics (BLS), high wages and absenteeism contributed to the higher estimate.
“It wouldn’t be shocking to hear that morale is low in any given organization,” said Andrew Challenger, workplace and labor expert and Chief Revenue Officer of Challenger, Gray & Christmas.
“As employers attempt to navigate increased uncertainty, and especially if layoffs or other deep cost-cutting measures have occurred, March Madness is a wonderful vehicle to lighten the mood and reengage potentially burnt-out workers,” he added.
“March Madness offers the chance for camaraderie that can revive the workplace. Office pools, watch parties, and department bracket challenges can not only create in-office excitement for fans, but can also connect remote workers with their colleagues. Add in lunch and coffee, and employers can make it a reason workers will want to come to the office,” said Challenger.
Although higher wages reported by the BLS may put a strain on employers’ bottom lines, the firm argues that the boost in employee engagement and morale that comes with the tournament could more than make up for those added costs.
For organizations still recovering from recent layoffs, March Madness provides a much-needed outlet to ease the anxiety and uncertainty employees often feel in the wake of workforce reductions.
To get the most out of the season, Challenger advises companies to set up dedicated spaces where employees can watch games, discuss brackets, create competitions with meaningful prizes to drive participation, and invite staff to show off their team pride through their attire. Simple as they may seem, these gestures go a long way in energizing the workplace, building camaraderie, and reinforcing the kind of collaborative culture that keeps teams both motivated and connected.
Challenger offered the following tips to use March Madness to build morale:
- Designate a workstation to stream games and give workers time to watch in the break room with colleagues.
- Choose one game the entire office can watch live at the same time, both in-person workers and remote teams.
- Offer an incentive for workers to fill out and share their brackets, such as a charitable donation, and increase the amount if a large percentage of the company participates. Workers vote on the charity.
- Offer individual prizes for top brackets, like gift cards, lunches, coffees, experience gift, or even PTO.
- Include one bracket for each department for a team prize.
- Encourage workers to wear team gear to both in-person and remote meetings.
About the Estimate
According to Challenger, this year’s tournament could cost employers $12.25 billion. The firm’s estimate is based on:
–68 million adults who plan to wager on the games, according to 2023 figures from the American Gaming Association.
-Using the employment-population ratio of 59.3% in February 2026 (down from 60.1% in February 2024) that means approximately 40.3 million working Americans are likely to be caught up in March Madness.
-Of those, 26% will call off work to watch games, according to a 2024 survey from OnePoll on behalf of Tipico Sportsbook, which would cost $2,644,997,617.
-The average hours worked per week, according to the BLS, was 33.8 in February or 6.76 hours a day.
-A 2019 survey by OfficeTeam, the latest available data, found workers spend 25.5 minutes per workday on average on March Madness-related activities during the tournament. If that holds true this year, across the 15 workdays between selection Sunday on March 15 and the championship game on Monday, April 6, workers will spend 382.5 minutes, or 6.4 hours, on March Madness-related activities at work. Subtracting the workers who call in sick a day, that would mean the tournament could cost employers conservatively $9,440,799,314.
Adding this number to the number of workers who would call in absent for a day of the tournament, the total cost is $12.1 billion.
“It’s difficult to gauge the real extent of productivity loss due to March Madness. Some workers report spending up to two hours watching games on the days when afternoon games are played. Workers love March Madness, and though it may cost employers in productivity, they should embrace this opportunity for real human connection,” said Challenger.
Key March Madness Stats
68 Million
Number of adults who plan to place a wager on March Madness outcomes and fill out brackets, according to a 2023 survey from American Gaming Association.
59.3%
Employment Population Ratio according to February 2026 employment situation from the Bureau of Labor Statistics.
$1.5 billion
Lost wages resulting from the possibility 40,324,000 employed people (68 million X 59.3%) spending at least one hour of one workday on March Madness activities (40,324,000 X $37.32)
$2,644,997,617
Cost to employers of 10,484,240 workers calling in sick for an average workday of 6.76 hours to watch the tournament.
$12,085,796,931
Cost of lost productivity from the entire tournament.
EMPLOYMENT/WAGE STATS
162,912,000 Preliminary total of nonfarm payroll employment in February (BLS), down 426K from February 2025
Average hourly earnings: $37.32 According to February 2026 preliminary data from the Bureau of Labor Statistics, up from $35.94 in the same month last year.