Summary of this article
63 per cent of firms report lower discretionary employee effort.
Gen Z expectations and AI are reshaping workplace engagement.
Leadership trust remains key to boosting employee commitment.
More than six in 10 Indian organisations are finding that employees are no longer as willing to take on work beyond their defined responsibilities, pointing to a growing “effort recession” across workplaces, according to the Great Place To Work India”s latest workplace culture studies.
Employees Doing Less Beyond Their Job Roles
The report has found that 63 per cent of organisations are seeing a decline in discretionary effort, which refers to employees voluntarily taking on work that is not part of their formal role. It has also found that discretionary effort has fallen by 4 per cent since 2023.
Employees complete their assigned work, but fewer are volunteering for additional responsibilities, solving problems outside their roles, or putting in extra hours to support organisational goals, the report said.
Workplace experience has improved in areas, such as employee benefits and the overall work environment. However, those improvements have not translated into stronger commitment or a greater willingness to go beyond what is expected, the report added.
Gen Z Expectations Reshape Workplaces
The report has identified that the growing presence of Gen Z is one of the main reasons behind the shift.
Since 2023, the share of Gen Z employees in India’s workforce has doubled from 13 per cent to 26 per cent across sectors, including IT, banking, manufacturing, healthcare, retail, construction and professional services.
According to the report, younger employees place greater importance on flexibility, meaningful work, transparent career growth and purpose than traditional priorities, such as job stability.
Nearly one in two chief human resources officers have admitted that they do not clearly understand what motivates younger employees. At the same time, 58 per cent have reported that they are preparing their organisations for the growing use of artificial intelligence (AI).
Organisations with a higher proportion of Gen Z employees tend to report weaker perceptions around work-life balance, long-term retention and sense of purpose unless leadership actively addresses those expectations.
AI And Leadership Shape Employee Engagement
Organisations have been introducing AI across their operations while trying to keep employees engaged. Two in five chief human resources officers identified uneven AI adoption across teams as their biggest challenge. Only about one in four organisations could measure AI’s success in business outcomes, such as revenue growth or customer impact.
The study has cautioned that AI can also increase workplace pressure by raising expectations and shortening timelines instead of reducing workloads.
Organisations where employees trust leadership record stronger productivity, innovation, customer satisfaction and agility than workplaces where trust is weaker.
The decline in discretionary effort is strongest in IT, professional services, and construction, infrastructure and real estate. Manufacturing has remained relatively more resilient in maintaining employees’ willingness to go beyond their assigned responsibilities, the report further said.
