The era of employees doing more than what their job demands may be fading fast in corporate India.
A new workplace trend called “effort recession” is taking shape, with nearly 63% of Indian organisations saying employees are no longer willing to put in discretionary effort; the extra work beyond formal job responsibilities that often drives innovation, customer service and business growth.
The findings come from Great Place To Work India’s latest studies, India’s Best Companies To Work For 2026 and India’s Great Mid-size Workplaces 2026.
Together, the studies covered feedback from more than 5.7 million employees across over 20 industries.
The reports found that discretionary effort has fallen 4% since 2023, suggesting the trend is becoming stronger.
In simple terms, employees are still doing the work they are paid for. But fewer are volunteering for extra responsibilities, staying late, solving problems outside their role or pushing themselves simply because they care about the company’s success.
Interestingly, the report says this is not because workplaces have necessarily become worse.
Benefits have improved in many companies and employee experience has become better. But that has not translated into greater commitment.
As the report puts it, work may be becoming a better place to be, but not always a stronger reason to strive.
A major factor behind the shift is the rise of Gen Z.
Since 2023, the share of Gen Z employees in India’s workforce has doubled from 13% to 26%.
Younger workers are entering industries ranging from IT and banking to manufacturing, healthcare, retail and professional services with different expectations.
Flexibility, meaningful work, transparent career growth and purpose often matter more to them than traditional job stability.
This has created a challenge for employers.
Nearly half of CHROs admitted they still do not fully understand what motivates younger employees. More than 58% said they are trying to manage the rise of Gen Z while also dealing with the impact of artificial intelligence.
AI is adding another layer of pressure.
Two in five CHROs said uneven AI adoption across teams and functions was their biggest challenge. At the same time, only about one in four organisations measure AI success through actual business outcomes such as revenue growth or customer impact.
The report warns that AI can also create fresh tensions at work.
Faster tools can lead to more assignments, tighter deadlines and higher expectations, leaving employees feeling that technology is increasing pressure rather than reducing it.
The research suggests the answer is not more perks or stricter performance targets.
It is leadership.
Companies where employees have strong trust in leaders reported much better outcomes, including higher productivity, greater agility, more innovation and stronger customer appreciation.
Workplaces with caring and inspiring leaders also performed better in retention, recruitment, customer service and discretionary effort.
The decline is not equal across all sectors.
The trend is reportedly strongest in IT, professional services, construction, infrastructure and real estate.
Manufacturing has been relatively more resilient and has managed to retain a greater willingness among employees to go beyond assigned duties.
The message for Indian companies is clear.
Technology can make employees faster. AI can automate routine work. But neither can force people to care more.
In the coming years, the real advantage may belong to companies that can make employees genuinely want to contribute beyond the minimum.
