Archive · 27 Jul 2026
Gen Z Driving 'Effort Recession' in Workplaces
More young workers, especially Gen Z, are not putting in extra effort at work beyond their job descriptions.
This is called an 'effort recession.'
A study found that many companies in India, especially in retail, IT, and real estate, are seeing this change.
Gen Z workers want flexibility, learning opportunities, and meaningful work instead of working long hours.
Experts say this isn't a decline in work ethic but a shift in how commitment is shown.
Good leaders who care about their employees can still motivate them to put in extra effort.
63% of Indian organizations reported a decline in discretionary effort, with an average drop of 5%.
Gen Z now makes up 26% of India's workforce and prioritizes flexibility, learning, and wellbeing over long hours.
Retail, IT, and real estate industries are most affected by the 'effort recession', while manufacturing is the least affected.
Discretionary effort is high (99%) when leaders care about employees and low (29%) when they don't.
Experts argue that this shift reflects a redefinition of work ethic, not a decline in commitment.
- Who
- Gen Z employees and various industries in India
- What
- A shift in workplace effort known as 'effort recession'
- When
- Between last year and this year
- Where
- India
- Why
- Gen Z prioritizes flexibility, continuous learning, career progression, meaningful work, and mental wellbeing over long hours and constant availability.
Traditional Work Ethic
Modern Work Ethic
Definition of Work Ethic
Traditional Work Ethic
Work ethic is defined by staying late, always looking busy, and constantly saying yes.
Modern Work Ethic
Work ethic is about thinking deeply, solving problems, collaborating well, and delivering quality outcomes.
Motivation for Extra Effort
Traditional Work Ethic
Employees should be motivated by the expectation to work longer hours.
Modern Work Ethic
Employees are motivated by purpose, trust, meaningful work, and feeling valued.
- Percentage of Indian organisations reporting decline in discretionary effort
- 63%
- Average drop in discretionary effort
- 5%
- Gen Z's share of India's workforce
- 26%
- Industries most affected by 'effort recession'
- Retail (88%), IT and Professional Services (77%), Construction and Real Estate (71%)
- Industry least affected by 'effort recession'
- Manufacturing (44%)
- Discretionary effort with caring leaders
- 99%
- Discretionary effort without caring leaders
- 29%
- Discretionary effort with inspiring leaders
- 98%
- Discretionary effort without inspiring leaders
- 32%