What is ‘effort recession’?

5 min readNew DelhiJul 27, 2026 11:00 PM For decades, many workplaces rewarded employees who stayed late, answered emails after office hours and regularly took on responsibilities beyond their formal job descriptions. Going the extra mile was often seen as a marker of dedication and ambition. But that expectation appears to be shifting as younger professionals rethink what commitment looks like, while artificial intelligence continues to transform how work gets done.
A new Great Place To Work India 2026 study suggests this shift is becoming increasingly visible through what it calls an “effort recession,” which is a growing reluctance among employees to consently put in discretionary effort, or work that goes beyond their defined responsibilities. According to the report, 63% of Indian organisations (240 out of 380 surveyed) reported a decline in discretionary effort between last year and this year, with the average drop at 5%. The report defines discretionary effort as staying late without being asked, stepping in to solve problems outside one’s job description or voluntarily taking ownership beyond assigned responsibilities — the difference between simply showing up and truly stepping up.
DISCLAIMER: This article is based on information from the public domain and/or the experts we spoke to. Always consult your health practitioner before starting any routine.
The study also highlights that Gen Z now accounts for 26% of India’s workforce, nearly doubling its share since 2023, and is increasingly prioritising flexibility, continuous learning, career progression, meaningful work and mental wellbeing over long hours and constant availability. At the same time, AI is changing traditional ideas of productivity.
The report further notes that industries are experiencing this shift differently. Retail has been hit the hardest, with 88% of companies reporting a decline in discretionary effort, followed IT and Professional Services (77% each) and Construction and Real Estate (71%), while Manufacturing has been the most resilient, with only 44% of organisations reporting a decline. It also found that when employees believe their leaders genuinely care about them, discretionary effort reaches 99%, but falls to 29% when that sense of care is absent, while 98% describe discretionary effort when leaders are inspiring, compared with 32% when they are not.
Together, these findings raise an important question: Is the so-called ‘effort recession’ a sign of declining work ethic, or does it reflect a healthier recalibration of workplace expectations? We asked an expert to explain.
Redefining work ethic
Gurleen Baruah, Organisational Psycholog at That Culture Thing, tells , “It really depends on how we define work ethic. If work ethic means staying late, always looking busy, and constantly saying yes, then yes, that definition is changing. But if work ethic means thinking deeply, solving problems, collaborating well, and delivering quality outcomes, then I don’t think work ethic is declining.”Story continues below this ad
She adds that younger employees, especially Gen Z, are questioning performative busyness. They want their effort to have meaning and impact, not simply be visible. Technology has also changed how work gets done. Many are saying, “Judge me the value I create, not the number of hours I’m seen working.” That’s a shift in how commitment is expressed, not necessarily a decline in commitment itself.
What motivates employees to go the extra mile?
All of these factors are playing a role. Baruah says that AI is changing the nature of work, especially entry-level roles, making productivity less about hours spent and more about how people think, solve problems, and use technology well. Remote and hybrid work have also blurred the boundaries between work and personal life, making people more deliberate about protecting their time and energy.
“Greater awareness of burnout and mental health has encouraged employees to question whether constant overwork is sustainable. People are still willing to go the extra mile, but they first want to know why that extra effort matters. Purpose, trust, meaningful work, and feeling valued are far stronger motivators today than simply being expected to work longer hours,” mentions Baruah.
Leadership that drives engagement without burnout

Quick Quiz
See if you can answer this:Story continues below this ad
What is the foundation of a workplace culture that drives engagement without burnout?
A. Rewarding employees who consently work the longest hours.
B. Motivating teams primarily through ambitious vision statements.
C. Leaders consently recognising outcomes, collaboration and quality of work while building trust and psychological safety.
D. Expecting managers to focus mainly on client demands rather than employee wellbeing.

▼ Reveal the answer
✅ Correct answer: C
Healthy workplace cultures are created leaders’ everyday actions—not just their words. Employees notice what gets rewarded, reinforced and ignored. Recognising outcomes, collaboration and quality of work, while equipping managers with coaching, emotional intelligence, constructive feedback and trust-building skills, creates an environment where people can perform well without believing that overwork is the only route to success.Story continues below this ad

DISCLAIMER: This article is based on information from the public domain and/or the experts we spoke to. Always consult your health practitioner before starting any routine.