The company they don’t keep

Vikas Kakkar, CEO and Founder of HR tech platform Amara.ai, says young employees, especially Gen Z, are prioritising work-life balance, rather than disengaging since they recognise the risks of burnout. “They are not rejecting work itself; instead, they advocate for a healthier approach that allows them to maintain a personal life alongside their professional one,” he says.

Why are employees disengaged at work?

The Great Detachment is a very real and growing issue, according to Talent Development Advisor Abhijit Bhaduri, citing interactions with Gen Z workers in both the US and India. He says, “There are several reasons, particularly a deep sense of disillusionment with corporate behaviour. Many younger workers have seen their hard work and loyalty being rewarded with sudden layoffs. For example, companies started restructuring after over-hiring during the pandemic. One Gen Z employee had said that the decision to hire was taken by the leaders. If that decision was wrong, the leader should be held accountable. The employee should not be the victim.

Offering a practical perspective, Shivali Chakravarthi, Multi-Generations CRG Leader at Marsh McLennan’s Global Capability Center in India, highlights the importance of adapting to the evolving expectations of Gen Z and younger workers without creating separate policies. “At Marsh McLennan, we cater to five generations in the workforce, so instead of tailoring specific interventions, we’ve developed a broad yet customisable colleague value proposition,” she says, adding that this approach includes bonuses, learning and development opportunities, flexibility, and holistic work-life balance.

For younger employees, who often seek challenging growth opportunities, there are defined career paths and rotation opportunities, while seniors benefit from visibility and platforms to share their expertise.

The cost of detachment

Such disengaged employees are costing the global economy a staggering 8.8 trillion USD in lost productivity, according to Gallup State of the Global Workplace: 2023 Report. The figure represents 9 per cent of the world’s GDP. In 2022, 23 per cent of the global workforce was engaged at work—an increase of two per cent from 2021 and surpassing the previous high of 22 per cent set 2019.