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AT&T Boss Declares End of "Employment Deal" with Workers
7 Aug
Summary
- AT&T CEO John Stankey's blunt memo to managers goes viral
- Stankey acknowledges shift from "familial" to "market-based" corporate culture
- Employees no longer expected to receive lifetime job security or loyalty
Last weekend, a 2,500-word memo from AT&T CEO John Stankey to his managers went viral, sparking a debate on the changing relationship between employers and employees in corporate America. In the memo, Stankey acknowledges the company's shift from a "familial" culture that took care of its workers to a more "market-based" approach, where loyalty and lifetime job security are no longer the norm.
Stankey's message is a clear attempt to rewrite the terms of the workplace, explicitly telling employees what they can and cannot expect from the company. He dismisses the idea of an "employment deal" rooted in loyalty, stating that AT&T has "consciously shifted away from some of these elements." Instead, Stankey outlines a more transactional relationship, where workers are expected to demonstrate commitment in exchange for basic amenities like a "functional facility" to work in.
The memo's blunt tone and lack of room for negotiation have drawn criticism from experts, who argue that Stankey is not so much creating a new psychological contract as he is simply ending the old one. By using militaristic language and veiled threats of "irrelevance," Stankey is trying to scare employees into working harder, a strategy that research has shown to be counterproductive in the long run.
As companies grapple with the changing dynamics of the workplace, Stankey's memo serves as a stark reminder that the days of the "employment deal" rooted in loyalty are long gone. The challenge now is for corporations to find new ways to inspire and retain their most valuable asset: their employees.
