AT&T CEO John Stankey recently sent a 2,500-word memo to his managers, which sparked widespread attention and criticism. In the memo, Stankey bluntly told employees that they should stop expecting loyalty from the company, as the days of lifetime job security and pensions are long gone. The move has been seen as a stark departure from corporate norms, with many arguing that it reflects a shift towards a “management by fear” approach.
Stankey’s memo is significant because it marks one of the first times a major CEO has explicitly stated their company’s stance on loyalty in the modern workplace. In essence, Stankey is saying that employees should expect to be treated as temporary workers, rather than being part of a family. He also emphasizes the need for employees to commit to the company without expecting rewards or benefits.
However, critics argue that this approach will backfire, as it fails to address the fundamental issue of employee dissatisfaction. Many believe that the current state of work is driven by the erosion of traditional employer-employee relationships, rather than simply a matter of individual employees being complacent.
One expert, Denise Rousseau, notes that Stankey’s memo lacks a clear plan for how employees will be motivated and rewarded. “He isn’t creating a new psychological contract — he’s just ending the old one,” she says. This approach has been criticized by many as a simplistic and unrealistic solution to a complex problem.
Stankey’s comments have also raised concerns about the potential impact on employee morale and retention. With many employees feeling undervalued and disconnected from their companies, it is unlikely that simply being told to commit without expecting rewards will be enough to inspire loyalty.
The issue of psychological contract in the workplace remains a pressing concern for many employers and employees alike. As AI continues to transform the nature of work, it is essential to re-examine the fundamental principles of employer-employee relationships.
Ultimately, Stankey’s memo serves as a wake-up call for companies to rethink their approach to employee motivation and engagement. Rather than relying on fear-based tactics, businesses must find innovative ways to inspire loyalty and commitment from their employees.
As one expert pointed out, the key to successful employee motivation lies in creating a compelling reason to make an effort. In today’s economy, this means providing attractive benefits, flexible work arrangements, and a clear sense of purpose. By doing so, companies can foster a culture of trust, collaboration, and loyalty that will inspire employees to give their best work.
The future of work is uncertain, but one thing is clear: it requires a new approach to employer-employee relationships. As the white-collar recession continues, employers must adapt and evolve to meet the changing needs of their workers.
Source: https://www.businessinsider.com/att-ceo-memo-workplace-loyalty-dead-employees-job-security-2025-8