AT&T’s CEO, John Stankey, recently made headlines with a candid memo acknowledging that the traditional “employment deal” based on corporate loyalty is over. No longer can employees expect promotions based on tenure, long-term job security, or even flexible work-from-home options. Instead, Stankey says employees should expect only the basics: a functional workplace, clear career paths, and the tools to do their jobs.
This memo reflects a wider shift across North American workplaces, where “management by fear” is replacing long-standing notions of mutual trust. Experts warn that this tough stance risks undermining innovation and driving top performers to leave, especially as AI further reduces headcount and reshapes roles.
The key takeaway? As leaders, we need to reconsider what commitments we offer our teams. In a world where artificial intelligence can handle more tasks, attracting and retaining the best people is crucial—and that requires more than just job security. Open, honest conversations about expectations—and a genuine commitment to employee well-being—will define successful organizations in this new era.