The New Rules of Workplace Devotion

The Evolving Nature of Workplace Loyalty

AT&T CEO John Stankey recently sent a memo to his employees that stood out for its directness. In a 2,500-word message, he acknowledged that the company had moved away from certain elements of loyalty that some might have expected. This admission, though not entirely surprising, was notable for its public and unapologetic tone. It marked one of the clearest attempts by corporate America to redefine the relationship between employers and employees.

The response to this memo was overwhelming. Readers shared their own experiences, many of which reflected a growing sense of disillusionment with the workplace. Some blamed CEOs for prioritizing quarterly profits over employee well-being, while others criticized younger generations for being unwilling to go beyond their job descriptions. A common sentiment emerged: the workplace had become a chaotic environment where trust and goodwill were in short supply.

One reader, a retired auto executive, described how companies often give the illusion of being a "family" at work but quickly discard employees when metrics don’t meet expectations. He also noted that employees, too, were not immune to self-interest, often seeking personal advancement at the expense of colleagues.

This dynamic reflects what management scholars call the psychological contract — the mutual expectations that underpin employer-employee relationships. When these expectations are broken, both sides tend to pull back, leading to a cycle of mistrust and disengagement. Examples of this include college students reneging on job offers and employees skipping the courtesy of a two-week notice.

The result is a workplace that is increasingly devoid of trust and goodwill. Only 31% of Americans reported being engaged at work last year, according to Gallup. CEOs are aware of this issue and are responding with threats of firings and demands for in-office presence, further demoralizing employees and reducing productivity.

Corporate America now faces a choice: continue down the path of dysfunction or take steps to renegotiate the psychological contract with employees. After years of reporting on changing attitudes toward work, it’s clear that reviving loyalty must be part of this process.

The History of Corporate Loyalty

The concept of corporate loyalty dates back to the early 20th century, when industrialization led to harsh working conditions. Companies like AT&T began to recognize the value of treating employees with care. In 1913, AT&T introduced comprehensive benefits, including disability coverage, retirement pensions, and access to company physicians. By the 1920s, the company even provided rest homes for its telephone operators.

This approach proved successful. Employees felt valued, and productivity increased. By the mid-20th century, most major companies followed suit, offering pensions, training, and opportunities for advancement. Job security was virtually guaranteed, and loyalty was mutual.

However, this balance began to shift in the 1980s. Globalization and competition forced companies to adopt more transactional approaches to managing employees. Layoffs became routine, and workers were increasingly viewed as commodities. Today, many companies cut employees off with a single email, treating them as if they were machines to be turned off.

Despite this shift, many employees still hold onto the old idea of mutual care. According to Denise Rousseau, a professor at Carnegie Mellon University, people often give as much as before, even when they receive less in return. It's only when something drastic happens — such as a layoff or poor treatment — that people begin to reevaluate their relationship with their employers.

Real-Life Experiences of Loyalty and Disillusionment

Steve, a longtime AT&T employee, experienced this shift firsthand. Over the years, he watched the company move away from its commitment to employees. He felt betrayed when he was given an ultimatum to relocate, despite having a sick family member. This moment marked a turning point for him, and he eventually left the company.

In contrast, some workplaces still maintain a strong sense of loyalty. Paul, a software engineer at a midsize company, feels genuinely cared for by his employer. His company has never laid anyone off during his three-year tenure, and he feels included in important decisions. Similarly, Gillian Fitzpatrick Alicea, a marketing professional, found her company to be supportive during the pandemic, ensuring no one lost their job or faced pay cuts.

These examples highlight the importance of a culture built on trust and respect. While such environments are rare today, they demonstrate that loyalty can still exist in modern workplaces. For some, it means being transparent, investing in employee growth, and creating a sense of belonging.

Redefining Loyalty for the Modern Era

Loyalty doesn't have to mean lifetime employment. It can mean a commitment to a cause greater than oneself, as philosopher Josiah Royce argued. He believed that loyalty is about devotion to a collective goal, whether it's heroic or ordinary. This broader definition of loyalty could help reshape the workplace.

Psychologists have identified three fundamental needs: existence, relatedness, and growth. Workplace loyalty touches all of these. Job security ensures financial stability, long-term employment fosters meaningful relationships, and opportunities for advancement support personal and professional development.

Today, businesses face the challenge of meeting these needs without promising jobs for life. Could they invest in employees' growth, even if they leave the company? Could they create a culture of respect and honesty?

Some companies are already taking steps in this direction. Meta, for example, has been criticized for blacklisting laid-off employees, while Salesforce offers workers time to find new roles within the company. Remote startups also prioritize building connections through off-sites, fostering a sense of community beyond just meetings.

A New Approach to Loyalty

Tatiana Finkelsteyn, a serial entrepreneur, exemplifies this new approach. At her first startup, IQ Wired, she emphasized long-term employment, with many employees retiring there. At her current company, zLinq, she maintains a strong commitment to her staff, focusing on transparency and maintaining relationships even after employees leave.

Her approach has yielded positive results, with high retention rates and strong employee engagement. Finkelsteyn believes that loyalty doesn't have to mean forever — it just has to mean for real.

Many professionals, like Steve, want to do great work and believe in their companies. The outcry over AT&T's memo reflects a deep longing for connection and purpose. As organizational psychologist Denise Rousseau notes, people are "little atoms that aren't producing something that has benefit beyond our existence." They seek a sense of belonging and meaning.

Josiah Royce's vision of loyalty remains relevant today. He warned against the individualism that was sweeping the country and called for a renewed commitment to mutual respect. His ideas, once considered radical, are now more important than ever as businesses navigate the challenges of the modern era.

Ultimately, the future of the workplace depends on employers taking the first steps toward rebuilding trust and fostering a culture of loyalty. While the path may be uncertain, the potential for a more meaningful and productive relationship between employers and employees is within reach.