Video transcript:
AT&T CEO John Stankey had an interesting reaction to the company’s recent employee engagement survey. While 79% of 99,000 respondents said they are committed and engaged with their work, Stankey had a clear directive for the 21% who reported low commitment and low engagement.
That directive: Embrace the new company demands or find another place to work.
Stankey joins CEOs of companies including Amazon, Goldman Sachs, UPS, Starbucks and Boeing in requiring a five-day-a-week return to the office.
Stankey’s viral memo made clear that AT&T’s workplace transitions are a shift away from loyalty and a shift towards a “market-based culture, focused on rewarding capability, contribution and commitment.”
Maybe Stankey is onto something here. AT&T’s shares have risen 21% this year, so investors are certainly on board with these changes. Performance has exceeded Wall Street analysts’ expectations these past two quarters.
Our assessment is that these positive results may not last. The problem is that younger generations are not inspired exclusively by “capability, contribution and commitment.” Deloitte’s 2025 Gen Z and Millennial Survey found that Gen Zs and millennials are focused on work/life balance, learning and development, financial security, meaning and well-being.
Loyalty is not as important to Gen Zs and millennials. They’ll change jobs frequently if they feel those companies do not value their drive for work/life balance, learning, meaning and well-being. And these younger generations are not going away. Deloitte estimates that millennials and Gen Zs will make up two-thirds of the workforce by 2030.
Will AT&T’s new culture of rewarding capability, contribution and commitment attract and retain Gen Z and millennial talent? Time will tell.
Opinions expressed by SmartBrief contributors are their own.
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