Whatever happened to loyalty?

Wharton Business School aptly dubs the decline of loyalty, ’Shock and Awe for American Workers.’ There was a time when business owners didn’t escort employees out with a guard minutes after delivering news of their dismissal. If laid off for economic reasons, you would be rehired as soon as the economy bounced back. A symbiotic relationship fostered a social contract between management and workers. Skilled laborers who remained faithful to employers throughout their working years earned a decent wage and a pension in return for their hard work.

These fortunate people came of age after World War II when the collective mindset of ‘we’ was crucial to winning the war and dominating world trade. Job hopping was considered a taboo practice and a red flag for recruiters. Businesses encouraged employees to build lifelong relationships.

When you converse with a young worker today, you’ll notice their mindset is different. It primarily focuses on ‘I” rather than the collective. Youth prioritize individual rights, giving less thought to the broader society. They are engaged in a workforce that has doubled since 1970 because it now takes two earners to support a family, and older adults remain in the workforce longer. The shift in mindset had its seeds in the 1970s when economic issues led to widespread downsizing, forcing workers to compete for scarce job opportunities. It was a pivotal time, leading to a breakdown in the relationship between employees and employers. The result was reduced salaries, retirement benefits, healthcare, and other perks.

The rise in automation, technology, and globalization, coupled with the decline of unions, bolstered corporate power. In the new landscape, stockholders began to take precedence over other stakeholders, including customers and workers. The downsizing wave of the ‘70s escalated in the 1980s and 90s, with employers showing little interest in rehiring when the economy rebounded.

In today’s economy, new hires hesitate to commit themselves to a company, fearing the potential hurt it will cause when let go. They constantly  worry that each day might be their last and receive low salaries and minimal benefits under incompetent leaders who don’t recognize their accomplishments. Unsurprisingly, the American workforce is on the move, seeking greater flexibility in work schedules, more caring managers, and a better work-life balance.

The average number of jobs an individual has during their lifetime has skyrocketed to twelve, with twenty-nine percent changing fields completely. The change in the work environment since 1950 is dramatic. American workers are older, better educated, and more diverse in race and gender. Employment opportunities shifted to higher-skilled occupations, making it difficult for those with lower levels of education to find jobs. A staggering thirty-nine percent of college students are over twenty-five, further highlighting the instability in the job market and the search for meaning in work. When younger workers change careers, they look for more than a pay raise. They seek jobs that benefit the world, such as dealing with environmental concerns, healthcare, or helping underprivileged communities.

I worry about my grandchildren and whether they feel valued and if they will live fulfilling lives. Will they find challenges that will help them grow? Do they think their employment is worthwhile, and can they see how it fits into the fabric of human endeavors? Is their job stable enough to purchase and maintain a car and home without fear of losing them? And, will their salaries allow them to save enough to retire comfortably?

As shareholders pour money into AI, Robotics, and other advanced technologies, they should consider how the typical worker will manage in a world that doesn’t need them. Will it lead to more people without jobs living on the streets, and who will support them?

As a consumer, I wonder how long it will take before customers rebel at messages like,”We are experiencing a longer than usual wait time; go to our website for answers.” I am tired of being told to dial one for new service, two for parts, three for hours of operation, until ten when I’m directed to go online and talk to a chat operator. When fortunate enough to speak to a human being after waiting a half hour. In that case, the voice is heavily accented, incomprehensible, or the person doesn’t know the answer to my question.

How dehumanizing can businesses get? These practices certainly aren’t a way to retain a loyal customer, yet workers and consumers let it happen and accept impersonal treatment in the workplace and while shopping. Is more of this all we have to look forward to in a future with AI, or is it time to speak up and put an end to it?

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Please share your experience about workplace loyalty in the comment area below.

In The Water Factor, the protagonist rejects his parents’ advice to study medicine or law. He attends a job fair, where he is convinced that water is the future growth industry,  and access to it will be the most significant issue his generation will confront. When he takes a job as a truck driver, delivering water to rural communities, he sees how far corporations will go to deprive people of a resource that was rightfully theirs. Young graduates would do well to examine the ramifications of the work they sign up to do.

The Water Factor is a Firefly International Award-winning novel in paperback, ebook, and audiobook versions on AMAZON, Barnes and Noble, Audible, and iTunes.

References:

Podcast (2017) The End of Loyalty: Shock and Awe for Many American Workers. Knowledge at Wharton. Retrieved from https://knowledge.wharton.upenn.edu/podcast/knowledge-at-wharton-podcast/the-end-of-loyalty-shock-and-awe-for-many-american-workers/

Website (2024) 17 Remarkable Career Change Statistics to Know. Apollo Technical. Retrieved from https://www.apollotechnical.com/career-change-statistics/

Naranjoy, A. & Vizcaino, J. (2017) Shifting Times: The Evolution of the American Workplace. Federal Reserve Bank of St. Louis. Retrieved from https://www.stlouisfed.org/publications/regional-economist/fourth-quarter-2017/evolution-american-workplace

Website (2024) Employment Trends by Generation: How Often Do People Change Jobs? PeoplePath. Retrieved from https://peoplepath.com/blog/employment-trends-by-generation-how-often-do-people-change-jobs/

Lisa, A. (2019) 60 Ways the Workforce has Changed in 50 Years. Stacker. Retrieved from https://stacker.com/business-economy/50-ways-workforce-has-changed-50-years