AT&T Memo Reveals CEO's Push for Market-Based Culture Amid Declining Employee Engagement

AT&T CEO John Stankey has issued a candid communication to the company's managers, addressing the results of employee engagement survey and reinforcing a cultural shift within the corporation. This memo follows the company's move from a hybrid schedule to a five-day in-office mandate earlier this year.

Stankey's memo highlights the transition towards a "market-based culture" aimed at rewarding capability, contribution, and commitment, as opposed to traditional corporate values centered around loyalty and tenure. He reiterates that employees who prefer hybrid or remote work schedules may find their expectations misaligned with the company's new strategic direction.

The survey revealed that 79% of the respondents feel committed to their work, although overall engagement scores have declined since 2023. In response, Stankey emphasizes that aligning professional expectations with AT&T’s operational goals is essential. If employees struggle to adapt to these new priorities, the memo suggests considering alternative career opportunities more aligned with personal aspirations.

Stankey elaborates on the company’s deliberate shift towards a competitive, market-oriented workforce, moving away from hierarchy and familial cultural norms. He underscores that success in dynamic markets requires disruption, challenging employees to embrace change lest they risk irrelevance.

In reaffirming AT&T's strategic direction, Stankey acknowledges practical challenges that have surfaced since the return-to-office mandate, such as difficulties securing office desks and parking spaces. Despite these challenges, the intent is to create environments conducive to collaboration and effective execution of complex initiatives.

Stankey’s communication style mirrors a broader trend among executives in large corporations who are making direct, unvarnished statements to their workforce. He echoes a sentiment seen across various sectors, where leaders explicitly outline expectations and encourage employees to adapt or risk being left behind.

With transparent career paths, a functional office, and proper tools to perform tasks, Stankey assures that performance metrics will be prioritized over tenure and traditional loyalty. The memo sets an unmistakable tone of urgency for employees to contribute actively to AT&T’s goals, utilizing data-driven assessments to measure employee effectiveness.

AT&T’s strategic shifts, requiring inter-departmental collaboration, are framed within the context of a necessary evolution in corporate culture. Stankey concludes by urging employees to engage proactively and contribute to the transformation effort, which he believes is critical for the company’s long-term success.

Despite the unease that such rapid changes may incite, the expectation of alignment between the company’s direction and employee action remains central in Stankey's message. The memo, a significant disclosure of corporate strategy and culture dynamics, spells out a clear path forward for AT&T as it navigates its evolving journey.