BU's Nash says most workers approaching middle age still value stability and predictability. Nash and others also question the impact this new contract will have on corporate culture. If you're constantly mixing and matching people from the inside and the outside, you're bound to have more cultural clashes. And, despite employer protestations to the contrary, Nash says the new covenant, if not well-executed, can leave people perpetually nervous about their livelihoods, creating an atmosphere of mistrust and mediocrity. You keep a low profile, because if you step out, you're likely to be noticed.
Critics also question what employers gain from a covenant that torpedoes loyalty.
But little blind allegiance remains in environments where workers know their jobs could disappear overnight. The new deal works best when both sides pledge to honor whatever agreement they forge for as long as it lasts rather than to be bound to each other for life. With the loss of loyalty come issues of competitive intelligence, of particular concern to IS departments. Proponents call that risk a necessary trade-off for getting rid of the lifetime job warranty. And executives at several new-covenant organizations say that, so far, defections are rare because employees value the open atmosphere and new opportunities.