In today’s corporate world, the notion of a meritocracy is often bandied about as the foundation of success. However, the harsh reality suggests that, increasingly, it’s not the hardworking or talented individuals that are rewarded, but rather the companies prioritizing short-term profits over the well-being of their people. According to Simon Sinek, the shift towards this model has far-reaching implications, influencing corporate culture, employee loyalty, and, most importantly, the way we perceive work itself.
The Rise of Short-Termism
The rise of short-termism in the corporate world marks a fundamental shift in how companies view success. Historically, corporations, especially in the post-war era, adopted long-term strategies where growth was gradual, and companies took a patient approach to investments, innovation, and workforce development. This strategy, while slower, built a strong foundation of employee loyalty and consistent business expansion. However, the 1980s ushered in a dramatic change in the business landscape, particularly as globalization and the rise of financial markets reshaped corporate priorities.
The relentless drive to meet quarterly earnings reports has led many executives and boards to prioritize short-term profits over long-term sustainability. Shareholders, armed with short-term goals, began pressuring companies to maximize their quarterly results, with little regard for the broader, long-term vision of the organization. This shift has led to a corporate culture where decisions are made based on immediate financial outcomes, often disregarding the investments needed to build a more stable and resilient business in the future.
A prime example of the consequences of this shift is the way companies now handle mass layoffs. The idea that a company could regularly cut its workforce to appease stockholders or to meet financial goals was virtually unheard of before the 1980s. Mass redundancies were seen as a last-resort measure, only implemented during periods of economic crisis. Today, however, it has become a normalized practice. In fact, the announcement of layoffs often causes a surge in a company’s stock price, which is a stark contradiction to what the company should be prioritizing—namely, the people who contribute to its long-term success. Similarly, when a company invests heavily in research and development, which could drive future growth, the stock price tends to drop, signaling that the market values short-term profitability more than sustainable innovation.
The Erosion of Job Security
The erosion of job security is one of the most damaging consequences of short-termism in the workplace. Decades ago, employees could expect to join a company and spend their careers there, with the understanding that job security and career development were part of the deal. Companies would offer pensions, health benefits, and promises of long-term employment in exchange for loyalty and hard work. In return, employees would dedicate themselves to the success of the company. This symbiotic relationship was not perfect, but it fostered stability and mutual respect.
However, as companies began prioritizing profits and stock performance, the notion of job security began to unravel. No longer could employees trust that their position would remain stable over the long haul. The rise of mass layoffs, outsourcing, and automation has made job security feel like an illusion, especially for younger workers. For those under 40, the idea of working for a single company for an entire career is foreign—almost laughable. Young workers have witnessed the unpredictability of job markets firsthand, with many of them seeing their parents or close family members laid off due to financial cuts or restructuring, sometimes through no fault of their own.
This shift in the job market has caused a fundamental change in employee expectations. Today, younger employees are no longer willing to work hard for the promise of rewards in the distant future. They demand compensation upfront, knowing that their job may end at any moment due to the volatile nature of corporate decisions. This is not a sign of entitlement or laziness but a rational response to a new reality where employees are dispensable and their loyalty often goes unrewarded.
The traditional employer-employee compact—where the employer promises security and long-term growth in exchange for loyalty—is effectively broken. Companies no longer honor the same commitment to their employees, leading many workers to adopt a mindset of self-preservation. They are not prepared to invest years of hard work without tangible returns, and who can blame them? Companies that fail to restore job security and rebuild trust in their workforce will continue to face a skeptical, disengaged, and transient employee base.
The Shift in Company Culture and Employee Expectations
The shift in corporate culture has profound consequences for both companies and employees. Companies now face a new breed of worker—one that is far more independent and skeptical of traditional corporate structures. This shift is not just about salary or benefits; it is about creating a culture of respect, transparency, and trust. Employees no longer expect blind loyalty from themselves—they expect their employers to demonstrate commitment and loyalty in return.
To navigate this new corporate landscape, businesses must evolve their cultural practices. The first step is to acknowledge that companies are no longer in a position of unchallenged authority. Employees today have greater power to negotiate, to move between companies, and to redefine their careers on their own terms. To build a culture of trust, businesses must shift from a top-down, directive model to one that values collaboration, personal growth, and mutual respect.
Creating a company culture that prioritizes employee development over short-term profit is crucial. This doesn’t just mean offering higher salaries or better benefits—it’s about providing employees with the tools to grow both professionally and personally. Companies must invest in leadership development programs, career growth opportunities, and initiatives that build both technical and human skills. By doing so, employees will feel that they are not simply cogs in a machine but integral members of an organization that genuinely values their growth.
Moreover, the transparency of a company’s decision-making process plays a critical role in fostering trust. When leaders openly communicate the company’s vision and how individual roles contribute to it, employees feel more connected to the company’s success. A culture that values honest feedback, open communication, and mutual respect lays the foundation for deeper employee engagement and long-term loyalty.
Mental Health and the Work Environment
The rise in mental health issues within the workplace is another byproduct of the increasingly toxic corporate culture driven by short-term thinking. Anxiety, depression, and stress-related disorders are on the rise, particularly among younger generations. While work often bears the brunt of the blame for these issues, the truth is far more complex. The pressures of modern work environments, exacerbated by the uncertainty of layoffs, increased expectations, and constant connectivity, create an environment ripe for mental health challenges.
However, it’s not just the work environment that affects mental health—it’s the broader socio-economic context. The impact of the COVID-19 pandemic has left long-lasting scars on the mental health of many employees. For many, the isolation during lockdowns, combined with the economic uncertainty, has created a sense of dread when it comes to returning to work. The anxiety of returning to a high-pressure environment after months of isolation and uncertainty is real, and it manifests in many workers as feelings of unease, panic, and stress.
Yet, it’s not the work itself that’s the problem—it’s the conditions under which work is performed. The competitive, high-stress environment exacerbates pre-existing mental health struggles, creating a vicious cycle where employees feel trapped. It’s also crucial to understand that many workers do not feel safe sharing their struggles with their employers, fearing that it will jeopardize their job security or how they are perceived within the company. Acknowledging mental health issues in the workplace, and creating a culture where it is okay to not be okay, is essential for breaking the cycle of stress and anxiety.
To address these mental health issues, companies need to take a proactive approach. Providing employees with access to counseling services, offering mental health days, and creating a supportive work environment are all important steps. But perhaps most importantly, leaders need to model vulnerability. When leaders openly discuss their mental health challenges and demonstrate that it is okay to ask for help, it sets a powerful example for the rest of the workforce.
The Importance of Leading by Example
Leadership plays an instrumental role in shaping the culture of a company. When leaders fail to model the behaviors they expect from their teams, they create a disconnect that undermines trust and morale. For employees to feel comfortable being open about their struggles, they need to see that their leaders are doing the same. A leader who shows vulnerability, admits when things are not going well, and seeks help when needed creates a safe environment for employees to do the same.
In today’s corporate world, there is a growing recognition that leadership is not just about being the most competent or knowledgeable—it’s about being human. Leaders who show empathy, self-awareness, and vulnerability create a culture where people feel valued not just for what they can produce but for who they are as individuals. Leadership is not about appearing perfect; it’s about being authentic, honest, and willing to engage with the emotional realities of work.
Moreover, when leaders share their personal challenges with their teams, they create a sense of connection that fosters loyalty and trust. This is especially crucial in a time when employees are navigating an increasingly complex and uncertain work environment. Leaders who can openly discuss personal struggles and mental health challenges normalize these conversations and encourage employees to do the same. By leading through vulnerability, leaders create an atmosphere where employees feel more comfortable taking risks, sharing ideas, and supporting one another.
Rebuilding Corporate Culture: A Long-Term Commitment
Rebuilding a corporate culture that values people over profits is not a quick fix—it requires a long-term commitment to change. The shift from a profit-driven, short-term model to a people-first, sustainable model requires a deep cultural overhaul that involves every level of the organization. It is not enough for leaders to merely talk about the importance of employee well-being—they must embed this philosophy into every aspect of the company’s operations.
This transformation starts with redefining the company’s values. Companies need to prioritize long-term growth and employee development over quarterly earnings. This means investing in training programs, leadership development, and initiatives that foster a sense of belonging and trust within the organization. It also means creating a system where employees feel valued not just as workers but as individuals who bring unique strengths and talents to the table.
However, building this new culture takes time. It requires leaders to demonstrate consistency and commitment to these values in every decision they make. It also requires patience, as the transformation will not happen overnight. But with consistent effort, companies can build a culture that attracts loyal, engaged, and committed employees who are willing to invest in the company’s long-term success.
The Path Forward
The path forward for companies lies in a commitment to creating a work environment that values employees as much as profits. The current business model, which prioritizes short-term financial performance at the expense of employee well-being, is unsustainable. If companies are to thrive in the long run, they must shift their focus to creating organizations where people feel valued, supported, and given the opportunity to grow.
This shift will not be easy, but it is necessary. It requires a change in mindset, a willingness to embrace vulnerability, and a commitment to building trust at all levels of the organization. By doing so, companies will create a more engaged, productive workforce that is capable of achieving long-term success while maintaining a healthy and supportive workplace culture.
Conclusion: The Need for Change
The corporate world has evolved, but not necessarily for the better. As long as profits remain the primary motivator, employees will continue to bear the brunt of short-term decision-making. The erosion of job security, the normalization of layoffs, and the neglect of employee well-being are all symptoms of a larger issue: companies have lost sight of the long-term value of investing in people.
For companies to thrive in the future, they must shift their focus. It’s not enough to just chase profits. True success comes from building a culture that values people, invests in their growth, and fosters a sense of belonging and security. If we want to create a more sustainable and equitable future, it starts with redefining what success means in the corporate world—one that prioritizes people as much as profits.