Jack Welch Predicts a Brave New Workforce from this Recession

Jack & Suzy Welch wrote a timely commentary in the latest issue of BusinessWeek. They predict that plenty of people will work for themselves as a result of the recession, and the main reason is a lack of trust in employers -- that is, ALL employers, both present and future ones. "Plenty of talent no longer wants to work for 'the man,'" they say in their commentary. "Wooing them will require candor, innovation and the excitement of a start-up."
Having worked for seven years for GE under Mr. Welch's leadership, I can tell you that the man is sincere. He insisted on honesty. For example, he was against social promotions of long-time employees, saying that it was unfair not only to the organization but to the employees themselves. I was also the point person in several business throughout the company that were facing seismic changes, usually resulting in layoffs. It was tough to bring this news to my audiences, such as the media, the community and the employees. We would often communicate the state of the business for months in advance, preparing them for change. It was tough on everyone, but no one could say they were surprised.
My employers since then were the exact opposite in their practices. They pumped up the businesses' standings, even in the face of conflicting financial reports. Leaders would communicate when the results were good, but disappear when there was a downturn. Yo, you don't have to be Peter Drucker to figure that one out! Employees learned quickly that this meant that the business was in trouble.
I always advocated open communication to the business leaders. I argued that the employees would value knowing the condition of the company and the plan to deal with that condition so that they could rally behind it. The usual response was that honesty would cause their best employees to leave, because those were the people who had the most options. I countered that the employees had a right to know the condition of the company so they could plan accordingly. But, I repeated, if they heard the company's plan, they would rally behind it.
No employer of mine other than GE ever accepted this philosophy.
I also never worked again for a company that was as successful as GE.
I agree with the Welches that there will be payback for this from the best and the brightest. These smartest of the employees have learned that most organizations cannot be trusted. Besides, the job is a 20th Century invention that may have run its course. Prior to the Industrial Revolution, most people worked for themselves on farms or at crafts. But when factories expanded, they needed people to work in them. Good wages attracted many people away from the crafts and farms they knew.
Now that covenant has changed, and we seem to be returning to the natural order of employment, opting for work that fills our hearts in addition to our wallets. People used to say, "I can't quit my job to go out on my own. I need the security." Well, how is that security thing working for you now, Bucky?
I write about this in my book, "The Six P's of Change." My very first principle, the first "P," is the Perception that change, some change, is going to happen to each one of us. For so many, that change has come to our jobs.
For those of you who still have employees, it is not too late to practice this philosophy. Be open with your people, and empower them in the process. Build your employees' loyalty to you by showing loyalty to their interests. Don't just take it from me. Take it from two masters of business.