Employability: A substitute for loyalty?

Within the theme of contemporary innovative work arrangements and new psychological contracts, a new buzzword has been introduced: employability. This paper offers an analytical assessment of the idea, how it came into life, and the prospects of its adoption by organizations. A critical review is followed by a field study conducted to examine reaction to the idea, based on exploratory, in-depth interviews with HR directors. Based on a theoretical and management development perspective, as well as logical analysis, the paper concludes that the idea is flawed. Views expressed were mostly negative. It is implied that, though the concept of employability is beneficial for individuals, it would be unacceptable for organizations to 'sell' it to employees as a replacement for long-term commitment or loyalty and trust-based relationships.