New Corporate Owners Gutted Benefits: How to Deal?

10 points by ThisIsAStandIn ↗ HN
The company I work for was recently acquired. We've just gotten the list of benefits the new company provides, and it's markedly worse than what we had, for more money per month.

Clearly, the obvious option is to start jobhunting.

However, until I find something else appropriate, what do I do? I feel a profound sense of betrayal by the current remaning management, the past owners who cashed out, and the new corporate overlords. It was no secret that acquisition was the goal, but we got told over and over again that the vetting process was considered and thoughtful, to make sure that our company was merging with a partner who shared common corporate cultures.

As an engineer, I feel like I have very little recourse other than to vote with my feet, but I want there to be repercussions for us being treated like this.

How do I go about daily tasks when I keep asking myself "why bother?"

14 comments

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> As an engineer, I feel like I have very little recourse other than to vote with my feet, but I want there to be repercussions for us being treated like this.

Your options are: 1) leave, 2) attempt to unionize, or 3) suck it up. If you leave, you can do a half-ass job at transitioning your work and take your knowledge with you, but it's unlikely the bosses care about that or even notice. It's unlikely that you can successfully unionize, but if you do, the bosses will really appreciate the repercussions of their actions.

> How do I go about daily tasks when I keep asking myself "why bother?"

You said it yourself: you feel betrayed by all the people you're working for. Do the bare minimum expected of you, and save your energy for planning your next step.

It seems like you got a raise. Is there any chance that you can frame the raise as a potential way to repurchase the benefits you lost? It is hard to know if this would be possible with the (understandably) guarded description of the situation.

Basically, is there a way to frame things as net-neutral at least until you find something else?

No, got a pay CUT.

Salaries did not change, but the amount we need to pay each pay period for health, dental, vision, etc. has gone up about 25% (not unexpected) but the coverage we get for that has gone down significantly.

We had arguably, really good insurance coverage. Low deductibles (less than 1000), on the order of $20-30 copays.

Now, for 25% more a pay period, we have much higher deductibles, much higher out of pocket limits, co-insurance (we now have 20% coinsurance until the out of pocket max is hit), the prescription formulary moves up to the higher tiers a lot of medications coworkers take....

Same with life insurance/dental/vision. It's more per pay period for significantly less coverage.

There's no way to frame it as net-neutral, unfortunately.

Sorry, I misinterpreted "for more money per month"
Corporate culture clash = employee rape, find a law firm and class action them
Loyalty in business has not been a thing for a long time. Where there's no loyalty, there's no betrayal. You're right to be angry about being lied to, but lies like this are so commonplace in the business world that I simply assume management is lying to me and do my own assessment of the situation.

Take stock of your entire work situation. Don't just look at pay and benefits, but also intangibles like flexibility, do you like your coworkers, do you like what you're doing, commute time, etc. etc. Once you've done that, decide if the whole package still makes sense or if you're better off elsewhere.

Most importantly IMO, let the anger go and coldly decide what's best for you and what you care about. This wasn't personal. This is simply a result of the political, economic, and cultural system we live in.

I'd tell them and give them 3 to 6 months to bring it up to spec and deliver what was there. From their perspective, they are giving you the benefits they probably already have at the larger company that acquired you. Give them a chance to make a change as in a big company that can take a bit of time.

If not, vote with your feet.

Why not simply put the question to the company/manager - “it appears you’ve reduced my package by X, how are you going to make me whole?”
> Why not simply put the question to the company/manager - “it appears you’ve reduced my package by X, how are you going to make me whole?”

And the likely response you'll get is: "Let's not pointlessly talk about the old benefits package, it's gone, so it's a moot point. We engage in salary surveys to make sure our pay is competitive, and we think yours is fair and some make less than you..."

Look I'm not saying that won't be the response - but you will usually never get what you don't ask for - and if the company wants to retain you, they might surprise you, my point is really more that there is an intermediate response that allows you to test the waters before or while you start looking for another job
You need to remember that this is a "value for value exchange" - and they are giving you less. They have changed your contract unilaterally. You are entitled to come back at them and renegotiate the contract. (It probably won't do any good, but I would try.)

"Hey, I see you've reduced my compensation. Let's discuss my new salary."

As for behavior; are you a professional? A professional performs to best of their ability. Take a fireman or a teacher; they don't "Do the bare minimum expected of you".

I would just leave.

“ but I want there to be repercussions for us being treated like this”

Don’t do this to yourself, friend. Let this be a learning experience as you figure out your next steps.

I hope it works out for you!

> I feel a profound sense of betrayal by the current remaining management...

Presumably, remaining management received healthy post acquisition retention packages.

Relative to how you felt treated. Don't take it personal, it's just business.

Incidentally, 'engineer talent retention' is a Top Priority for senior managers. Your skills are marketable, you've got leverage.

Have you asked them to True-Up your comp?

My last startup made the decision to change plans which cut benefits across the board as well.

However, they made across the board salary increases to offset these costs.

Great company. Great culture. Great people.

But I still made the decision to switch to a FAANG for the comp increase.

Here's my recommendation:

1. Take a breather. Things are really good for engineers right now, and it'll be ok.

2. Ask your manager about this in your next meeting. Explicitly state that it represents a comp decrease. They should respect that concern (even if they can't do anything)

3. Get an offer elsewhere. Everyone thinks they're underpaid. Offers represent the truth.