When TPG aquired Eze back in 2013 it set out on a restructuring of the corporate vision of Eze to prime it for an IPO or sale. Pre-TPG, the focus of Eze was truly on its clients and its employees. Eze made its name for not only its industry-leading software, but just as importantly its top of the line service model. Employees were encouraged and driven by the opportunities for advancement within the firm, and the compensation package was pretty handsome (nice base + bonus).
The post-TPG Eze corporate vision is on maximizing shareholder value- this has taken a few years to develop, but its effects are finally starting to stretch their roots across the organization:
-Salary Restructure in 2015: In 2015 Eze undertook a massive salary restructuring, where all non-management employees lost their previously existing bonus. While the company gave the illusion that employees bonuses would be moved straight to base, they conveniently quoted prior year pay terms in their documents, essentially nullifying the raises that employees had received in 2015. Also, the salaries for second/third level positions were slashed (this is well known across the firm, as people frequently talk about pay)
-Hiring of external directors: Over the past year, Eze has started a trend of hiring external director-level management from other public companies. This is a complete diversion from the prior mantra of Eze where all talent was home grown. These hirings have alienated employees, and the fact that most of them come from public companies is further evidence for Eze’s IPO focus.
-Service Model Overhaul: Eze is currently re-designing its entire service operation. The former role of a client-facing “business consultant”, which required knowledge of the entire product offering, is being replaced by the role of a “associate specialist”, who must master one, specific module of the system. The service side of the organization used to draw applicants from top colleges with well-rounded backgrounds, as the role required technical knowledge, the ability to learn quickly, communication skills, etc. The service role is now being transformed into a dull, mundane, repetitive function where employees have little room for growth and less feeling of ownership (think cogs in a machine).
Some of the firm’s brightest, most tenured employees have been leaving as of late, and it’s no secret throughout the company that people are unhappy. Eze has started sending around “satisfaction” surveys to gauge employee happiness, which would have been completely unnecessary as little as 2 or 3 years ago. While all companies go through growing pains, Eze’s have been especially rough.
