Leveling System in Tech Jobs
Pros, Cons, and Perspectives
It was February 20, 2015. I remember receiving my first job offer letter from SanDisk, scheduled to start after my graduation in March 2015. I was very happy and excited to see my first offer letter in the USA; the joy was unparalleled as my first job after my master's was in Silicon Valley. I was just thrilled to have secured the job.
I didn’t even negotiate the offer (a costly mistake, but that's a story for another time).
The offer letter stated that I got a “Software Engineer 2” position. At that time, I wasn't very familiar with the various levels like SWE 1, SWE 2, Senior, etc. Fast forward, I gained a lot of experience with different companies and the leveling of Software Engineering positions, as detailed below:
SanDisk (worked for 3 years 7 months and became a Senior Software Engineer)
Microsoft (MSFT down-leveled me to SWE-1 😒, then I got 2 promotions in 2 years to SWE-2_1 & SWE-2_2; Worked 2 years 7 months)
Salesforce (Joined as Senior SWE - external promotion; Now a Tech Lead) cont…
Believe me, this corporate journey has been crazy, filled with surprises and shocks. It totally diverted my focus from my true passion for raw Software Engineering to unnecessary leveling races.
My goal with this article is to make all Software Engineers aware about leveling system which is a key integral part of your career, whether you just joined a company as an entry-level engineer or you are at a mid-senior level.
If you don’t have time to read full article, just go to “My Two Cents” section in the end.
Let’s understand this in more detail with some basic understanding.
What is the Leveling System in Tech Jobs?
The leveling system in tech jobs is a structured framework that categorizes employees based on their skills, experience, and responsibilities. This system helps companies define roles, set expectations, and create a clear path for career advancement.
Levels typically range from entry-level positions (e.g., Software Engineer I) to senior roles (e.g., Senior Software Engineer, Principal Engineer) and leadership positions (e.g., Engineering Manager, Director of Engineering).
Why Does the Leveling System Exist?
The leveling system exists to bring clarity and organization to the workplace. It allows both employees and employers to understand job expectations, responsibilities, and the criteria for promotion. Below are few reasons which are responsible for leveling system,
Structured Career Paths: Provides a clear roadmap for career growth and progression.
Performance Management: Helps in evaluating employee performance based on predefined criteria.
Compensation: Ensures equitable and competitive pay scales aligned with market standards.
Talent Management: Aids in identifying and nurturing talent within the organization.
Standardization: Maintains consistency across different teams and departments.
Good Things About the Leveling System
Clarity and Transparency: Employees know what is expected at each level and what they need to achieve to move up.
Motivation and Goals: Clear goals and milestones can motivate employees to develop their skills and advance their careers.
Fair Compensation: Aligns salaries and benefits with industry standards and ensures fair pay for similar roles.
Talent Development: Helps identify high performers and tailor development programs to support their growth.
Organizational Efficiency: Streamlines processes like recruitment, performance reviews, and promotions.
Bad Things About the Leveling System
Rigidity: Leveling system can be inflexible, not accommodating the unique contributions or skills of individuals.
For ex, If you are a software engineer with exceptional coding skills but not able to gain velocity in finishing features may hinder your growth to next level.
Pressure: Employees might feel pressured to meet specific criteria, leading to stress and burnout.
For ex: If you want to go to the next level, you have to finish x number of features withing Y amount of time. That gives you pressure and stress both.Promotion Challenges: The emphasis on specific achievements can delay promotions for those excelling in less quantifiable areas.
For ex. As a SWE you are good at cross team communication (Which is less quantifiable) and you qualify for promotion for almost everything except you are short of one feature to get qualified for promotion 😒
Bureaucracy: Can create unnecessary layers of management and slow down decision-making. This is a big problem in all the big companies with unnecessary levels for a specific role.
For ex These days SWE role has almost 5-8 levels which prevent people from taking decisions on lower level and also gives less freedom to become innovative.
From the lens of an Entry-Level Engineer
For an entry-level engineer, the leveling system can be a double-edged sword.
On one hand, it provides a clear path for career development, showing what needs to be accomplished to advance in their career. On the other hand, the criteria for promotions can seem daunting and rigid, making it difficult to stand out if one’s strengths lie outside the standard metrics.
Entry-level engineers benefit from the structure as it guides their professional growth and helps them set realistic career goals. However, they may also feel overwhelmed by the expectations and pressured to quickly move up the ladder, sometimes at the expense of personal well-being and creativity.
From the lens of a Senior Engineer or Above
As you go senior or above, your responsibilities grow exponencially and roles and responsibilities are more fluid and not crystal clear even though company is saying this is what we are expecting. 😃 This is very much depend on what your Hiring Manager and Leadership think your level should do and not what company states in their leveling guide.
Senior engineers often view the leveling system more favorably, as it validates their experience and accomplishments. It provides a framework for negotiating salaries and promotions based on clear criteria and can help in mentoring and guiding junior team members.
However, for those at higher levels, the leveling system can sometimes feel restrictive. The focus on predefined achievements for further advancement can limit opportunities for innovation and personal growth in areas not directly aligned with the criteria.
Senior engineers may also face challenges if the system fails to recognize the full extent of their contributions, particularly in non-technical areas like leadership and mentorship.
From the lens of a Manager and Leadership
Managers and leadership teams generally appreciate the leveling system for its ability to bring structure and consistency to the organization. It aids in managing teams, setting clear expectations, and ensuring fair and competitive compensation. The system also facilitates talent management, helping leaders identify high-potential employees and support their development.
However, the leveling system can also present challenges for frontline managers. It can create a bureaucratic environment, making it difficult to reward exceptional performance outside the standard criteria.
Frontline managers may also struggle with the rigidity of the system when trying to foster a culture of innovation and agility. In rapidly changing tech landscape, managers need people to go out of their scripts of leveling and perform above and beyond.
My Two Cents
» If you are planning to do a job in big tech company for at least 5-10 years then you should definitely look into your company’s leveling guide and try to take benefit to grow your career.
» If you are someone who has no high hopes from current tech job and more interested in entrepreneurship/business then this is something you can ignore. Just survive 😃
» If you are someone who is following all the leveling guide and still your manager is not making a case for your promotion, you can ask your manager in your 1:1 to get more clarity. You can always find another good opportunity if you find that your org is not following company’s standards.
» Don’t get burned out or stressed for the leveling system which is man made. Leveling is just a number that describes the responsibility. You can always try to apply outside for your desired level directly. You will get desired higher (atleast +1) role level in any company if you are prepared.
» Every person has different skills, interest and capacity to take responsibilities based on their personal affairs. You can always decide to stop at some level in your career and not move forward to keep your peace. It is totally OK.
Conclusion
Leveling system in any organization is a double edged sword. Ultimately, the effectiveness of a leveling system depends on its implementation and the ability of an organization to adapt it to the unique needs and contributions of its employees. A well-balanced system that recognizes both technical achievements and broader contributions can drive growth and satisfaction across all levels of a tech organization.
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Great article, one thing that’s also interesting is leveling across companies. For instance a Meta E6 is equivalent to Google L6 but Apple ICT5 and Principal at MS.
Also there’s title inflation, at the extreme we have new grad VPs in east coast banks to smaller companies attracting talent by offering Staff/Sr Staff roles.
I’ve found levels.fyi as a great resource to validate my target level at a new company as compared to my current.
Very well written Chintan