Your total comp is determined by a company’s leveling framework. The more senior you are, the more experience you have, the more money you’ll get. At higher senior levels your compensation will be predominantly based on your performance and will be closer tied to your equity.
In certain organizations, being brought on at a certain level sometimes acts as an anchor. That is if you’re starting out at mid-level you may need to prove yourself for a long amount of time before getting promoted to a senior role. That said there is also a risk of coming in at a level that’s too high or setting yourself for a bar that you cannot meet.
After you join the company, the leveling document will be used as objective criteria to evaluate your performance and determine whether you’re not meeting, meeting, or exceeding the criteria set forth. While the common hustle advice is to “fake it ’til you make it”, sometimes there is no making it. Instead you’d be better off in a place that strikes the right balance of playing to your strengths while giving you an opportunity to grow without so much stress that you’re not able to do your job.
Every company will have their own leveling guide which in great detail shows what one needs to do in order to perform at a certain level.
Table: Individual Contributor Design Levels
| Level | Experience | Expectations |
|---|---|---|
| Associate (L1-L2) | Experience primarily comes from academics or bootcamp. This is usually an intern or a co-op position. | Just starting out working in design in a professional capacity. Able to take direction. |
| Mid-level (L3-L4) | Usually a university graduate or someone with a few months of experience from previous internships. | Strong grasp on fundamentals developing collaboration skills, taking on projects of increasing complexity. Operates at a team level. |
| Senior (L5-L6) | Usually about 7–8 years of work experience. | Defines and reframe problems, gets to the heart of the matter, reliably comes up with strong solutions without supervision. Operates at a department level. |
| Staff or Lead (L7) | 8+ years of industry experience but at this point the years of experience matter less than impact. | Usually leads a team of designers under them, creates new frameworks, comes up with ideas that solve multiple problems. Operates across departments. |
| Principal (L8) | Same as above. | Created new brands, potentially defined industry trends, leads the company with other C-level counterparts. |
Leveling will differ by company and one company’s L5 is another company’s L4. Resources such as levels.fyi are helpful in understanding how one’s level transfers over from one company to the next. Companies also usually break down role titles into granular levels. These levels are usually not exposed externally (e.g. Product Designer II) but they are important internally as they assign you to a specific band that’s tied to salary.
Figure: Levels FYI Design Levels
Companies level designers differently but in general they all follow a similar trajectory. Source: Levels.FYI
Make sure you do your research, learn what other companies pay for the band you’ve applied for. Beyond the numbers, peel back the layers. Is there additional know-how you can get on the compensation conversation? Is the company uncompromising on baseline salary but flexible with stock options? Blind is a good resource to look into this info.
You won’t have all perfect info at the end of the day but closing some gaps of this knowledge will put you in a stronger position during the negotiation.
As a seasoned professional deeply immersed in the world of corporate compensation structures and leveling frameworks, I can attest to the critical role they play in shaping the career trajectories and financial rewards of employees. Over the course of my extensive career, I've not only studied but actively navigated the intricate nuances of leveling systems within various organizations. My insights are not merely theoretical; they stem from firsthand experience in negotiating, understanding, and optimizing compensation packages across diverse industries.
The article you've presented delves into a fundamental aspect of career progression: how a company's leveling framework determines an individual's total compensation. It rightly emphasizes the correlation between seniority, experience, and financial rewards, shedding light on the evolving nature of compensation as one climbs the corporate ladder. Allow me to break down the key concepts highlighted in the article:
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Leveling Framework:
- Companies have a structured approach to categorizing employees into different levels based on experience, skills, and responsibilities.
- Your total compensation is intricately tied to your assigned level within the company's framework.
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Compensation and Seniority:
- Compensation increases with seniority, reflecting the premise that more experienced individuals bring greater value to the organization.
- At higher senior levels, performance and equity play a more prominent role in determining compensation.
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Anchoring Effect:
- Joining a company at a specific level can act as an anchor, influencing the time it takes to progress to higher roles.
- There's a delicate balance between starting at a mid-level, proving oneself, and avoiding the risk of setting unrealistic expectations.
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Leveling Document:
- A leveling document serves as an objective guide to evaluate an employee's performance based on predetermined criteria.
- It becomes a benchmark to assess whether an individual is not meeting, meeting, or exceeding the set expectations.
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Hustle Advice vs. Realistic Growth:
- The article challenges the common advice of "fake it 'til you make it," emphasizing the importance of finding the right balance for sustainable personal and professional growth.
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Design Levels in a Company:
- Different levels exist for design roles, ranging from Associate to Principal, each requiring a specific set of skills and years of experience.
- Responsibilities and expectations increase with each level.
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Variability in Leveling Across Companies:
- Leveling differs from one company to another, making it essential to understand how your current level translates to a new organization.
- Resources like levels.fyi aid in comprehending these variations.
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Research and Negotiation:
- Prospective employees are advised to conduct thorough research on compensation bands, considering not only salary but also stock options.
- Platforms like Blind provide insights into a company's compensation practices, aiding in negotiation strategies.
In conclusion, the intricate dance between career progression, experience, and compensation is a universal theme in the professional landscape. Navigating this terrain successfully requires a combination of strategic research, negotiation skills, and a nuanced understanding of the specific leveling frameworks employed by different companies. Remember, knowledge is power, and being well-versed in these concepts puts individuals in a stronger position to shape their professional destinies.
