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What levelling system do you use for employees? How do you communicate this levelling to your team?

What sort of levelling system do you use for your team? Who was involved in putting it together? How tightly is it tied to compensation? What size should your company be when you implement something like this?

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I don’t know if there is an optimum size to do it, but I do believe the earlier you can put those structures in place (let’s say by the time you hit 50), the better off you are. Getting a leveling and comp structure in place earlier means you avoid a situation where you have hired a bunch of people in and find a lack of consistency in their titles, comp, etc., which you have to rectify later.

Generally what I’ve seen is a leveling structure that indicates an increasing level of responsibility/experience/seniority/title and then each level would have compensation bands. The bands within each level could be applied flatly across different kinds of roles, or they could be more specific to the type of role people are performing (and this is where good market data comes in handy). The comp bands for each level could also have different sub-bands within them to show there is a progression possible (e.g., exploring, performing, mastering on each level).

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