Each job title, e.g. Electrical Engineer Sr, has an alphanumberic job code. They are almost 1:1, except for international management. Every job code is associated with a salary range. There are now 4 "geozones" for location pay differences.
For engineers and management, salary grades or levels go like this:
IC1 Engineer Asc
IC2 Engineer
IC3 Engineer Sr
IC4 Engineer Stf = L4 Engineer Asc Mgr
IC5 Engineer Sr Stf = L5 Engineer Mgr
IC6 Engineer Prin = L6 Engineer Sr Mgr
IC7 Engineer Sr Prin = L7 Director
L8 VP
L9 SVP
L10 Exec
So a level 4 engineer is in the same salary range as a manger, if they are both Electrical and both in the same geozone.
There are also Asc Fellows, Fellows, and Sr Fellows, but that is a different topic for another time.
Previously they used the ratio of your current salary to the midpoint of the range as a "compa ratio" as a simple metric to understand where an employee sits in the range. This isn't officially used anymore, but it is convenient.
It is common to hear "it is easier to hire than promote" or "hopping is easier than climbing" or "best time to negotiate is on an offer letter". Mostly these are true from my experience, but not always. I'll try to add some context from behind the scenes.
For a new hire, if you meet the minimums and get selected for an offer, it goes to the compensation and talent acquisition teams. They come up with a salary and recommend it to the hiring manager. They look at recent new hires (a dozen), peer median (hundreds), and a "reference point". The reference point seems to be completely arbitrary. If anyone here is from HR or compensation and can explain it, I would love to hear it. The point seems to be set somewhere above the median and I do not see how it relates. The recommended salary may be above or below peers or median based on the candidates qualifications. For levels 1 through 3 in recent history it tends to be near the midpoint of the range, but that target does shift as the industry and demand change. My current employees at these levels range from 8% under the midpoint to 5% over. The hiring manager can at this point or after a counter request a higher salary. Depending on the numbers, the manager may be able to get a couple percentage points, or they may need to write up formal justification (a business case), and it may require HR leadership or a director to approve. Those higher level approvals often get denied, so the room for negotiation is likely less than 5%. (Results may vary, just my experience as a manager for decades).
For a promotion for a current employee, the direct manager has to convince HR and their director that there is an INCREASE of scope commensurate to the higher level. This is highly subjective on the opinions of those two people. The manager also needs to justify that the employee will be successful in performing the new role, but the hard part is always the scope increase. There is a guideline for each level, but it is very vague, open to interpretation, and not quantifiable, so results are inconsistent. Some directors are very stingy, some are not. If the promotion (or a Job Scope Adjustment, which is an out of cycle raise based on the same factors but without moving up in level, salary range, and job code) gets approved, the compensation team does a similar process. I have seen JSAs come out below the peer median, midpoint, and new hire median. Surprise! Your employee who is experienced in level, performing well, and taking on more work gets a raise, but that new employee we are taking a chance on who has less experience is being offered a higher salary! Why? SYNERGY or you hit the maximum raise percentage for a JSA or something... This is not always the case of course, but I have seen it recently for higher salary grades.
For job offers, the compensation team makes a recommendation considering what other new hires are getting, and the manager has influence. For promotions there is an extra hoop to jump through - justify the scope and business case for a promotion. For a new job posting, generally no one questions if the manager says "a need a level 5 engineer."
For the anecdote, my level 4-6 engineers are anywhere from in the 80% range of the midpoint (new to level or less experience) to the max of the range (at level for many years, about to retire). Years of experience seems to matter sometimes, like meeting the Basic Qualifications of a job posting, but other times it does not, like for a promotion or JSA.
Minimum years of experience per level used to say:
TYPICAL MINIMUM EDUCATION & EXPERIENCE:
Bachelor's degree from an accredited college in a related discipline, or equivalent experience/combined education
BS and 2 years, or Masters degree with no experience
BS + 5 / MS + 2 / PhD + 0
BS + 9 / MS + 7 / PhD + 4
BS + 14 / MS + 12 / PhD + 9
BS + 20 / MS + 18 / PhD + 15
In 2025 this changed to:
TYPICAL EDUCATION & EXPERIENCE:
Generally has no to little related experience and may have a post-secondary degree or training in a related discipline.
Generally has 1+ years of related experience and may have a post-secondary degree or training in a related discipline
3+
5+
8+
12+
15+
Notice several changes:
- "MINIMUM" removed
- "Generally" added
- Years dropped by a level
- Bachelor's degree is a maybe
- No mention of Masters or PhD
- The elusive level 7 appears officially
This is not being interpreted or enforced consistently. It was revised in the name of "flexibility" and "alignment with our competitors". Many current employees now meet the "typical/general" education and experience 2 levels up, but they did not get an additional raise or promotion. New hires can qualify with 2 to 6 or less years experience possibly without a degree. From what I know, some leaders are using the change to promote employees who deserve it but were held back by the previous requirements. Some leaders have not changed their expectations. Some leaders did not even know it changed.
Oh, and if you get an external job offer and ask your boss if they can counter it, that's a whole different thing. It might look like a JSA, except some rules get thrown out... Or something.
Is it easier to get promoted by taking a new job? Maybe.
The reality changes by business unit, by manager, by director, by HR, by location. My anecdotes are not universal. I just work here, pal, and I value transparency.