Understanding Leveling Systems in Multinational Corporations
Many believe that promotions in multinational corporations (MNCs) are based on effort, accomplishments, and KPI attainment. However, large MNCs like Google, Meta, Amazon, Apple, Microsoft, Intel, and Nvidia use a standardized system called Leveling or Grading. This article explains what these levels mean, how they differ, and how you can advance within the system.
What is Leveling?
Leveling (or Grading) isn't about your job title. It's about your role and position within the company.
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It defines the scope of your responsibilities.
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It determines the impact of your work.
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It sets the company's basic expectations for your level.
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It defines the complexity of problems you should be able to handle.
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Crucially, it establishes your salary band.
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It determines if you are eligible for promotion
Your value is measured by your contribution at your current level. Are you performing at 60%, 80%, or 100%? Many people assume that taking on extra work leads to promotion, but that's not necessarily the case. Also, if your behavior and decision-making don't align with the next level, you'll likely remain stuck. Promotions aren't solely based on personal preference.
A harsh reality is that during layoffs, the most hardworking aren't always retained; rather, it is those at the minimum requirements of their level.
Understanding Level 5
Level 5 in many MNCs represents a middle-level position. For example, someone with a master's degree and five years of experience might enter a company like Intel at Level 5.
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Level 5 typically involves independent work.
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It requires handling moderately complex tasks.
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About 30% of the work might need guidance or decisions from a supervisor.
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This level is about execution rather than leading initiatives.
Many engineers in Taiwan get stuck at Level 5 because their training emphasizes following instructions and completing tasks, which aligns with Level 5 but not Level 6.
Understanding Level 6
Level 6 is considered a core talent level in MNCs and demands more than just execution. It requires:
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Cross-departmental alignment.
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Influence over supervisors and major clients.
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Ability to push projects to completion without explicit authorization.
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Leading direction and making decisions.
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Mentoring junior colleagues and leading teams.
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Handling high-risk, highly complex tasks.
Moving to Level 6 signifies a shift from doing tasks to providing direction. Many engineers, even experienced ones, struggle with this transition because they excel at execution but lack leadership and cross-departmental influence. They can complete assigned tasks but not necessarily define or lead them.
Understanding Level 7
Level 7 represents a high-level technical leader within the organization. It requires:
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Strategic thinking and ownership within your domain.
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Global, cross-regional collaboration.
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Ability to influence the direction of the entire organization.
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Architecting entire products.
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Serving as a "go-to" person for the team.
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Potentially representing the company externally.
Advancement to Level 7 isn't solely based on effort or academic credentials like a PhD. It's about taking responsibility, providing direction, making decisions, and driving the entire team. MNCs are often flat, so moving from Level 5 to Level 7 can put you in a leadership role.
Why You Might Be Stuck at Level 5
It's possible to remain at Level 5 for many years despite working hard. This occurs because you're doing the right tasks but not at the right level. You may not demonstrate the behaviors required for Level 6. This can include:
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Lack of decision-making.
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Risk aversion.
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Inability to align with other departments.
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Failure to influence others.
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Focusing solely on completing assigned tasks.
Managers cannot promote you if you don't provide evidence that you're ready for Level 6. Competency, not just effort, is crucial. Leveling systems prioritize competency, evidenced by your actions, over mere KPI attainment. In MNCs, decision-making, ownership, and influence are assessed through behavioral evidence.
Tips for Advancing to Level 6
Here are three actionable tips to help you reach Level 6:
- Practice Clear Communication: Develop a habit of communicating directly and clearly, integrating it into your everyday speech rather than just during presentations. State your purpose concisely.
- Decision-Making Review: Conduct a weekly review of the decisions you made, both big and small. Write down the alternatives and explain your reasoning for choosing a specific option.
- Alignment Mapping: For every project, create an alignment map to identify stakeholders. Proactively update them based on their importance to the project, adjusting your communication frequency and level of detail accordingly.
Conclusion
Many people are capable but lack guidance on what it takes to advance in MNCs. Leveling systems define your value based on how well you fit into a specific role and level. Understanding this system can significantly impact your career trajectory over the next five years.
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