Insights
4.11.2025
Kristo Ovaska
What should I have in place for a leveling framework to be effective?
Before introducing a leveling framework, your company needs the right foundations in place — clear role expectations, capable managers, transparent pay structures, and consistent feedback rhythms. This article explains how these elements work together to make leveling fair, scalable, and effective, with insights from Mercer, Josh Bersin, and Index Ventures.
A leveling framework only works when you already have clarity, capable managers, transparent systems, and consistent feedback rhythms in place. Otherwise, it becomes just another HR document — not a tool that drives growth or fairness.
According to Mercer’s 2024 Global Talent Trends, 78% of organizations that implemented leveling prematurely later rebuilt their systems due to misalignment, unclear expectations, or untrained managers.
Similarly, research from Josh Bersin Company shows that high-performing organizations are 4x more likely to define performance expectations before designing leveling structures.
This article examines the foundational elements necessary before introducing leveling, including expectations, feedback systems, onboarding, manager capability, and cultural consistency — all of which are essential to performance enablement.
Why do foundations matter before building a leveling framework
A leveling framework reflects your organization’s reality — not an aspirational one. Without foundational clarity, it amplifies confusion instead of reducing it.
Leveling should come after you’ve defined:
- What outstanding performance looks like in your company
- How feedback flows
- How promotions, onboarding, and compensation connect
"A job architecture isn’t a starting point — it’s a mirror. It shows how your organization already operates, learns, and rewards."
That’s why companies should introduce leveling only once multiple teams exist, goals are consistently set, and regular growth conversations occur.
What questions you should be asking yourself before introducing leveling
See our previous blog, which guides founders of growth startups on how their performance management system should scale with the company. For a generalist guide, ask yourself the following questions.
1. Do I have role expectations and impact definitions?
Before setting levels, define what success looks like for every role.
People must understand how performance is measured and how impact scales with seniority.
- Use outcome-based role descriptions, not task lists.
- Anchor growth to impact, scope, and leadership behaviours.
- Ensure that role expectations align with the company's goals and values.
2. Why should recruitment, onboarding, and compensation be transparent?
Transparency builds credibility before frameworks are even established.
If compensation and progression feel unclear, leveling cannot fix it — it will only expose inconsistencies.
Your recruitment and onboarding processes should clearly explain:
- What compensation consists of (base, variable, benefits, and equity)
- How compensation decisions are made (market data, performance, levels)
- How performance is evaluated
- How new hires ramp up through structured onboarding plans
Index Ventures’ “Rewarding Talent” highlights that early-stage startups with clear equity plans outperform their peers in terms of retention and trust-building.
Structured onboarding also reduces time-to-performance by up to 25%, according to McKinsey’s 2023 People Analytics Report.
3. Why are feedback and manager capability prerequisites?
A framework is only as strong as the managers applying it.
To make leveling effective:
- Feedback should already be part of your culture (not introduced at the same time)
- Managers must know how to coach, calibrate, and differentiate performance
- Feedback loops should be documented, regular, and two-way
In Taito.ai’s performance model, manager capability and feedback rhythm form the operational layer that supports leveling and evaluations.
4. How do clear values and leadership behaviour impact leveling?
Values define how performance is lived, not just measured.
If leadership doesn’t model company values, no framework will feel fair.
Leaders should:
- Model expected behaviours consistently
- Use company values in hiring, recognition, and promotion decisions
- Keep values current through annual feedback sessions
Books like Tribal Leadership and The Five Dysfunctions of a Team reinforce that trust and shared accountability are the foundation of sustainable performance — not policy documents.
5. How can you connect leveling to performance systems?
Once foundational clarity exists, connect your framework to operational systems:
- Goal setting: OKRs or quarterly objectives
- Feedback tools: Continuous feedback loops
- 1:1s: Manager-led growth check-ins
- Evaluation: Calibrated reviews that map to levels
- Compensation: Transparent pay and equity bands
Integrating these systems ensures leveling supports — not competes with — performance.
Table: Foundations to have in place before leveling
Before introducing leveling, organisations should have trust, transparency, structure, and continuous feedback habits in place, as well as leaders who model the values they use to communicate their expectations.
| Foundation | Why It Matters | What “Good” Looks Like |
|---|---|---|
| Clear expectations | Defines what success means at each level | Role clarity across all functions |
| Continuous feedback | Keeps growth and calibration consistent | Structured rhythm of weekly or monthly feedback |
| Manager capability | Ensures fairness and consistency | Managers trained to coach, not just evaluate |
| Transparent compensation | Builds trust and equity | Pay structure linked to levels and skills |
| Structured onboarding | Accelerates performance and cultural alignment | Clear 30-60-90-day ramp-up linked to role expectations |
| Values and leadership modeling | Anchors framework in culture | Leaders demonstrate values in feedback and promotion decisions |
| Connected systems | Ensures consistency across lifecycle | Leveling linked to goals, feedback, and evaluations |
What to read next
- How Can AI Help You Build Continuous Feedback Loops in Your Organization? - Learn how AI can automate and personalize real-time feedback, helping teams stay aligned and improve continuously.
- How to Build Role and Leveling Frameworks - A practical guide for founders and people leaders on defining roles, levels, and competencies that scale with your company.
- Performance Management for Startup Growth: A Founder's Guide
Discover how modern, lightweight performance processes support growth without slowing execution.
FAQ
Q1: When is the right time to introduce a leveling framework?
When you have multiple teams, managers, and repeatable feedback rhythms. Before that, focus on clarity and culture first.
Q2: How can I make leveling fair across teams?
Train managers together, use shared rubrics, and calibrate quarterly. Tools like Taito.ai help standardize evaluations.
Q3: What’s the difference between leveling and performance evaluation?
Leveling defines potential and scope. Evaluation measures impact within that scope. The two complement each other.
Q4: How does AI make leveling easier?
AI automates documentation, feedback summarization, and role comparison — reducing admin while improving consistency.
Q5: Should I connect compensation to levels?
Yes — but transparently. Use clear pay bands and equity guidelines, as recommended by Index Ventures’ Rewarding Talent.