5.5 Compensation & Career Architecture

Complexity hides bias. To ensure absolute fairness and speed, Dannie.cc utilizes a One-Dimensional Grade System.

The organization employ a single, linear ladder of Grades (e.g., G1 to G15) that defines the structure. Compensation is strictly defined by the Grade. There are no opaque negotiations.

The Grade Structure (The Linear Scale)

The entire organization maps to a single sequence of Grades. Each Grade corresponds to a specific, fixed salary number (or tight range) based on market data.

The Role Brackets

While the scale is continuous, specific Job Titles are restricted to specific Grade Brackets. A "Junior" role cannot exist at Grade 15.

Role Maturity	Grade Bracket	Focus
Support / Junior	G1 – G3	Learning. Task execution.
Professional / Mid	G4 – G6	Independent execution.
Senior	G7 – G9	System Design. Mentorship.
Staff / Lead	G10 – G12	Strategy. Multi-team impact.
Principal / Exec	G13 – G15	Industry Impact. Vision.

Moving Up: The Two Mechanisms

Progress along the ladder occurs via two distinct mechanisms. The distinction between an Increment and a Threshold Crossing is critical.

Mechanism A: The Increment (The Raise)

• Definition: Progression within the current Bracket (e.g., G4 → G5).
• Trigger: Annual Performance Review.
• Authority: Manager Approval.
• Logic:
  • Rating "Reliable Operator": Move up +1 Grade.
  • Rating "Mission Commander": Move up +2 Grades (Accelerator).
  • Rating "Inconsistent": Freeze (Stay at current Grade).
• The Ceiling: Upon reaching the top of the bracket (e.g., G6 for a Mid Engineer), progression stops. Movement to G7 does not occur via tenure. Mechanism B is required.

Mechanism B: The Threshold Crossing (The Promotion)

• Definition: Movement from the top of one Bracket to the bottom of the next (e.g., G6 → G7).
• Trigger: Promotion Cycle (Jan/July).
• Authority: Calibration Committee (Peers + Leadership). Single manager approval is insufficient.
• Requirement:
  1. The Ceiling Hit: Performance is currently at the top of the bracket.
  2. The Evidence: Demonstrated capability to operate at the Next Level for 6 months.
  3. The Vacancy: A business need exists for the higher role.

The Cycle (Jan & July)

All movements are standardized to maintain process stability. "Off-cycle" adjustments are not processed.

• Jan 1st (Primary Cycle): Performance Increments (Raises) + Threshold Crossings (Promotions).
• July 1st (Secondary Cycle): Threshold Crossings (Promotions) only.
  • Note: Broad salary adjustments typically do not occur in July unless inflation or market data dictates a base correction.

Incentives (The Bonus)

Bonuses are Profit Sharing, not entitlements.

• The Trigger: Company EBITDA > 0. (No Profit = No Bonus).
• The Calculation:
  Bonus = (Grade Base Salary x Target %) x (Company Factor x Personal Factor)
• Target %: Increases with Grade (e.g., G1=5%, G10=20%).
• Company Factor: Revenue target achievement (0% – 120%).
• Personal Factor: Based on Quarterly Performance Rating (0% – 120%).

Internal Mobility & Transfer

A transfer is a lateral move (e.g., G5 Quality Engineer → G5 Sourcing Specialist).

• The Rule: The Grade transfers with the employee.
  • Exception: If transferring to a role with a lower market value bracket, the Grade may be frozen or reset to the top of the new bracket.
• Eligibility: Must be a "Reliable Operator" or better. No transfers to escape a PIP.
• Transition: The current project loop must be closed (30-day handover) before moving.

The Promotion Packet (Threshold Crossing)

To cross a Threshold (e.g., G3 → G4), the manager must submit specific evidence.

THRESHOLD CROSSING REQUEST: [Name] (G3 -> G4)

1. The Business Case:

• Why is a G4 required here? (e.g., "Autonomous design decisions required, not just execution").

2. The Evidence (Lagging Indicator):

• Requirement: "Must solve ambiguous problems independently."
• Proof: "Candidate debugged the RF interference issue on Model X without escalation. (Link to Report)."

3. Peer Check:

• Feedback from 2 colleagues in the G4+ bracket confirming the candidate operates at the required level.

Final Checklist

Control Point	Rule / Standard
System Type	One-Dimensional. Single linear scale (G1...G15).
Raises	In-Bracket movement. Automatic based on Performance Rating.
Promotions	Cross-Bracket movement. Requires Committee Approval.
The Ceiling	Progression stops if the bracket limit (e.g., G3) is hit without a Promotion.
Cycles	Jan 1 (Raises & Promos) and July 1 (Promos only).
Counter-Offers	No Match. Payment is for the Grade, not the negotiation.
Transparency	Grades and criteria are public. Salaries map strictly to Grades.