Leveling Up: Defining the Ladder of Software Engineer Levels

One in three developers has been coding professionally for four years or less, according to Stack Overflow’s 2024 Developer Survey.

What does that experience signify for your organization?

In the world of software engineering, companies often use a tiered system to categorize engineers based on their experience, capabilities, and contributions to the organization. These levels, typically denoted as L2 engineer, L3 engineer, L4 engineer, and so on, serve as a career roadmap, compensation framework, and a way to manage expectations and responsibilities. But what do these designations actually mean? Let’s explore each of these software engineer levels in detail.

L1 Engineer: Entry-level Engineer

In software engineering, professionals just starting their journey are Level 1 software engineers or Entry-level Engineers. These budding engineers are typically fresh-eyed and eager to apply what they’ve learned academically to real-world challenges. An L1 engineer typically looks like:

• L1 Engineer Experience: Fresh out of school or a coding boot camp, with little to no real-world experience.
• L1 Engineer Responsibilities: Primarily tasked with simpler, well-defined bugs or features. Supervision is usually required.
• L1 Engineer Skills: Knowledge of basic coding, debugging, and algorithmic principles. Limited familiarity with industry tools and best practices.
• L1 Engineer Growth Path: This phase is all about learning, gaining hands-on experience, and becoming acquainted with the organization’s codebase and culture.

L2 Engineer: Junior Engineer

As engineers transition from beginners to contributors with a bit more experience, they move into the Level 2 software engineer or Junior Engineer role. At this stage, their knowledge begins to take shape, and their contributions become more impactful, although they still typically need some guidance. A picture of an L2 engineer usually looks like:

• L2 Engineer Experience: About 1–3 years in the field.
• L2 Engineer Responsibilities: Work on small to medium-sized tasks independently but may still require guidance for larger or more complex issues.
• L2 Engineer Skills: Have proficiency in one or more programming languages. Starting to develop an understanding of system design and architecture.
• L2 Engineer Growth Path: Focus on improving problem-solving skills, deepening knowledge of systems, and expanding toolset proficiency.

L3 Engineer: Software Engineer / Developer

The title “Software Engineer” is emblematic of a professional’s growth from a learner to a dependable contributor on the team. Falling under the Level 3 software engineer designation, these professionals have accumulated vital hands-on experience and have started to make their mark in the software development lifecycle. An L3 engineer typically looks like:

• L3 Engineer Experience: Roughly 3–5 years of experience.
• L3 Engineer Responsibilities: Handle a broad range of tasks, from bug fixes to feature development. Can design components, but might need assistance with complex system design.
• L3 Engineer Skills: Solid understanding of algorithms, data structures, and system design principles. Has started to specialize in certain areas (e.g., backend development, front-end, DevOps).
• L3 Engineer Growth Path: Expand domain knowledge, mentor junior engineers, and play a larger role in system and architecture design.

L4 Engineer: Senior Software Engineer

Ascending to the rank of a Senior Software Engineer (Level 4 software engineer) signifies a significant milestone in an engineer’s journey. Equipped with years of experience, these individuals play pivotal roles in driving projects and are recognized pillars in their teams. An L4 engineer often has:

• L4 Engineer Experience: 5+ years in the field.
• L4 Engineer Responsibilities: Lead major product features and assume responsibility for the quality and delivery of their code. Participate in architecture reviews and technical design.
• L4 Engineer Skills: Deep expertise in certain areas. Strong grasp of system design, architecture, and trade-offs. Able to mentor junior engineers effectively.
• L4 Engineer Growth Path: Influence the broader engineering team, provide technical leadership, and drive engineering best practices and standards.

L5 Engineer: Staff Engineer/Principal Engineer

Achieving the Level 5 software engineer designation, either as a Staff or Principal Engineer, is a testament to an individual’s profound expertise and influence in the software engineering realm. These experts are not just contributors; they’re visionaries who guide technical trajectories. An L5 engineer often looks like:

• L5 Engineer Experience: Varies, but typically 8+ years.
• L5 Engineer Responsibilities: Make critical decisions on architecture, design, and technology choices. Act as a technical beacon for the organization.
• L5 Engineer Skills: Recognized expertise in one or more domains. Strong strategic and architectural vision. Excellent problem-solving and systems-thinking abilities.
• L5 Engineer Growth Path: Continue to push technological boundaries, lead complex projects, and mentor multiple teams or an entire engineering department.

L6 Engineer, L7 Engineer, and Beyond

Beyond the structured tiers leading up to L5, there exists a realm where engineers are more than just contributors—they are industry trailblazers. Those who reach beyond L5 into Level 6 software engineers or Level 7 software engineers often hold titles like “Senior Staff Engineer” or “Distinguished Engineer.” These individuals not only shape their organizations but often set standards for the entire industry.

Software Engineer Levels Provide Guidance for Both Employers and Developers 

While these designations serve as a guideline, it’s crucial to note that the specifics can vary by company. Some organizations might have more software engineer levels, while others have fewer. Responsibilities, titles, and expectations might also differ. However, understanding these general definitions provides a solid framework for comprehending the hierarchy within software engineering. As professionals progress through these levels, they not only contribute more value to their organizations but also solidify their standing in the vibrant community of software engineers.

What about salaries? Salaries are dependent on specific role, geography, and more and are very important for finding great matches for your role and available developers. 

Interested in learning more about how Terminal recruits different levels of software engineers and ensures you’re getting the right talent? Contact a talent expert today!

FAQ

What is a software engineer level?

An engineer’s level refers to the engineer’s seniority and role within an organization. Starting with Level 1 (L1), the software engineer levels advance from beginner or entry-level to the most senior positions. This is a way to describe and evaluate the engineer’s career roadmap, compensation, and responsibilities.

What are the software engineer levels?

While software engineer levels sometimes have different labels at various organizations, the general framework begins with L1, or entry-level. Levels can advance all the way up to L7, denoting a senior or distinguished engineer, or even beyond. Those at the most advanced levels might hold titles such as Engineering Director or Chief Technology Officer (CTO).

How much do software engineers at different levels make?

Software engineers earn an average of $184,000 per year in the US. The range varies widely according to level, as well as other factors, including location and education, with L1s earning an average of $108,638 and L7s earning $395,249. Learn more about global software engineer salaries with our Remote Software Engineer Salaries tool.

How do I determine which level of software engineer to hire?

When determining which level of software engineer to hire, assess factors like the role’s responsibilities and scope, the size of your organization, your current team composition, and specializations needed. Consider the benefits and drawbacks of each level; for example, an L1 is the most cost-effective and can grow with your organization, while an L3 or L4 offers greater independence and expertise.