One way we try to combat this is the way you get salary increases is mainly through promotions. Promotions are based on reasonably solid criteria and you can go up for promotion anytime you want (max every 3 months). Engineers senior to you determine whether or not you meet the criteria in a forum that is loosely based on a thesis defense. you answer questions and show your work and how it demonstrates the skills. People are either learning, executing, or teaching a skill.

People that dont get promoted get very few raises so are incentivized to leave.

The levels are essentially:

1) learning core skills under heavy supervision

2) ability to develop a feature with moderate supervision

3) ability to develop a product as it was envisioned, independently

4) ability to conceptualize a product, kick off a new product, and change direction in the middle if need be

5) ability conceptualize a portfolio of products and how they interface

6) ability to run a business unit of products

7) ability to start your own company (at this point we fund people to start their own company)

There are more detailed criteria around leadership, growing other people, contributing to recruiting, understanding, finance/accounting (P&L), following a solid methodology, contributing to the intellectual property of the company, improving the operations of the company, ability to deal with various level executives outside the company, exhibiting the values, being an expert in something etc