Pay Me More, Please.

How does the broader market decide how much to pay someone? How are you paid? How was that decided? Let’s dig?

Hello!

Today, we’re diving into something that just might change the way you see your career. And your paycheck. And your perspective on the capitalist economy.

Have you ever wondered why some people earn more than others, even when they seem to be doing the same amount of work in the same amount of time?

Growing up, I used to think that hard work alone was enough. That is the way of the world and that’s how my parents did it. During my late teens I understood that working smart is more efficient than working hard (the classic donkey example). And when I entered the corporate world, I understood there has to be a combination of working hard and smart together to really make an impact and get recognized.

Until 2024. Until 2024 that was the case. And then the perspective on smart work and hard work changed. And it changed the way I looked at the corporate world. I realized that the way you think about problems, not just the effort you put in, determines how much you earn.

Anddd it all comes down to the level of abstraction you can work at. Read this line again. It all comes down to the level of abstraction you can work at. The more sense you can make from the abstraction you are presented with, the higher your level gets, and the more valuable you become. What an amazing hierarchical structure, no?

Let’s break it down in a way that actually makes sense.

Level 1: Here’s the problem, the solution, and how to implement it.

This is the most basic level. Very simple to understand. You are like a baby in a shell. Just coming out. You’re given a task, you are also give the solution, and you are also given very clear instructions on how to execute it. Your only job at this level is to follow the steps and execute on the instructions given. No thinking required.

💡Example: A customer support agent in a SaaS company follows a script to answer client queries. If an issue falls outside of predefined responses, they escalate it to a higher level.

You do this repeatedly until you become an expert AND you have the drive and innate intelligence to want to move up the ladder. A combination of these two sets you up to progress to 2nd level.

Level 2: Here’s the problem and the solution. Figure out how to implement it.

Now, you’re trusted to execute but need to figure out the best way to do it. There’s some autonomy here, but you’re still mostly working within a defined scope. Think of it as being given the permission to roam around freely in the playground but you can’t decide the size or location of the playground. You have to operate within a limited scope defined for you by your manager.

💡Example: A junior software engineer is assigned a feature and given a high-level architecture plan. They write the code, test it, and integrate it with the system without needing further instructions.

This is a nice area to be. You are executing but also thinking about the best way to execute. You are being actively supervised so ultimate accountability is not on you. This is also an area you want to deeply think about who is mentoring you. Finding great thought leaders can really accelerate your critical thinking during this stage.

Level 3: Here’s the problem. Figure out the solution.

Welcome to middle management

This is where things get interesting. Instead of just executing, you now have to create the solution. You’re problem-solving, which means more value and better pay. This is also an interesting area because you are now responsible for the outcome AND you are figuring out the solution that would yield the highest return at lowest possible cost. When companies state they are looking for “candidates with problem solving skills” this is exactly what they mean here.

💡Example: A growth marketing lead at a tech company notices a drop in conversion rates. They analyze data, identify bottlenecks, and develop new campaign strategies to improve results.

You can stay at this level for a longgg period of time. The depth and the complexities of the problem increase. You are becoming a subject matter expert and now you are learning to know your domain and area of work inside out. This is an area which creates specific niches like Operations Expert, Marketing Expert, Human Resource Expert etc.

Level 4: Here’s a list of problems. Identify the most impactful one to solve.

Welcome to senior management

Now instead of being handed a single problem, you’re looking at multiple issues and choosing the one that will have the biggest impact. You finally learn that resources are scarce, you need to find ways to stack rank problems, impact size them, estimate the time needed to solve them and start solving the problems that bring the highest impact in the lowest possible time.

💡 Example: A product manager receives multiple feature requests from users, sales teams, and executives. They analyze customer needs and business goals to prioritize which feature will bring the most value.

This is technically where most people plateau (myself included). Either it is too hard to break to the next level or the corporate life starts sucking the soul out of you and you start questioning whether all this effort is even worth it.

You also are likely to face the Adulthood Crisis which typically means that you start questioning your values and principles and it intertwines with your career choices as well.

Level 5: Find all the problems and determine which are worth solving.

Hello Hello Leadership

At this level, you’re proactively identifying problems before they’re handed to you. You’re thinking strategically, prioritizing issues, and driving change.

💡Example: A director of operations at a fintech startup notices inefficiencies in how the company handles payments and compliance. They identify gaps, propose automation solutions, and improve workflows to scale operations. They also have a long term view so they influence culture, looking at hiring needs, revisits org. structures and create an environment for cross functional collaboration to drive bigger changes.

It is a very interesting place. You are a bit hands off with the day to day and more focused on quarterly and yearly impacts. You start acting as an influencer and start to rally people to drive towards a common objective. By this time, you’ve learned the art of upwards and downward communication and you know who, what and when needs how much information to get the job done.

It’s a high pressure role because if you are not strategic enough, your initiatives can hurt the company really badly and vice versa, your initiatives drive the biggest impact in your vertical.

Level 6: Predict future problems and create systems to prevent them.

Executive Team

This is the highest level. You’re not just solving problems. You’re preventing them before they even happen. This is where CEOs, top executives, and high-level strategists operate.

💡Example: A CTO at a European neobank predicts regulatory changes that could impact the company’s growth. They proactively work with legal teams and build adaptable systems to ensure compliance ahead of time.

Level 7: Define the game itself

Not much to say here. Think of people like Steve Jobs, Jeff Bezos and alike. They are true innovators, industry disruptors and drivers of economic changes.

Level 8: Architect of Reality

Not much to say here either. People like Elon Musk, Einstein, Martin Luther King. They think in a different way. Perceive the world in a different way. Have an operating style like no other.

So, Where Do You Stand?

Your income is directly tied to how high up this abstraction ladder you can operate. If you’re stuck at Level 1 or 2, it’s time to start thinking bigger. The more problems you can solve independently and the more strategic your thinking the more valuable you become.

But do bear in mind that the fruit looks juicer only from afar. You should know which level you want to mature and plan something great for yourself, by yourself. And get financial freedom!

Tonight, just lay on the bed, 20 minutes before you sleep and question

1. Which level are you at today?

2. And more importantly, what’s your plan to level up?

3. And even more importantly, if you want to level up, what is your WHY of doing so?

Stay financially sharp! 🚀

Riz