Maximizing human potential 2: A framework where impact is recognized and rewarded
At TIER IV, we are committed to our vision of making autonomous driving accessible to all. But achieving that goal means more than advancing autonomous driving – it also means continuously evolving the systems that support the people who create the technology.
Recently, we’ve been reviewing our policies and practices to create a workplace where employees can more easily embody our core values. Our goal is to create an environment where each individual can maximize their abilities, work in their own way, and collaborate with colleagues from diverse backgrounds while supporting and respecting one another.
This blog series highlights how we are building and evolving the systems that support employees. Through these posts, the HR team aims to share practical insights for anyone interested in how organizations can grow by focusing on both people and culture.
We hope these stories offer a glimpse into how we are reimagining the way people and teams work at TIER IV. In this second installment, Yuka Wakana introduces the Total Rewards program, a performance review system launched in October.
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When we began designing our new Total Rewards program, the first question we asked ourselves was: What do we value at TIER IV, and what kind of behaviors and mindsets do we want to recognize in our people? There are many ways to approach this – evaluating raw ability, competencies, roles, or jobs, to name a few.
In our case, TIER IV is experiencing non-linear business growth, and our systems need to reflect that dynamism. Autonomous driving is a nascent industry, and we encourage our members to work across boundaries without rigidly defining their roles. Based on this, we decided to define and evaluate employee grades according to demonstrated competencies rather than just ability.
Rather than looking only at whether someone has a particular skill, our evaluations focus on how much that skill is being demonstrated to create value for the company. With this approach, even early-career employees who make an impact can be promoted multiple grades, and the reverse is also possible. Even if someone receives a high rating one year, a change in their role or environment may result in reduced demonstration of competency the next year, leading to a lower evaluation. In theory, this system could allow for a salary increase of more than double, depending on demonstrated performance.
To define what each grade means in terms of competencies, we launched a working group made up of representatives from across departments. After several months of discussions, we carefully crafted the wording to reflect exactly how we want our people to grow. The final revisions took hours of detailed editing in collaboration with the CHRO. The working group members shared positive feedback, saying the new definitions clearly explain the expected level of impact and scope at each grade.
We also spent a lot of time discussing our career ladder. TIER IV is home to many brilliant engineers, and some ended up taking on management responsibilities by default, even though they may not have had a strong aspiration toward management. In such cases, their actual strengths were not always fully utilized. The new performance review system has served as an opportunity to improve that situation.
In the new system, we’ve distinguished between management and "individual contributor" tracks, with expectations and grade definitions established independently for each. This reduced gaps in expectations and gave us better visibility into talent allocation needs.
We don’t see management and individual contributor roles as hierarchical, they simply represent different responsibilities. We’ve introduced high-level roles such as fellow, distinguished engineer, and principal engineer, with compensation levels on par with those in management. While in many companies, management roles tend to offer higher pay, at TIER IV, we base our compensation on contribution to company value, not job type. Non-managers who drive significant impact will be compensated accordingly.
On the performance evaluation side, TIER IV previously did not disclose the logic behind salary increases or bonus calculations. After the CHRO was appointed in January 2025, he held 1-on-1s with about 100 employees, and we received feedback that the process was unclear. In response, we clarified and structured the calculation logic and made it fully transparent to all employees. This update has been positively received and aligns well with the culture of openness at TIER IV.
However, making the logic transparent requires a sound and explainable evaluation process. That’s why we’ve rolled out training not only for evaluators but also for those being evaluated. Good evaluations require a shared understanding and constructive engagement on both sides, so we implemented these programs in tandem.
As for compensation, TIER IV previously did not have formal salary ranges – only benchmarks based on headcount. We have now participated in external compensation surveys, benchmarking against dozens of companies, including global firms, and established competitive salary bands. Since our vision is to democratize autonomous driving, we believe it's essential to attract top talent to a new and challenging industry. We’re confident that these new ranges are something we can proudly stand behind. In employee briefings, I emphasized that it’s now our responsibility to justify this compensation level through business growth.
When we shared the new grade assignments, we encouraged managers to communicate them as opportunities for growth. Ultimately, we want every employee to thrive at TIER IV, and this update is an important step toward that goal. We will continue evolving our HR systems so that everyone can do their best work here.
Yuka Wakana, seated right, with members of the HR team
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TIER IV is always on the lookout for passionate individuals to join our journey. If you share our vision of making autonomous driving accessible to all, get in touch.
Visit our careers page to view all job openings.
If you’re unsure which roles fit your experience, or if the current job openings don’t quite match your preferences, you can register your interest here. We’ll contact you when a suitable role becomes available and arrange an informal interview.
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