One thing that I think many are missing in their understanding, is that this gives Junior to Mid-level engineers a path forward and direction to improve. Often

One thing that I think many are missing in their understanding, is that this gives Junior to Mid-level engineers a path forward and direction to improve. Often it's the case an engineer will ask their manager "How can I improve or get to the next level?" and having reference documentation for how to impact an organization at a larger level is extremely handy. It also helps engineers relate their efforts to the bigger picture and help them formulate a vision for why we have a competency hierarchy and how to view it in terms of career frame-working. At my company we also have a very similar engineering career framework, but the goal isn't to push everyone into boxes, but rather to help engineers understand what it means to have a large impact on an organization. This usually translates to more cross-team responsibilities and deliverables over longer periods of time.