In software engineering, some companies have much higher standards than others. I'm just guessing, but often this situation happens when you are trying to step

In software engineering, some companies have much higher standards than others. I'm just guessing, but often this situation happens when you are trying to step up from a lower quality employer to a higher quality employer. Money is more meaningful than titles. Would you be making more money as an Engineer II at the new company than as a team lead at the old company? If you aren't, then it's probably a step backward. If you would be making more money, then this is a step forward. In fact, it's a great opportunity, because you can get even further in your career by getting promoted to the "senior" level at your new workplace.