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Hey, it’s Collin. Welcome to Engineering Echelons, a newsletter full of ideas and insights to help engineers excel at management.

Here’s what I’ve got for you this week.

  • New and noteworthy news

  • A management perspective to consider

  • Leadership insights to delve into

  • And more…

First time reading? You can subscribe here.

Alright, let’s get into it.

Noteworthy Headlines

White-collar workers are stalling out (WSJ)

Highlights:

  • Roughly a quarter of American professionals hit a wall in their careers before their peak earning years, going at least five years without a real boost in pay or position.

Contractors added 17k jobs in May, with more hiring expected ahead (ENR)

Highlights:

  • The 17k hires in May nearly match the 18k hires made in April

  • If Congress fails to pass a new highway and transit bill by the end of September, construction employment levels are likely to suffer

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Management Perspective

According to the Peter Principle, an employee who excels at their role will be promoted into a new role. If they excel in that role, they will be promoted again to another role.

This cycle continues until they ascend to a role where they no longer succeed. Once that happens, they don’t get demoted to the last position they succeeded at. And they don’t voluntarily remove themselves from that role because they don’t want to relinquish their nice title and influence.

As a result, they are stuck in a position that they aren’t very good at.

It’s detrimental to them, their team, and the organization as a whole.

I call these people Peter after the Peter Principle. Sincerest apologies to everyone actually named Peter.

The more Peters you have in your organization, the more dysfunctional it will be. This seems pretty clear. So why does it happen in the first place?

Often, it’s because the organization has only one route for promotion: management.

For AEC firms that employ technically brilliant engineers, architects, and consultants, this is a recipe for organizational malfunction. Employees who are rockstar designers aren’t necessarily the ones who will be effective managers in charge of business operations, people conflicts, and project contracts.

To fix the issue, the business must decouple career advancement from people management.

Some businesses have dual career tracks. One is the technical path, where an employee can be promoted based on technical expertise. The other is the management path, where the employee is promoted based on business acumen.

There are other ways to prevent the Peter Principle from taking hold. But the bottom line is that management is a distinct skill that requires its own specialized training rather than a default badge of seniority.

Management Insights

Ray Dalio (founder of Bridgewater Associates) on extreme attributes:

“Most attributes are a double-edged sword that brings potential benefits and potential harm. The more extreme the attribute, the more extreme the potential good or bad outcomes it is likely to produce.”

Bob Iger (former Disney CEO) on staying humble as a leader:

“The moment you start to believe [when the world tells you how powerful and important you are], the moment you look yourself in the mirror and see a title emblazoned on your forehead, you’ve lost your way. That may be the hardest but also the most necessary lesson to keep in mind, that wherever you are along the path, you’re the same person you’ve always been.”

Morgan Housel (author) on planning:

“Planning is important, but the most important part of every plan is to plan on the plan not going according to plan.”

Management Resource

Remote work leaves younger workers sidelined (NY Federal Reserve)

Unemployment among young college graduates has risen significantly since the pandemic. The March 2026 unemployment rate for recent college graduates aged 22 to 27 was 5.6%, up from 3.6% in March 2019.

This post explores the potential impact of remote work on workers and companies.

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Or…

  • Let me know if you’ve found something worth sharing.

  • Let me know what challenges you’re having as a manager.

  • Let me know what challenges you see other managers having.

Send me an email at [email protected]

Looking forward to hearing from you. See you next time.

Collin

Engineering Echelons is a brand of Echelons, LLC

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