In short, managers kick off a feedback loop by trying to close the gap between their team’s current and desired performance. They have two options: 1) Drive short-term improvements by asking more from senior designers, increasing rewards for top performers, and creating upward pressure through reviews, or 2) Build long-term capability by investing in training, coaching, and career development for junior designers. But the feedback loops between these approaches push companies to prioritize hiring senior talent, as the immediate performance gains outweigh the diffuse returns of capability-building.