Dive Brief:
- Most workers (92%) believe that companies use inflated job titles to present the illusion of career growth, all while withholding raises and real advancement, data from MyPerfectResume suggests.
- Similarly, 2 in 3 workers have noticed that companies are giving out “impressive-sounding titles” without better pay more often than in years past.
- Not only did workers report being given titles without raises or better growth opportunities, but they also said they felt afraid to negotiate — with 15% even accepting a lower salary for a more senior title.
Dive Insight:
Previously, experts have warned that title inflation was on the rise. In 2022, one leader at an executive search firm blamed startup culture, saying these employers were unable to pay competitively and compensated workers with bigger titles. (In MyPerfectResume’s report, 91% of survey-takers said they believe employers use title changes to avoid giving raises.)
Similarly, in 2023, workplace experts had clocked that companies were increasingly using job titles to attract talent. Management advisory firm Pearl Meyer surveyed more than 400 public, private and not-for-profit organizations, and found that 54% were using titles to attract talent. This was a 35% jump from 2018; researchers acknowledged that this behavior was occurring in response to an economic lull.
“This data may indicate some employers are recognizing that in the absence of large compensation increases, they need to offer something to key employees,” Susan Sandlund, managing director and leadership practice lead at Pearl Meyer, said in a statement, acknowledging that this could be a beneficial shift overall for how HR thinks about total rewards strategy.
“However, I would counsel organizations to likewise focus on career development opportunities and keep a close eye on maintaining a positive corporate culture. These elements are proven retention tools,” Sandlund said.
Further, McLean and Co. researchers suggested that title inflation can lead to other internal issues, besides an employer branding mismatch.
“Without clearly defined job levels and criteria, internal approaches to job titling, pay grades, and career paths can be subject to bias and favoritism. A clear and defined job architecture framework removes the guesswork, decreases liability, and supports internal equity,” Amani Gharib, director of HR Research and Advisory Services at McLean & Co., said in a statement.