Cut Through the Confusion

What’s in a job title? Not much, necessarily. Or at least not as much as there used to be.

Consider a recent JobSage survey. In a poll of 300 hiring managers and more than 700 employees, nearly half of hiring managers (48%) said that job titles are less reliable indicators of skills and experience than in the past. Many employees apparently agree, with a nearly identical number of workers (46%) saying that job titles aren’t clear indicators of seniority. Another 28% report having had job titles that were “bigger than their experience.”

Kelli Mason, co-founder of JobSage, attributes much of this change to evolving candidate and employee demand.

“Many members of previous generations in the workplace expected to work their way up within the same organization over the course of many years, if not decades,” said Mason. “As a result, those employees had a longer timeline for promotions and title changes. Today’s employees, however, expect to be promoted much more quickly.”

To meet such demands—and to perhaps save money on raises—Mason foresees more employers providing new hires and even tenured employees with titles that match employees’ expectations, if not their experience. 

Weighing a Title’s Worth

Trying to make sense of applicants’ past titles adds a degree of difficulty to hiring managers’ jobs.

For example, JobSage found 40% of hiring managers indicating they’ve had trouble finding the right person for an open role, because candidates’ past titles are confused or overstated. In many cases, a candidate’s past designation oversells the actual duties they fulfilled, said Mason. 

“The most common example I see of an overstated title is one that includes the phrase ‘head of … ” she said. “Someone might be two years into their social media marketing career at an organization that has no other marketing staff, and [can] present themselves as the organization’s head of marketing. It might not be a lie, but it is certainly overstated and confusing.”

This lack of clarity can create problems for employers when such a candidate applies for a new role and is competing against individuals with much more work and management experience, “but who have not ‘led’ an organization,” added Mason.

All that said, the same JobSage survey found that title inflation can be a recruitment and retention tactic; a strategy worth noting in a competitive labor market like the current one.

For example, nearly one in five managers (19%) said they have offered employees new titles in lieu of raises. And, of all the managers surveyed, 34% said inflated job titles have helped them land a new hire.

The promise of an elevated title seems to mean different things to workers in different age groups. For example, 49% of Gen Z employees said titles are important to them, compared to 41% of baby boomers. And, from a retention standpoint, receiving a new title might also mean more to Gen Z: 37% of Gen Z workers said they would consider staying at a company longer if they got a title change, even in lieu of a raise. Just 29% of boomers said the same.

Ultimately, though, title changes don’t seem to have much power as a retention tool, with just 22% of managers saying that title changes have helped them hold on to workers. Nor do they seem to do much to inspire employee performance, with 20% saying the prospect of a loftier title motivates them to work harder, compared to 94% of workers saying the same about a potential raise.

Nevertheless, Mason notes that offering a more prestigious job title in lieu of a raise can be an effective recruitment or retention tool for companies on a tight budget, while adding that she “[doesn’t] think it should be the typical approach.”

She also advises taking this tack sparingly, “so that it remains meaningful to the candidate or employee you’re seeking to recruit or retain. If you take this approach regularly, your company could develop a reputation for inflated job titles, which would in turn make them less valuable as a recruitment or retention tool.” 

Paying Less Attention to Titles

It seems organizations are indeed putting less emphasis on past job titles when sizing up job applicants and making talent decisions.

For instance, nearly all managers JobSage surveyed (95%) report being focused on finding candidates with specific skills, with another 67% saying they listen for candidates’ fluency when they discuss their roles. Just 34% indicate they really consider previous job titles.

Mason recommends asking hypothetical questions in order to truly evaluate how applicants will perform in a given role.

“Ask candidates to imagine a situation they would actually face in the role, whether or not they’ve encountered it in the past, and to describe how they would respond to that situation,” she said. “Answers to hypothetical questions not only overcome confusion around past titles, but also enable candidates who haven’t previously had a certain professional opportunity to display how they would behave if given the chance.” The findings that employers are paying less attention to job titles shouldn’t come as a surprise, said David Ulrich, partner at The RBL Group, a Provo, Utah-based consulting and development firm.

“Anyone can conceive and publish a job title that reflects their personal ambition more than skills required. Candidate qualification is less about what one says they have done [or do] and more about the skills that others have seen them demonstrate,” said Ulrich, who is also the Rensis Likert professor at the University of Michigan Ross School of Business.

“It’s hard to believe that many would rely on job titles for exploring fundamental competencies since they vary so much by industry, company, function and person,” he continued, adding that determining whether a candidate is truly qualified is done by exploring their actual skills, and turning to those who have seen those skills in action.

“Skills are often seen by others, not just the candidate, so referrals from credible colleagues have more meaning. Also, examining skills in realistic job interviews, short internships, projects, or other settings may help qualify a candidate,” said Ulrich.

“Having multiple interviewers talk to candidates and exploring cases and responses helps. Even with sourcing and screening, success rates at selecting candidates is still iffy. Often, neither the candidate nor employer know if the job will work out. This is why short term ‘probationary’ work assignments sometimes helps.”