Job title inflation, harmful practice

Even if it is an ongoing trend for most industries, a study by Robert Walters Philippines said “job title inflation”can potentially lead to challenges for both employers and employees rather than a remedy in augmenting the workforce.

Job title inflation refers to a practice by companies to offer inflated or exaggerated job titles that may not accurately reflect responsibilities, seniority or even the correct pay.

Based on the study covering the previous year, there has been a noticeable rise in job title inflation among employers.

Positions with titles such as “directors” have seen a significant 34 percent increase and a 22 percent increase in titles like “presidents” for jobs intended for professionals with only two years of experience.

“While using inflated titles may be seen as a strategy to attract and retain talent, it is crucial to carefully consider the implications when making hiring decisions, as this can potentially lead to challenges for both employers and employees alike,” the study’s observations and insights from Robert Walters Philippines said.

Attracting, retaining talents

Job titles and promotions are valued by professionals. Based on LinkedIn polls conducted by Robert Walters Philippines in January, 92 percent of professionals agree that the job title is important when applying for a role.

Among young professionals, 23 percent also expect to be promoted within 12 months of working in a company.

While some companies have tried inflating job titles, the success rate varied.

Among companies, 38 percent of hiring managers surveyed shared that they have or are considering inflating a job title to attract or retain professionals to a role within their organizations.

However, only 3 percent shared that this move has worked to its desired effect while a significant 59 percent have not adopted this strategy at all.

Inflating job titles can present challenges, as professionals may not view them as a meaningful indicator of seniority.

According to Robert Walters Philippines’ findings, factors such as managing a team (44 percent) and the perceived importance of the role (41 percent) hold greater weight in determining seniority.

Surprisingly, only a small percentage (15 percent) consider a C-Suite or Head-of title as a true sign of seniority, which underscores the notion that while an inflated job title may seem appealing, factors such as team leadership and the perceived significance of the role are more influential in establishing seniority than the title itself.

While job title inflation may offer certain advantages, it also carries the risk of confusing the actual roles and responsibilities associated with these positions.

“Using overly inflated titles may lead to disillusionment among employees if their job titles do not accurately reflect their duties or level of seniority,” said Jayson Mendoza, manager of human resources and industries, at Robert Walters Philippines

“It is worth noting that this trend does not apply to all industries, but is commonly seen in technology, startups, digital media, marketing, advertising, and professional services sectors due to the intense competition for talent and strong reliance on innovation and creativity,” Mendoza added.

With this, Robert Walters Philippines strongly advised hiring managers to exercise caution and thoroughly evaluate the situation before considering the option to inflate a job title.