Title innovation
by Miki SaxonOne way to take the temperature of the labor market is title bloat and title creativity; based on that, it seems to be heating up.
It also means that I get calls from clients asking what to do, so here are five simple rules to address title innovation in your organization.
- Absolutely avoid title bloat, especially where it contributes to compensation problems. For example, does giving someone a VP title, but not VP-level work, entitle that person to a bonus reserved for executives?
- People aren’t dumb, so don’t try and con them. Being called an associate, instead of an employee, may seem more respectful, but it doesn’t offset pay or benefits.
- Titles, even those that need some explanation, should be accurate enough that they don’t confuse internally or externally (vendors, customers, investors, etc.).
- Titles that reflect a new function should be formally announced, e.g., Director of Culture at Southwest Airlines.
- Be sure to ignore titles when you’re hiring. Lee Burbage, Motley Fool’s vice president of human resources says, “It’s the job description that matter…The only thing a title can tell me is a sense of progression.”