Giving someone an inflated job title is a cheap tactic many businesses often use to retain employees - but it ends up harming both business and employee, says Pinar Akiskalioglu.

There’s a lot of talk about the cost of living crisis now, but I would like to talk about another type of inflation: the job title inflation.

The time-old trick of elevating job titles is a trend that has been around in the startup world for a while. Whether it’s simply a puffed-up title or an invented vanity title - “Customer Happiness Hero” and “Operations Ninja” are some of the ones that spring to mind - they’re often used as a way to recruit or retain talent without having to stump up the equivalent pay.

Now this tactic is filtering down to the wider business world. A recent survey by US recruitment firm Link Up recently noted that prior to the pandemic, job listings with a “senior” title comprised roughly 3.9% of job listings. In April 2022 this nearly doubled to 6.2%. This summer, accountancy firm EY made 679 UK associate partners’ job titles “partners” without their pay and conditions being changed.

But what is wrong with the founder of a cash-strapped small business doing this in today’s rocky economic climate? I would say not only is it short termist thinking - invariably it will only delay the inevitable and the employee will leave in a couple year’s time and you will have invested time and training for nothing - but also big-sounding job titles do nothing to boost a company’s reputation. I also agree with some experts who say that it could even call into question how qualified their existing teams are.

It is also bad for the employee too. They may apply for similar roles at other companies and find out they’re unqualified. They might be passed up for on job opportunities as recruiters assume they’re overqualified. And they can often find it hard to backtrack - accepting a lesser role in a big company may feel like your CV is going backwards.

I come to this perspective from having feet in both worlds - as head of marketing at a large FMCG corporation in previous years and now, as founder of two small businesses: personal care company, TAKK and business academy, Punk Business School.

In my previous role at one of the major beauty product manufacturers, I saw how layers of hierarchies created silos, stifled creativity and slowed innovation. When my team asked for ‘senior’ in front of their titles, I actively discouraged them for two reasons: Firstly, I didn't want them to settle with a senior title while doing the same job and have nothing to strive for. Instead, I encouraged them to spend their time getting ready for a real, more powerful role. And secondly, I tried to communicate how they could make real career steps - like getting more brand responsibility, or winning bigger categories - for more worthy career progression. That way they would have a real career story to tell.

In my experience, the world spends too much time obsessing about their status. The more obscure job titles do not mean anything to anyone externally and even the most common can be open to interpretation. Take ‘Head of’ - while it has become the most popular job title of recent years, it is also one which can vary wildly from company to company, depending on size and circumstance.

A more straightforward title structure — simple titles like ‘designer’ and ‘producer’ — is the best place to start. If you are faced with an employee demanding more, the best thing to do is to talk to them and find out their motivations. While it can often be title or money-driven, I’ve also come across other reasons. They may be worried about job insecurity, or looking for greater responsibility and wanting to work with certain people. If you don’t have the means to fix the situation, end the discussion. Don’t set a precedent you will find hard to stick to in future.

When recruiting, there is also a strong business case in taking time to find the right candidate who fits your company culture and shares your common goals and values. In my opinion, culture is by far the most important thing in a company and not enough leaders prioritise it. The importance of encouraging, motivating and nurturing a homogenous team in an open and transparent work environment can often be overlooked.

Too many layers of hierarchy can get in the way of this, as I discovered in my former corporate career. Now, more than ever, founders need to get down to basics and find better ways to reward their teams.

The secret to doing this is not complicated, or expensive. Just stripping away all the unnecessary management layers, cutting admin and meetings, getting to know the person, appreciating their talent and welcoming their uniqueness is enough to empower any employee and make their job more fulfilling. No fancy title required.