Are job titles that important? Is everyone at your company a VP?

In this article, a CEO who doesn’t want to be known as the CEO, argues that job titles create artificial hierarchies in the workplace that diminish collaboration and communication. He says, “I didn’t want the 23-year-old to be afraid to speak up in a meeting because they weren’t a vice president, and I didn’t want people’s egos to get in the way of doing great work.”

Sometimes job titles and the recognition and rewards related to promotions are a motivating factor for employees. This can lead to title inflation or confusion in fast-growing organisations. Some companies get around this by giving out different kinds of awards that come with salary increases matched to the company’s values.

As organizations become more complex job titles can help clarify decision-making levels and functional expertise. At a company with 300 employees you might be able to know everyone but as organizations become more complex, job titles can help to navigate to the right internal resource or partner.

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