Money or Job Title?

I recently read about the Chief HR Officer of a large software firm who once tried an experiment. He offered new hires in one of their new small divisions the choice between the title HR Manager and HR Representative. Although the Rep job was $1,500 a year more, most people took the Manager title.

A bicycle store owner once asked an HR consultant what he could do to keep his best employee from quitting. He could not afford to give him a big raise. The consultant said, “Give him a small raise and then ask him what job title he would like.” It turned out the title the employee wanted was Director of Bike Operations (DBO). Problem solved. The job title changed his attitude about his job sounded darn impressive to his friends too.

A survey by recruitment firm, Imprint Search & Selection found that:

• <!–[if !supportLists]–> <!–[endif]–>More than half of senior managers rated their job title as important to them, but only a third of non-managers held the same view.

• <!–[if !supportLists]–> <!–[endif]–>More than a third of the managers admitted they had already taken a title rise without a pay rise, compared with only one in five non-managerial staff.

• Senior managers were also much more likely to swap part of their pay rise for a title rise than the average worker.

It’s clear: job titles have value.

People care about their job titles. Sometimes they will even choose the better title over more pay. A recent graduate with a desire to move up in a chosen career may feel that acquiring a title that will look good on the resume is worth accepting a little less money. Recruiters have discovered that they receive a better response with well-chosen job titles.

My take is that if all else is equal, and the choice is title or money….choose the title. Of course, the problem is things are rarely equal. However, one of the best moves any HR player can make early in his or her career s to get a job title which places them ahead of their peer group. Most large companies are stingy with titles. Most would rather give money than titles. Accepting a higher title now will position you to as a ‘high achiever’ both within your own company and with potential future employers. And it will also position you better — as an affordable talent — to get more money later.

If you have the choice….take the title and run!