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Title Inflation (yep it has a name)

Title Inflation (yep it has a name)

TitleInflation

We promote people into titles faster than they can grow into them. Then we act surprised when that person can't actually move anything or lead anyone.

Now, job titles are interesting things...

Conceptually you would likely expect a job title to denote function, perhaps, seniority and or level of competence in the role. People hang a lot on a title.

But have you experienced it? You run into someone who is the "VP of Suchandsuch" who has no real authority to act and commit on behalf on the organization. Or lacks the skills necessary to manage their function and teams in the organization.


It's called title inflation and it is a symptom of short-term thinking.

👉 It's a cheap retention and attraction tool. In competitive markets or scaling environments, companies can't (or won't) always match market pay or build proper career ladders, so they offer perceived status instead. You can see it in the increases in "Lead," "Senior," and "VP" titles attached to roles with very little experience.

👉 It signals legitimacy externally. Startups and growing teams use fancy titles to look more established to candidates, investors, and partners.

👉 It feels like you fill gaps quickly. When you need a "head of" something and the bench isn't ready, the easiest move is to retitle or promote and hope they grow into it.

But therein lies the problem: organizationally you don't build real capability.

Impressive looking titles that force those above them to cover the gaps pulling from their best use and duties. It's a nasty spiral.


How do you avoid it? It's not easy but there are some practical moves:

💪 Build and enforce a real leveling framework. Define what each title actually means in terms of scope, authority, impact, and required capabilities. Use it for every promotion decision and calibration.

💡 Promote on demonstrated readiness, not potential or pressure. "High potential" is fine for development plans. It's a bad reason to hand someone a title they can't yet carry. Give them the stretch with support, not the title first.

👀 Audit titles periodically. Ask: "Does this person's actual decision rights, scope, and demonstrated judgment match the title?" If not, either change the role or adjust the title. Both are valid.

🚀 Stop using titles as the primary reward. If someone needs recognition or more money, address those directly. Titles should be the last thing you give, not the first.

It can feel tough at the time but titles that outrun capability don't create strong organizations. They create fragility.

Real strength and value comes from making the title the last thing someone earns, not the first."

 

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Sunday, 16 August 2026