Why Your Job Title Matters More Than You Think
The hidden impact of titles on salary, career progression, and market value
Popular advice tells you that your title doesn't matter. It's about what you do. While I agree to a certain degree, if you are working in a market where salaries are drawn based on market values, then titles matter, a lot. They can shape your career trajectory in unexpected ways.
Monetary value
Some titles get paid more on average. Let's take 2 roles: Business Intelligence Analyst and Data Engineer. You were recruited in the BI side but your actual role is Data engineering. The average salaries for both are quite different. According to Levels.fyi, Data engineers get paid, on average, US$205,000 while Business Intelligence Analysts get paid around US$154,000 in San Francisco. This discrepancy raises questions: Either your organization does not know the titles for the types of roles the organization needs (in which case they need to figure out) or they are outright picking roles that are relevant in your domain, more tangential to your role but is paid less on average in order to save money. Both scenarios can impact your long-term earning potential.
Resume scan issues
It is a well-documented fact that recruiters spend around 7 seconds on a single resume. So, during those seven seconds, if they don't see the accurate title in your resume, they might skip a section of your work experience altogether and go for what they believe is relevant. This could reduce your chances overall of getting your resume selected. The mismatch between your actual role and your title could haunt you in future job searches. Some advice says to change the title to something more relevant, but it is debated whether it could be considered lying or deceiving the recruiter, so do it at your own risk. It's a delicate balance between accuracy and marketability.
I think statistically, in a world where there are lots of marginalized communities that get paid less, these titles are a sort of legal workaround for paying people less. It's a subtle way inequalities persist in the job market. Of course, if you are a startup and compensate a lot more than market trends to your employees, you may knock yourself out and call them meme officers or something. Creative titles can work when backed by fair compensation.
I’m sure this blog would be considered a highly critical take on the issue. I just want to find ways to create a more equitable market for everyone.
Overall, I think most organizations should stick to known, market-recognized names, compensate people fairly for their time, and use names that reflect the real work of that role. This approach benefits both employees and employers, fostering transparency and equity in the long run. Your title might seem like just a label, but it carries weight in ways you might not expect.