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Updated Jul 25, 2024

What’s in a Name? How to Choose the Most Appropriate Job Title

Good job titles can help you attract top talent, increase employee motivation and satisfaction and build an organizational structure.

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Written By: Skye SchooleySenior Lead Analyst & Expert on Business Operations
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Hiring a new employee is a detailed process that requires various steps and decisions. You must define your new team member’s roles and responsibilities, write a clear and accurate job description and build a competitive compensation package. However, you may make the mistake of not carefully and thoughtfully determining the new employee’s job title. 

Although some people may tell you that job titles don’t matter — particularly at a startup — they do. If you’re in the process of staffing your business or managing your startup’s organizational structure, read on to learn why job titles matter and how to select them effectively.

How to pick a great job title

Choosing the right job title can be tricky, especially when determining the title for a position that encompasses multiple roles and responsibilities. However, every employer should take the time to develop a thoughtful strategy for naming positions and assigning titles, regardless of the company’s size.

Here are a few points to consider when trying to select accurate job titles that incorporate the many hats worn by your employees.

1. Develop a job title protocol.

Although every business uses titles in distinct ways to meet unique needs, it’s essential to develop a system for generating titles early on. Being consistent with the way titles are formed helps avoid confusion and disparities, especially among employees who hold multiple roles and those who may have similar responsibilities but end up with different titles. 

Marielle Smith, head of people operations at Material Security, advises asking the following questions when developing job titles: 

  • Does the title make it easy to interpret the person’s role at the company?
  • Does the title reflect the person’s area of expertise, level of experience and seniority?
  • What impact will the title have on a person’s career trajectory?
  • Will the title be taken seriously by others?
  • Will the title attract top talent or turn them off?

By honestly answering these questions, business leaders can create a framework for titles that is uniform and responsive to their organization’s specific needs while focusing on employees’ career development and professional growth.

2. Focus on primary responsibilities and duties when giving job titles.

When employees have multiple responsibilities in an organization, but most of their day-to-day functions fall within one particular department, it makes sense to link their title to that specific business area. Stephanie Troiano, an executive recruiter at Wimbush & Associates Inc., recommends that employers start by understanding the most critical aspects of their staff’s position.

“Think … first in general terms in order to come up with an umbrella title or department that they can fall into,” Troiano advised. “The idea is to try and categorize their duties and position broadly, then narrow down from there.” 

3. Let employees pick their job titles.

When struggling to find the ideal title for the employee who does it all, businesses can take the pressure off by realizing that the decision doesn’t have to be solely their own. Companies can empower staff to select their own job titles. After workers have been in a role for a trial period and know what the position involves, you can encourage them to name their own jobs within agreed-upon parameters.

“We have found great success in letting our employees figure out what kind of job title they would like to have and present us with their name choice and reasoning behind it,” said Deborah Sweeney, CEO of MyCorporation.com. “Then, we decide if it is a fit for them or not.” 

Did You Know?Did you know
Having a say in their job titles can motivate your employees, give them a sense of autonomy and validation and make them feel they're part of a forward-thinking company that matches their values.

4. Have fun but think long-term when giving job titles.

When an employee does it all, it may be tempting to come up with a fun and whimsical title that encompasses the spirit, if not the content, of their job. While there’s a time and place for unique and creative titles — Disney employs “Imagineers,” and VaynerMedia has a chief heart officer — it’s crucial to consider how these titles will be perceived outside the company and translated to other workplaces.

A unique title that’s empowering within one organization may seem vague or unclear to clients, recruiters, job seekers and other firms. An unclear title can ultimately hinder the employee and your business. For example, calling someone a “crisis ninja” or “in-house philosopher” raises questions rather than provides answers about what the titleholder does. 

Smith also noted that companies must consider whether the titles they create will reflect well on the business now and in the future. For instance, consider what the next job title will be as your staff is promoted. “As the company matures, they will want to attract top talent, and senior talent often want titles that reflect their hierarchy within the company or they’ll find the title and position they want somewhere else,” Smith cautioned.

TipBottom line
One way to have both creative and practical job titles is to create imaginative, inspirational titles to use internally but opt for more traditional titles when dealing with outside entities.

5. Avoid job title inflation.

All your employees are critical, especially if you’re a small operation, and you want their titles to carry the weight of their value. But it’s a poor business decision to have five vice presidents in a company of six people just so everyone feels good. Consequently, companies should steer clear of title inflation, even when trying to recognize the multidimensional roles of staff members.

Although it’s cheaper to hand out fancy titles than give out raises, there are often unintended consequences when titles are doled out with ease. Title inflation can lead to tension among colleagues and employees who suddenly feel their old responsibilities are beneath their new titles. Often, the best policy is to keep it simple and pass over the impressive-sounding titles in favor of logical ones that speak directly to the needs and goals of your organization.

Common job titles and levels

In a traditional organization, you can expect to see a hierarchy of employees in executive roles, middle and first-level management and intermediate and entry-level roles. Depending on your company’s needs, you may even have a board of directors. Here are some common business job titles and what their positions entail.

C-suite executives

Excluding a board of directors, the C-suite is the highest level of the organizational hierarchy. These employees are senior executives responsible for big-picture thinking. Standard C-suite job titles can include CEO, chief operating officer (COO), chief financial officer (CFO), chief marketing officer (CMO), chief product officer (CPO) and chief information officer (CIO).

Vice president or director

The following level in the chain of command includes the organization’s vice presidents (VPs) and directors. These employees are considered middle management and often lead entire departments. To create a title at this level, you can pair the term “vice president” or “director” with the name of the employee’s department. For example, you may have a VP of production, VP of operations, director of marketing or sales director.

Manager or supervisor

Below the VPs and directors are managers and supervisors; these employees are considered first-level management. While managers may oversee some employees or a subdepartment, they typically are also responsible for day-to-day operations. 

Common manager titles you can expect to see at a startup include the following: 

Individual contributor

Individual contributors can consist of entry-level, intermediate and experienced staff. These employees are responsible for day-to-day projects and assignments. As the title indicates, these individuals contribute to the organization’s success through their work and don’t typically manage other people.

FYIDid you know
The best human resources software includes functions to visually display your company's organizational hierarchy so everyone clearly understands job roles and responsibilities.

Why job titles matter

Job titles do more than just define an employee’s role with the company — the right job title benefits your business and future team members. Here are the biggest reasons job titles are so crucial: 

  • Job titles can motivate employees: The right job title can be incredibly motivating for staff members and encourage them to reach their full potential within the role. They’ll enjoy greater job satisfaction and potentially achieve promotions and earn higher pay. Additionally, a motivated workforce can lead to higher employee retention
  • Job titles communicate responsibilities: A good job title communicates an employee’s responsibilities to others within the company clearly. This clarity will help your employees understand who is responsible for doing what within the organization. 
  • Job titles can help you attract and retain top talent: A well-crafted job title can help you attract the right employee for the role and create a clear organizational structure. It can give employees the confidence to excel in a role to which they’re well-suited and make them less vulnerable to employee burnout. Enhanced employee satisfaction and commitment will also help reduce turnover. 

It’s important to note that employee job titles are not a one-and-done deal, particularly when it comes to startup job titles. As your company grows and employees flourish in your organization, new job titles may emerge as your team members’ career paths take shape. 

Jamie Johnson contributed to this article. Source interviews were conducted for a previous version of this article. 

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author image
Written By: Skye SchooleySenior Lead Analyst & Expert on Business Operations
Skye Schooley is a dedicated business professional who is especially passionate about human resources and digital marketing. For more than a decade, she has helped clients navigate the employee recruitment and customer acquisition processes, ensuring small business owners have the knowledge they need to succeed and grow their companies. At business.com, Schooley covers the ins and outs of hiring and onboarding, employee monitoring, PEOs and HROs, employee benefits and more. In recent years, Schooley has enjoyed evaluating and comparing HR software and other human resources solutions to help businesses find the tools and services that best suit their needs. With a degree in business communications, she excels at simplifying complicated subjects and interviewing business vendors and entrepreneurs to gain new insights. Her guidance spans various formats, including newsletters, long-form videos and YouTube Shorts, reflecting her commitment to providing valuable expertise in accessible ways.
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