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Good job titles can help you attract top talent, increase employee motivation and satisfaction, and build an organizational structure.
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 team member’s job title.
Although some people may tell you that job titles don’t matter, particularly at a startup, research shows they do. If you’re in the process of staffing your business or managing your startup’s organizational structure, read on to learn how to choose a job title and see common job titles you may want to consider for your business.
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 best practices for choosing accurate job titles that incorporate the many hats worn by your employees.
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, told us she advises asking the following questions when developing job titles:
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.
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 said. “The idea is to try and categorize their duties and position broadly, then narrow down from there.”
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, president of Deluxe Corporation. “Then, we decide if it is a fit for them or not.”
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 said 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.
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.
Learn more about common job title mistakes below.
In a traditional organization, you can expect 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.
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:
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:
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 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 independent work and don’t typically manage other people.
Different startup sectors require unique approaches to job title strategy, reflecting industry norms, regulatory requirements and talent pool expectations.
Tech startups often benefit from clear, technically descriptive titles that immediately communicate expertise level and specialization. Common effective patterns include:
Avoid overly creative tech titles like “Code Wizard” or “Data Ninja” that may not resonate with experienced professionals or enterprise clients.
Retail startups should align with established industry terminology while allowing for growth. For example:
These titles translate well when hiring from established retail companies and working with suppliers or partners.
Professional service startups often benefit from titles that convey expertise and authority to potential clients. We recommend:
Professional credentials and regulatory requirements particularly matter in service industries.
Highly specialized startups should use titles that reflect technical expertise while remaining accessible. These include:
These industries often require specific educational backgrounds and certifications that should align with title expectations.
Before assigning job titles, startup founders and business owners must understand the legal landscape surrounding employment titles. The Equal Employment Opportunity Commission (EEOC) prohibits employers from using job titles or employment policies that disproportionately negatively affect applicants or employees based on protected characteristics, including race, color, religion, sex, national origin, age, disability or genetic information.
Key legal considerations include:
Learning from others’ missteps can help startups avoid costly hiring and retention problems. Here are the most frequent job title mistakes and their real-world impacts.
A common startup mistake involves hiring a “VP of Sales” when the company actually needs someone for customer development and market validation. This mismatch occurs because traditional sales roles assume:
Early-stage startups lack these foundations. Instead, business owners need executives comfortable with learning and discovery rather than pure execution, who can handle daily change while operating without a clear roadmap. Otherwise, expect high executive turnover, failed customer acquisition strategies and wasted resources on inappropriate sales infrastructure.
Startups that hand out senior titles too early face several problems, including:
While unique titles like “chief happiness officer” or “marketing rockstar” may seem engaging internally, they create external challenges:
Some business owners and startups inadvertently create legal risks through poor title choices. Be aware of:
Failing to match industry norms can signal inexperience. For example:
Misaligned job titles may lead to difficulty attracting experienced industry talent and establishing credibility with sector-specific clients and partners.
Recent academic research reinforces the importance of thoughtful job title selection. According to Gallup’s 2024 workplace data, only 33 percent of employees are engaged in the workplace, and “not engaged or actively disengaged employees account for approximately $1.9 trillion in lost productivity nationally.” Job titles and role clarity play a crucial role in this engagement equation, as they directly impact how employees perceive their value within the organization and their career progression potential.
Studies referenced in the IIMT Journal of Management in 2024 show that employee engagement influences “well-being, increased life satisfaction, retention and less turnover intention.” This can also reduce the risk of burnout. When employees feel their titles accurately reflect their contributions and provide growth opportunities, they demonstrate higher levels of commitment and performance.
Here are the biggest reasons job titles are so crucial:
It’s important to note that job titles are not a one-and-done deal, particularly when it comes to startup job titles. As your company expands and employees flourish in your organization, new job titles may emerge as your team members’ career paths take shape. Business owners should follow these tips for implementing and auditing job titles as their business grows:
The key is maintaining the balance between recognizing employee growth, supporting business needs and preserving organizational credibility as your business scales.
Jamie Johnson contributed to this article. Source interviews were conducted for a previous version of this article.