Over the years I have seen a lot of title creeping – which means that employees are getting titles that are hugely inflated, which makes them feel like they should be paid a lot more than what their job required of them.
Whether it’s the VP of Marketing or the Director of Sales, what is essential is that you look at all of the tasks and projects that are on that person’s list (or scorecard). Once you do that you can apply the proper title for that series of tasks and projects.
Remember, 20 years ago being given a C-suite title meant that you were a significant player in a major company or organization – titles were not handed out as easily as they are now.
So, here are the steps to remember:
- Start with listing the person’s tasks/projects
- Apply a proper title
- Do some research in your industry to find out what people usually are getting paid.
I also like to have three levels in place for every role.
Example: Head of Sales
You would have a director of sales, level one, two and three – and then they would go into VP of sales, level one, two and three. See how this makes the ladder bigger and allows room for growth as responsibilities increase and evolve? Doing this is a great way to establish your compensation and make sure that it’s tied to the roles and projects instead of their title.
This is one of the many things that we have covered at the COO Alliance events, and it continues to be a hot topic of conversation. Click here to apply, and join your tribe today.