Do Any of These Situations Sound Familiar?
-
You aimed for a job title because it looked impressive on your résumé.
-
You got promoted with a flashy title, but your day-to-day responsibilities didn’t change.
-
You’ve compared your title to those of your colleagues.
-
You’ve questioned whether a coworker’s title matches what they actually do.
If any of these sound familiar, you’ve likely encountered what’s known as job title fraud—and you may be part of the problem or a casualty of it.
What Is Job Title Fraud?
Job title fraud—also known as job title misrepresentation—occurs when a job title doesn’t match the actual duties and scope of the role. It’s often used as a quick fix to attract or retain employees, or to satisfy a promotion request without a salary increase.
But these mismatches have a ripple effect. As pay transparency and equity become more prominent, title inflation is drawing attention globally—and many leaders are still unaware of how damaging it can be.
Why Call It “Fraud”?
The term “fraud” might sound dramatic. But let’s look closer. Merriam-Webster defines fraud as:
“An act of deceiving or misrepresenting.”
That’s exactly what happens when an employee receives a title that overstates the scope of their work—or when leadership inflates titles to delay a real promotion or avoid losing someone. It’s not always malicious. In many cases, it’s constructive fraud, meaning it wasn’t intended to deceive but still misrepresents the truth and leads to consequences.
For example:
-
An employee asks for a title bump to match peers or pad their résumé.
-
A manager agrees to prevent turnover, thinking it’s a harmless compromise.
-
HR is left out, and compensation structures unravel.
Who Does It Hurt?
Job title fraud creates long-term problems—for the individual, their team, and the organization.
To see how, consider two employees with the same title: Director.
Employee A: Director, Team |
Employee B: Director, Business Segment B |
Leads a team, resolves technical issues, and manages projects. |
Leads a department, sets strategy, and attends executive meetings. |
Reports to another director. |
Reports to the division’s VP. |
$90K salary, 10 years of experience, 5/5 performance rating. |
$140K salary, 10 years of experience, 5/5 performance rating. |
Employee A’s role doesn’t reflect the strategic scope typically associated with a director title. Employee B, however, performs true director-level work—but their contributions are diminished because others with the same title don’t meet that standard.
This creates internal confusion, damages morale, and undermines pay equity.
The Title Inflation Cycle
Here’s how the cycle continues:
-
One employee receives an inflated title.
-
Others notice and request the same.
-
Managers grant those requests to avoid conflict.
-
Titles become untethered from responsibilities.
-
Pay, structure, and credibility start to erode.
This cycle is especially common during reorganizations and acquisitions, when titles are often reassigned without a thoughtful process.
Common Examples of Job Title Misalignment
Engineer
Often assigned to roles without requiring engineering credentials or a degree.
Better fit: Technician
Analyst
Used for positions that involve routine tasks, not actual analysis.
Better fit: Coordinator, Clerk, Assistant
Manager
Given to individual contributors who manage no people, processes, or projects.
Better fit: Advisor, Developer, Strategist
Director
Used when “manager” or “senior manager” no longer sounds significant enough.
Better fit: Principal, Senior Staff, or more specific titles like “Program Director”
Why This Should Matter to Your Company
It’s tempting to dismiss titles as cosmetic. But they’re foundational to how we structure pay, performance expectations, and employee growth.
Many companies use dual titles—one public-facing and one for internal accuracy. But this can cause confusion for employees and leaders, especially when it comes to transparency around pay.
Ask yourself:
-
When was the last time we audited our job titles?
-
Do our org charts reflect real responsibilities?
-
Do managers understand how job titles impact compensation and employee perception?
If the answer to any of those is “no,” title fraud might already be quietly undermining your talent strategy.
How to Address Job Title Fraud
There’s no magic fix—but there is a clear path forward.
1. Acknowledge the Problem
Start by owning the issue. Transparency builds trust, especially when you show a willingness to reset and improve.
2. Implement Governance
Establish a process for reviewing titles—especially during promotions or reorganizations. Partner with HR to ensure decisions align with compensation frameworks and role expectations.
3. Realign Job Architecture
Review your job framework. Confirm that roles, titles, and pay bands are accurate and consistent across departments.
4. Communicate the Purpose of Titles
Educate employees and leaders on how titles are assigned, how they relate to compensation, and how they support growth and development.
Final Thoughts
Job title fraud may start with good intentions, but the consequences are real. It distorts pay equity, erodes trust, and makes it harder for leaders to reward and promote fairly.
Taking time to align job titles with actual responsibilities—and backing those decisions with data and structure—sends a clear message: This company values clarity, fairness, and accountability.
Ready to take the next step? Our team can help you fix title misalignments and build a more transparent, effective job framework. Let’s start the conversation.