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Disparities between job titles and job tasks could pose challenges for companies and employees. For instance, if two employees do the same work but hold different titles, it can create organizational confusion as to who is responsible for what tasks.
“More importantly,” said Jim Hudner, managing director in the Boston office of Pearl Meyer, a compensation consulting firm based in New York, “if the different titles result in differences in how each position is paid, this could create pay equity issues for the employer.”
In the modern, global workplace, where job titles have grown to become more creative and, in some instances, ambiguous, are they still the most accurate way to indicate what jobs employees perform?
Focusing on the skills needed for a position, rather than just relying on the job title, is a shift that benefits both employers and job seekers. Categorizing jobs by skills and proficiencies will democratize the job market so people who lack certain titles will gain necessary experience to move up their career ladders.
With titles that lack standardization, tension between workers could arise. If two people have the same title but perform dramatically different tasks or workloads, workers might feel they should be paid the same.