What to consider before offering a job title as compensation

Titles are frequently seen as cheap alternatives to real compensation. Every HR executive knows that many a challenge can be prevented with the proper timely endowment of a fancier title. The reality, of course, is that awarding a new job title as a form of compensation in lieu of cash can create new and different problems: a promotional increase is demanded; the wrong messages are sent; discrimination claims result; internal equity is disrupted; pay compression occurs; appetites are whetted, etc. Sometimes giving a troublesome worker a fancier jumped-up title satisfies a critical need of theirs and produces a faithful and…

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