Employers are inflating job titles to quench Gen Z's thirst for promotion

Gen Z expects to start a new job with the expectation that they'll quickly climb the corporate ladder. But what happens when the roles they're advancing into aren't necessarily real? 

Over half of Gen Z expected to be promoted every 12-18 months, according to a poll from recruiting company Robert Walters. To keep Gen Z placated, some employers are turning to "title inflation," the process of giving employees more senior sounding job titles without the experience, skills or salaries to match. In the last year, there's been a nearly 50% increase in "senior-sounding" job titles in the U.S., according to the software company Data People. 

"The younger workforce is beginning to take their second or third or fourth steps in their career, and they're very entrepreneurial about how they approach work by wanting to put their own stamp on things," says Adam Woolley, associate director at Robert Walters. "They're looking for that inflated job title and that fast track to progression."

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While the trend of adding "chief," "lead" or "manager" to less skilled roles may be new to larger organizations with defined promotion policies, according to Woolley, it's standard practice in smaller businesses and startups. In those scenarios, the idea is to both upskill on the job, while also giving their staff job titles that are recognizable and transferable in the marketplace. However, without implementing it properly, this strategy can backfire. 

Data People found that job listings that use the title of "senior" incorrectly can see a 39% decrease in applicants. On the other end of the recruiting spectrum, it can also create a significant skills gap for Gen Z employees, who are already known for their tendency to move jobs or companies more than other generations. As such, 72% of employers claim that Gen Z employees lack the critical soft skills they need to succeed in their new leadership titles. 

"Not all manager jobs are created equal," Woolley says. "And soft skills are so important for managerial or leadership positions, particularly for employers to understand the maturity and exposure of an applicant, rather than just the hard skills they've gained at however many roles they've had previously." 

The good news, however, is that the fix is relatively simple — ensuring that everyone is on the same page about what their titles really mean and how it could positively or negatively impact the employee should the new role be too big, too fast. 

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"The most important thing is to look beyond the job title and really dive into the job description," Woolley says. "If an employee takes that jump and they're not actually operating at the level needed, it could end up hamstringing them when it comes to next steps." 

But for many Gen Z workers, their persistence can pay off in the long-term: 3% of managers stated that what Gen Z lacks in experience they make up for perseverance, and 26% said this demographic benefitted from an entrepreneurial mindset. Almost two-thirds of employers polled by Robert Walters said they were  impressed with the level of autonomy this generation can handle.

"Gen Z's perseverance comes from the need to feel like they are making a difference and having a purpose in what they're doing day-to-day, more so than the generations who have come before them," Woolley says. "So it's important that employers keep creating that opportunity for them to feel purpose in what they're doing."