Emerging trend of Job Title Inflation in Vietnam sees limited success in Attracting and Retaining Talent
More employers are inflating job titles in Vietnam in 2023, with a 23% increase in positions with titles including “Managers” and “Directors” for jobs intended for professionals with 2 years of experience. Usually done to attract and retain talent, these efforts however see limited success and may create problems for employers and employees alike. These are among the observations and insights from Robert Walters Vietnam on the trend of job title inflation.
Job title inflation refers to a practice by companies to offer inflated or exaggerated job titles that may not accurately reflect the responsibilities, seniority, or even salary of the position.
Using inflated job titles to attract and retain talent
Job titles and promotions are valued by professionals. Based on LinkedIn polls conducted by Robert Walters Vietnam in January 2024, 91% of professionals agree that the job title is important or very important when applying for a role. Among young professionals, 33% also expect to be promoted within 12 months of working in a company.
While some companies have tried inflating job titles, the success rate varied. Among companies, 63% of hiring managers surveyed shared that they have or are considering inflating a job title to attract or retain professionals to a role within their organisations and 45% shared that this move has worked to its desired effect.
An inflated job title may also lead to problems where fellow professionals may not see it as a major indicator of seniority, or the level of responsibility and experience associated with a position. Being able to manage a team (53%) and the importance of the job (22%) were perceived as indicators of seniority, while 25% believe that a C-Suite/Head-of title reflected seniority.
“Job title inflation can be a double-edged sword. On one hand, it serves as an effective tool to attract talent by making employees feel more important and valued within an organization. However, it is essential that these titles accurately reflect the actual job scope. Misalignment between job titles and job responsibilities can create confusion among employees about their roles and the roles of others, potentially leading to neglected tasks.” said Phuc Pham, Country Manager of Robert Walters Vietnam. “Moreover, inflated titles can lead to talent mismatches and foster resentment among the workforces. Therefore, clearly defined roles and responsibilities, paired with precise job titles, are crucial for maintaining fairness and clarity in the workplace.”
Robert Walters Vietnam advises hiring managers to avoid inflating job titles as it may cause inefficiencies and inequality within the organisation, and result in employees leaving.
[1] Based on LinkedIn Talent Insights
