Free Ebook.

Enter your email address:

Delivered by FeedBurner

« Employee Stock Purchase Plans: Great Investments | Main | The Key to Affordable College: Match Costs with Benefits »

December 17, 2008


Feed You can follow this conversation by subscribing to the comment feed for this post.

I would enjoy a pay bump more, but still being relatively new, I'd take a title. If he company continues not to give raises then can move on and perhaps the title can help me get a bigger bump up on my next job.

I prefer the salary increase. Having said that, when I am working on projects that involve overseas companies, I find that a new title helps. Especially in asian corporate culture, it takes a week to recieve an answer to simple engineering inquiries when they come from a "process engineer", but make that title "technology supervisor" and days are cut off. My compnay has found that "manager" level titles demand next day responses and "v.p." will get same day responses in most cases.

Of course rather than hand out a miriad of titles to every engineer, our compnay has created a small number of business cards which has our title set to technology supervisor or manager depending on years of engineering experience for instances with dealing with our asian partners. It helps that our department will print business cards on an as needed basis rather than order them from a provider.

I think changing a title (level up) without a salary increase is akin to buying premium fuel when it's really regular gas (the name of the gas has changed, but when it comes down to it you're still getting regular gas).

One advantage to getting a higher title is that it can help you get another job at a higher grade with another company. Switching jobs is often the best way to increase your salary.

If someone was willing to make me a Vice President without getting a pay raise, I actually think I would do it. The amount of money I could make by switching jobs would be a lot more than the raise I would get from my company.

This very thing happened to me several years ago. At our company a promotion generally came with a 2% increase in addition to the merit increase.

I sat down with my boss who said "I have some good news and some bad news". Got a promotion, but not the 2%. My feeling is that promotions are nice but they don't pay the bills.

A more senior title usually implies more senior accountability. Personally, I doubt I would accept more accountability without more compensation.

In the banking/investment industry the formula used to calculate your bonus (or even the bonus structure itself) changes when you move up a level to VP. Therefore your salary may not increase, but your bonus could increase from 10% to 30% of your income. Stock options and employee share ownership incentives may also change at that level.

When I was starting my career in banking (many moons ago!) I worked in a branch and we had an employee who's job was to deal with irate clients and client concerns. Pay scale wise, he was paid equivalent to a head teller, but his title was manager so clients would believe they were dealing with someone who had authourity.

I'd prefer to be the highest paid sh!t shoveler in the world than the lowest paid CEO. :)

You can call me a slave as long as you pay me well. Screw the title, give me the money.

Depends on the industry. In mine titles of senior counsel or partner get you more credibility instantly because they are seen as some stamp of approval. Helps in generating new business. That said, a title isn't going to pay the bills. But I wouldn't write off entirely the benefit of a no pay-increase but change in title promotion. Depending on the field, it can be a benefit (albeit typically marginally).

Think it depends on the persons ego. I could easily see how a bigger title means more to some people, they can brag about it. For me, I could care less what my title is if I had the salary I desired. I work at a small web start-up, and relatively can have any title I desire. For me it means nothing, just a title. Think most people would rather have the money.

I would rather get a raise, than a title. I agree, in banking there are alot of VPs, but sometimes the title is a "marketing title" vs. a "corporate". If it is a corporate title you are legally able to sign certain docs on behalf of the bank. Marketing titles help customers feel they are talking to someone with authority.

Assistant to the regional manager.

In the IT industry, especially consulting, titles actually don't mean that much. I've seen people promoted to "manager", even though they don't have anyone reporting directly to them. The manager title is provided just because it's the next step on the ladder. Technology in general doesn't try too hard to equate titles with skillsets, knowledge, or experience. The title only fits with how much money you make. And in many companies there is a lack of titles for those who don't pursue a career path in management. It's as if HR decided that everyone, even an experienced engineer, has to be a "manager" at some point just to move up.

My knee jerk response is a fancy title won't pay the mortgage. We could assume in this economy that people are more likely to welcome an increase in pay than a fancy title. But depending on where someone is on their career path, they might be able to create future opportunities for more wealth if they leverage an impressive title into a higher paying position at another company.

I work at a 100% commission-based company with about 1000 employees, and have been offered various management positions throughout the last five years, but have declined them all. Why? Because unless they make me VP of Sales for the entire company, I'll earn less (managers are salaried). Plus, I love the camaraderie of us peons. I've worked management positions at other companies before and hate the fact that big brother's watch glass is always on I just laugh when pompous middle managers have an attitude, and tell them, much to their dismay, that I've been offered their job (or better) over 5 times!

Take the pay increase and just start calling yourself some type of manager name and change it on your email signature.

in short

money talks, titles require a reader.

I was a General Manager / Managing Director for a British company with 600 people. I took a lateral move to become a CEO for a small private manufacturing company, about 1100 people when I joined.

Now there is a huge market downturn and I am laying off the operation to scale down to 300 people (we are having a 70% drop in sales- it's really ugly).

I figure I should be able to get a VP or CEO / COO title in the future and this is great experience.

The company is in SE Asia and I'm 35 years old. I'm the same guy who wrote several posts on how to keep growing your career, the Engineer.



I'm pretty sure the lowest paid CEO makes more than the highest paid sh!t shoveler in the world :-)


I'm not sure about that... a lot of CEO's are taking $1 salaries now that they've gotten taxpayer money!


...and then is the folks like me. I took a step back in title and "prestige", only to being offered a 14% salary increase to do it. I'm past the ego-building stage in life. I'm more about landing where my skills and gifts have the greatest impact in the organization. I look forward to going to work, produce results, and see the $$ come payday. That's okay with me.

Really? I'm surprised that it's all about the money. If I get a payrise, nobody would know that I am valued, whereas with a promotion it's clear that I am.

I'm sure research has suggested that most people are not primarily motivated by money - people who are good at commission work are often (but not always) an exception to the rule.

The comments to this entry are closed.

Start a Blog


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.