The Pearl Meyer & Partners 2014 Report on Job Titling ... · Two hundred forty eight organizations...
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The Pearl Meyer & Partners 2014 Report on Job Titling Practices
Transcript of The Pearl Meyer & Partners 2014 Report on Job Titling ... · Two hundred forty eight organizations...
The Pearl Meyer & Partners 2014 Report on Job Titling Practices
© 2014 Pearl Meyer & Partners, LLC 1
Employee / Job Titling Survey
Table of Contents Executive Summary ........................................................................................................................... 2 Participant Demographics .................................................................................................................. 3 Job Titling Philosophy ...................................................................................................................... 5 Variability in Job Titling Practices ..................................................................................................... 7 Uses / Drivers of Job Titles ................................................................................................................ 9 Communication of Promotional Job Title Changes ........................................................................... 11 Business Card Practices ..................................................................................................................... 13 Titling Associated with Mergers and Acquisitions ............................................................................ 15 Predominant Titles Direct Reports to the CEO ................................................................................................ 17 Direct Reports to Direct Reports of the CEO ................................................................... 21 3rd Level below CEO ....................................................................................................... 25 4th Level below CEO ....................................................................................................... 29 5th Level below CEO ....................................................................................................... 33 1st Line Management ....................................................................................................... 37 Highest Level Technical Employees ................................................................................ 41 Titling Practices ................................................................................................................................ 43 Criteria for Specific Title Usage ......................................................................................................... 45 Participant Listing……. ..................................................................................................................... 49 About Pearl Meyer & Partners ........................................................................................................... 56
© 2014 Pearl Meyer & Partners, LLC 2
Employee / Job Titling Survey
Executive Summary
Two hundred forty eight organizations provided information for The Pearl Meyer & Partners 2014 Report on Job Titling Practices. A few of the highlights are summarized below.
Job Titling Philosophy
Nearly three-quarters of organizations assign working job titles and these assigned job titles or something similar is also on the employee's business card. Nearly a quarter of employees are provided some latitude in determining their external or working title.
Almost 40% of organizations found job titles to be important and expect these to convey authority and responsibility.
Communication
Over 86% of organizations issue an organization-wide announcement of executive promotions. In general, the higher an employee is in the organizational hierarchy, the broader the communication of promotions.
For individual contributors, more than 67% of promotions are communicated by the manager to the employee with no further communication within the organization.
Title Prevalence
The most prevalent titles reporting to the CEO are Executive Vice President (23%), Senior Vice President (22%), and President (group / business unit / function) (18%).
For direct reports to direct reports of the CEO, the most prevalent title is Vice President (39%), followed by Senior Vice President (19%), followed by Director (6%).
Titling Practices
Many organizations report using traditional people management titles for employees in individual contributor roles including Manager (86%), Director (59%), and Vice President (32%).
Our thanks to the many organizations who contributed information to this report.
Employee / Job Titling Survey
Please provide your full company name.
Company:
Please provide the contact person for this survey.
Name:
Definitions:
"Systems Title": The official job title as designated by the employer and typically captured in the organization's Human ResourceInformation System (HRIS).
"Working Title"*: The operational or effective job title which may be
a) the same as the "Systems Title",b) a different, typically more practical title designated by the employer, orc) a different title self-determined by the employee.
*This title would typically be displayed on the employee's business card (if they have a card) or email signature.
1. Please describe which of the following statements best describes your organization's management of job titles.
Our firm has "Systems Titles" only. [Skip to question 3]
Our firm has "Working Titles" only (we do not capture or maintain job titles in our HRIS system). Our firm has "Working Titles" only (we maintain the employee's working title as their HRIS "System Title"). Our firm has both "Systems Titles" and "Working Titles" and only the "Systems Title" is maintained in our Human
Resource Information System. Our firm has both "Systems Titles" and "Working Titles" and each is maintained in our Human Resource Information
System. Our firm avoids the use of titles and most everyone is an "Associate" (or similar egalitarian phrase). [Skip to question 3]
Other Specify [Skip to question 3]
1a. Please select which of the following statements best describe your organization's practices regarding "Working Titles".
Our firm assigns job titles and these titles are the titles employees are permitted to display on their business cards (orother external identification).
Our firm assigns job titles and employees are expected to have something similarly representative (but not necessarilyidentical) on their business cards.
Employees are allowed to establish their own working title within limits. Employees are essentially given wide latitude in establishing their working title. Employees can claim most any job title they want.
Other Specify
1b. Please identify which of the following statements best identify your organization's practices regarding "Working Titles".(Check all that apply)
Job titles are important and are designed to accurately convey the employee's level of authority and area of responsibility. Job titles are important as they identify the hierarchy of authority within the firm. Job titles are only important for executives and those in client-facing roles. Job titles are only important for executives. Job titles are only important for those in client facing roles. Job titles are valuable tools to reward employees in the absence of other available rewards. Job titles are important within our industry. Job titles are unimportant and inconsistent with our organizational culture.
2. Please indicate if your organization is global (employees in multiple countries) in nature?
We have employees in multiple countries (Global). [Skip to question 2a]
Our employees are located solely (or "almost" solely) within the United States (Domestic). [Skip to question 2b]
2a. Is your job titling practice (for "Working Titles") consistent across the organization or are countries / divisions / groups andfunctions permitted to have differing practices?
Our job titling practice across the firm is globally consistent. Our job titling practice is consistent within countries but varies across regions and countries. Our job titling practice is mostly consistent with some few cases of flexibility. Our job titling practice allows flexibility for regions and countries / divisions / groups / functions to make job titling
decisions. Other Specify
2b. Is your job titling practice (for "Working Titles") consistent across the organization or are divisions / groups and functionspermitted to have differing practices?
Our job titling practice across the firm is consistent. Our job titling practice is mostly consistent with some few cases of flexibility. Our job titling practice allows flexibility for divisions / groups / functions to make job titling decisions.
Other Specify
3. Uses / Drivers of Job Titles (Check all that apply)
Accurately convey the organizational hierarchy Accurately reflect the employee's role Attract prospective employees Reward current employees Retain current employees Recognize / reward employees when funds are limited Make employees feel better Support the salary structure grading system Determine eligibility for certain compensation programs Determine eligibility for certain benefit programs Determine eligibility for certain perquisites Organizational politics
Promotion Reward Achievement
Other Specify
4. For each category of employee, identify how a promotion with a change in an employee's job title is communicated:
Employee Category Method of Communication If you have chosen “Other”Please Specify
Executive
Director
Manager
Individual Contributor
5. Does your organization provide business cards to any employees?
Yes [Skip to question 5a]
No [Skip to question 6]
5a. Please identify the employees in your organization eligible to receive organization provided business cards: (Check all thatapply)
Executives Other Management Professional Non-Sales Employees Sales Employees Administrative Staff Direct Labor
Other Specify
5b. Who approves job title use on employee business cards: (Check all that apply)
The employee's manager Human Resources The department manager The CEO A direct report to the CEO A Vice President There is no formal approval system
Other Specify
6. Has your organization been acquired by / merged with any other organization within the preceding 24 months?
Yes No [Skip to question 7]
6a. For organizations acquired in the last 24 months, what has been your most prevalent practice regarding titles of employeesin the acquired organization?
Acquired employees are generally allowed to retain their current titles. Acquired employees are generally allowed to retain their current titles for a short period (e.g. 12 months) but then they
are moved onto the parent organization framework. Acquired employees are quickly assigned new titles.
Other Specify
7. Please identify the most prevalent and 2nd most prevalent "working" job title at each of the following levels. Please excludethe following single incumbent job titles unless they carry an additional title (e.g. CFO/Sr VP).
Chief Operating Officer (COO) General Counsel - Chief Legal Officer (CLO)
Chief Financial Officer (CFO) Chief Technical Officer (CTO)
Chief Marketing Officer (CMO) Chief Information Officer (CIO)
Most Prevalent If you have chosen “Other”Please Specify
Direct Reports to the CEO
Direct Reports to Direct Reports of theCEO (2nd level below CEO)
3rd level below CEO
4th level below CEO
5th level below CEO
2nd Most Prevalent If you have chosen “Other”Please Specify
Direct Reports to the CEO
Direct Reports to Direct Reports of theCEO (2nd level below CEO)
3rd level below CEO
4th level below CEO
5th level below CEO
8. Please identify the two most prevalent job titles for 1st Line Management (this is the lowest management level within yourorganization responsible for hire / fire) within your organization.
Job Titles If you have chosen “Other”Please Specify
Most Prevalent
Next Most Prevalent
9. For those organizations with technical employees: Please identify the most prevalent job title for the most Senior TechnicalIndividual Contributors within your organization.
Senior Fellow Fellow Senior Director Director Senior Principal Principal Senior Technologist Senior Member of Technical Staff Distinguished Member of Technical Staff Member of Technical Staff Senior Consultant Consultant Engineer and / or Scientist 6 (VI) Engineer and / or Scientist 5 (V) Engineer and / or Scientist 4 (IV)
Other Specify
Not applicable
10. Does your firm permit any of the following titles for employees in individual contributor roles? (Check all that apply)
Vice President Director Manager
11. If an employee in your firm accepts a position at a level lower than their present title would suggest, is the employee'ssystem title changed to reflect their new level with your organization?
Yes No Not Applicable Discretionary
12. If an employee in your firm accepts a position at a level lower than their present title would suggest, is the employee'sworking title changed to reflect their new level within your organization?
Yes No Not Applicable Discretionary
Criteria for Title Use
13. Do you have specific criteria that must be met before the following titles may be used (check all titles that have specificcriteria):
President [Skip to question 13a] Executive Vice President [Skip to question 13b] Senior Vice President [Skip to question 13c] General Manager [Skip to question 13d] Senior Director [Skip to question 13e] Not Applicable [Skip to question End]
13a. Please identify the specific criteria that must be met before an employee may use the title of President. (Check all thatapply)
Senior most Executive of a Subsidiary / Group / Division Responsible for P&L as well as R&D, Manufacturing, Sales, Purchasing Responsible for P&L only Responsible for Expense Management only Runs an organization of an established, minimum size Reports to the CEO
Other Specify
13b. Please identify the specific criteria that must be met before an employee may use the title of Executive Vice President.(Check all that apply)
Senior most Executive of a Subsidiary / Group / Division Responsible for P&L as well as R&D, Manufacturing, Sales, Purchasing Responsible for P&L only Responsible for Expense Management only Runs an organization of an established, minimum size Reports to the CEO
Other Specify
13c. Please identify the specific criteria that must be met before an employee may use the title of Senior Vice President. (Checkall that apply)
Senior most Executive of a Subsidiary / Group / Division Responsible for P&L as well as R&D, Manufacturing, Sales, Purchasing Responsible for P&L only Responsible for Expense Management only Runs an organization of an established, minimum size Reports to the CEO
Other Specify
13d. Please identify the specific criteria that must be met before an employee may use the title of General Manager. (Check allthat apply)
Senior most Executive of a Subsidiary / Group / Division Responsible for P&L as well as R&D, Manufacturing, Sales, Purchasing Responsible for P&L only Responsible for Expense Management only Runs an organization of an established, minimum size Reports to the CEO
Other Specify
13e. Please identify the specific criteria that must be met before an employee may use the title of Senior Director. (Check all thatapply)
Senior most Executive of a Subsidiary / Group / Division Responsible for P&L as well as R&D, Manufacturing, Sales, Purchasing Responsible for P&L only
Responsible for Expense Management only Runs an organization of an established, minimum size Reports to the CEO
Other Specify
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© 2014 Pearl Meyer & Partners, LLC 56
Employee / Job Titling Survey
About Pearl Meyer & Partners
For 25 years, Pearl Meyer & Partners (www.pearlmeyer.com) has been a trusted independent advisor to Boards and their senior management in compensation governance, strategy and program design. Multinational companies ranging from the Fortune 500 to not-for-profits and emerging high-growth companies rely on Pearl Meyer & Partners to develop global programs that align rewards with long-term business goals to create long-term value for all stakeholders: shareholders, executives and employees. The firm maintains offices in New York, Atlanta, Boston, Charlotte, Chicago, Houston, Los Angeles, San Francisco and San Jose, as well as an office in London.
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