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I think there are a few ways to look at titles. Titles are important when viewed by outside companies and can, from my experience, either help or hurt your prospects at growing into larger roles. For example, a director with 10 YOE would likely find it easier to apply and be considered for a VP role at another company, whereas someone without the director title (say Sr. Manager with same YOE) would likely be constrained to jobs at a director level title…This can play out at every level so title to me (equal to compensation) is important.
Then of course there is a thing called ‘title creep’ where (often times small companies) throw out and assign arbitrarily high titles to make up for potentially smaller compensation packages (I’m looking at the VPs, SVPs, etc with less then 10-15 YOE). In those cases those individuals will likely face the exact opposite problem then I outlined above. They will have a hard time potentially finding other roles because their current title is so inflated and out of alignment with standard practices.
My two cents
I don't think anybody cares about title over pay unless they are an avid LinkedIn premium humble brag simp.
I don't care either, but recruiters do. So here I am doing what I've been doing for the past 10 years but my resume only says 3 years of an official title.
Recruiter: "well you don't have enough YOE."
"ok then how many people have you met who knows these tech stacks inside out as per your client request and is full stack?"
"... None so far, it's pretty new. We've gone through 90 candidates around the country."
"So do I not deserve the pay level I'm asking for?"
"Yes but the client won't think so because of your YOE."
🤦♀️
I don't care if the title is "janitor" as long as the pay is right. Not that there's anything wrong with being a janitor.
I agree with the sentiment that title shouldn’t matter if comp and responsibility is where you want it to be, however, if you ever want to leave the company the title becomes significant for where they can place you and the pay bands. It’s silly but it matters. Coming from someone who experienced it