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Buying vs. renting...?
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Titles absolutely do matter - it's how you give yourself a leg up in the next job you apply for. It's the very reason we rallied against the ridiculous titles like "social media maven" and "marketing ninja" that companies tried to start handing out. Titles are currency for negotiation. In my experience, your best bet is to put together your current job description, not the one you were hired as, and compile your projects, achievements, and responsibilities. This is what you'll present to your manager so they can see what your job realistically entails. Let them know you'd like a title that better reflects your actual responsibility.
Do it. Your instinct is correct. And instead of saying you're doing the job of those above you, I would lead with a question of your manager and your skip: "What do I need to do to progress to the next level?"
I’ve been through this, twice. The first time my boss at the time was aware and approached me first to say that she was working on getting a new position created to reflect what I actually do. It took more than a year to be finalized, but a lot of that had to do with some crummy company politics at the time and I was collateral damage.
The second time was at a different company. I had raised the issue with my boss, who did nothing, and when he left and my new boss was hired I brought it up again. She had me look at the company’s set job descriptions and find the ones that I felt most closely reflected what I actually did. There were two - one would have been a much bigger jump in job grade and for multiple reasons I knew it wouldn’t be approved, so I made a case for the other one. It took maybe a month to be approved, but with that one it was also easier because in doing this I found out that I had been supervising people at grades that my previous grade really should never have been overseeing!
Basically my advice is to start with looking into your company’s job descriptions/classifications and any related policies, and then talk with your manager.