Title inflation financials is a modern mirage
In the battle for financial talent, all tricks are currently being pulled out of the closet. Anything to bind the sought-after professional to the organization.
The most recent development: job title inflation.
Window dressing
In many job postings, the content and job title do not sufficiently match. Of course, as an employer, you want to stand out in this job market. But maybe we are overshooting the mark a bit? As I recently saw a vacancy for CFO for a company of 20 people….
Companies used to refer to themselves as “our accountant,” and with that everyone immediately knew who or what you meant by that. Rest assured, I am not in favor of that title and we should not go back to that!
In our present day, there seems to be a parallel with social media. There too, everything is preferably presented at its best and most beautiful. A fine example of window dressing; everything for the picture, everything for the outside world. But does that also reflect reality?
Expensive titles
It does seem fashionable that young financials have to carry expensive titles a few years after graduation. The terms junior and medior seem to be gradually becoming a thing of the past, even though they do give a nice indication of the experience the candidate is expected to bring.
And younger employees have the title of senior even after just a few years. How seriously should you take that? Aren’t they then being ruined for the future? Should their next title then be CFO?
Risk of mismatch
As a result, many candidates regularly respond to positions that do not adequately fit their background with overly high expectations about the associated job and financial package.
This trend will lead to further salary increases and a greater risk of mismatches in the industry. We cite for good reason that 50% of all candidates are not completely satisfied, if at all, the first year in a new position. Is it all doom and gloom then? Certainly not! Of course, there is a solution to this.
Make sure the job title matches the underlying duties as closely as possible. This requires nuance, but avoids candidate disappointment and also ensures specific job responses.
– Peter van Geel
Controller: FC or BC
Suppose you are looking for a Controller. Do you mean a financial controller or a business controller? Both positions have different assignments.
The financial controller oversees financial reporting, accounting and internal control processes. He processes financial data, while his reporting must comply with applicable regulations and standards. The financial controller may also be involved in budgeting, cost analysis and developing financial policy guidelines.
The business controller’s focus is on maximizing profitability and improving operational efficiency. He works with the MT by performing financial analysis and forecasting, controlling costs, preparing budgets and working out investment issues to support business decisions.
Emphasis on assignment
It is important that you clearly articulate what the mission of the job is. What needs to be done, what tasks lie ahead? In doing so, you clearly state the profile you are looking for.
Besides the job title, a salary indication in the job posting, a range if necessary, also gives the candidate something to hold on to. And last but not least; It is also important to match the job to the existing job and salary house in the companies.
More than a mirage
Choosing a good job title is a comprehensive process, which we would like to discuss with you. The most important goal is to prevent a job title from being nothing more than a mirage; you think you see recognition but the reality is different!
And then that 50% of disappointing working relationships in the 1st year still comes around the corner and that’s exactly what we want to avoid!
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