Nonprofit Resources

Job Titles that Work

Are job titles in your organization standardized and clear? Do you find yourself adding qualifiers to certain job titles to explain what someone does? How much thought went into the titles for your executive or leadership team?

Through our work at CapinCrouse performing compensation studies for nonprofit organizations, we have observed common job title practices that can have an adverse effect on staff, hiring outcomes, donor perception, and internal operations.

Considerations for Executive Job Titles

One of the most common issues we see is organizations blending multiple job title structures within the executive or leadership team. A clear and consistent framework helps internal and external stakeholders understand the areas of responsibility and reporting structures within the organization.

As a general guide:

• If your organization has a CEO, use C-suite titles for the executive leadership team (e.g., CFO, COO).
• If your organization has a President, use Vice President titles (e.g., VP of Operations, VP of Marketing).
• If your organization has an Executive Director, use Director titles (e.g., Director of Operations, Director of Programs).

The size of your organization is another crucial factor. If your organization has five staff members, it’s not reasonable for all of them to hold C-level or Vice President job titles. Even in a startup or small nonprofit, there will be different levels of responsibility and authority.

The IRS defines an executive as an individual with significant influence over the direction or finances of an organization, or both. These are the individuals who would be considered part of the executive or leadership team.

Considerations for Employee Job Titles

Consistency in job titles for non-leadership employees is also important, but it may not be as straightforward. When determining job titles, consider:

• Total number of staff
• Number of departments
• Reporting structure (the number of levels between the top executive and the most junior employee)
• Comparable titles at similar organizations

If you use or plan to create a pay grade structure, standardized job titles can provide essential clarity to employees and you as the employer, as well as a straightforward approach to hiring.

Evaluate the various roles and responsibilities within your organization. Two employees may have the title of Communications Coordinator, but if one has significantly more experience and responsibility, their compensation and title should reflect that.

Likewise, if 30 of your organization’s 50 employees have the title of Director, it is unlikely that their duties and responsibilities are truly equivalent. For example, a Human Resources Director may manage a team and oversee multiple functions, while a First Impressions Director handles front desk duties without supervisory responsibilities. Applying titles solely based on tenure or seniority rather than actual authority and responsibility is not beneficial for the organization or the individual. If an employee leaves the organization and applies for other positions, a title on their resume that either over- or undersells their responsibilities could hinder their future job prospects.

Four Steps to Evaluate Job Titles

While each organization is unique, these four general steps can help ensure that you are using effective job titles:

1. Map your hierarchy. Identify the number of levels between your top executive and the most junior staff member.
2. Outline the categories of responsibilities in your organization in broad terms (independent of the people currently in those positions):
   • Top executive (CEO, President, or Executive Director): Leads the organization; reports to the board
   • Executive (C-suite, Vice President, or Director): Oversees departments; reports to the top executive
   • Director (for organizations with C-suite or Vice President executives): Leads employees in one or more departments; contributes to strategy; reports to an executive
   • Manager: Supervises staff; handles complex tasks; reports to a director or executive
   • Specialist: Performs technical work under the supervision of a manager or director
   • Coordinator/Admin: Performs administrative or general support under the supervision of a manager or director
3. Assess whether your existing job titles align with these broad categories of responsibility or if you should make adjustments.
4. Review each employee’s job title to ensure it reflects their responsibilities, experience, and tenure.

Why Consistent Job Titles Matter

Job titles influence both internal clarity and external perception, as well as future opportunities for your team. By adopting a thoughtful, structured approach to title alignment, your organization can promote transparency and support fair compensation practices. Whether you’re refining existing roles or building a framework from scratch, consistency in job titles is a strategic investment in your people and your mission.

If you’d like help evaluating your job title structures, would like to learn more about our nonprofit compensation studies, or have any questions, please do not hesitate to contact us. We are here to help.

 

Authors: Stan Reiff, Partner and Professional Practice Leader – Consulting, and Kelsey Helmick, Executive Compensation Program Consultant

Sign up for e-news and alerts