57% of employers use senior job titles to retain talent, reveals survey: Do employees value designations over pay?

Did you know that 57% of employers use senior job titles just to attract or retain talent? But do employees in India value these designations when they do not come with higher pay?

According to Indeed’s latest quarterly hiring tracker, nearly six in 10 professionals say their job title does not reflect their compensation, pointing to a disconnect between professional recognition and financial rewards.

The survey was conducted by Valuvox on behalf of Indeed in May and June 2026. It covered 1,211 employers and 2,533 employees across India. The respondents represented different industries, organisation sizes, age groups, career stages, and locations, including Tier 1, Tier 2, and Tier 3 cities.

The study examined perceptions around the relationship between job titles and compensation, changing expectations around career progression, and the use of job titles to attract and retain talent.

Does a higher job title always mean higher pay?

Not necessarily.

Nearly one in three professionals who received a title change over the past two years said it came with either no salary increase or an increment of less than 5%.

At the same time, 52% of professionals said they would choose a higher salary over a better designation when considering a new opportunity.

The survey also found that nearly 80% of professionals believe title inflation has become common across industries, with many observing colleagues holding increasingly senior designations that are not always matched by comparable compensation.

Are employers using senior titles just to retain talent?

Yes.

57% of employers said their organisation uses senior-sounding or enhanced job titles to some or a great extent to attract or retain talent.

According to an Indeed study, designations are increasingly being used as a strategic talent tool alongside compensation. Many organisations use enhanced titles to attract candidates, retain high-performing employees and recognise employee growth, particularly when salary budgets remain constrained.

Employers also cited evolving market expectations and changing organisational structures as factors driving the use of more senior titles.

Do professionals still value job titles?

While compensation remains important, professionals continue to see designations as relevant to their careers.

• Nearly 70% believe their designation plays an important role in shaping future career opportunities.
• Almost 73% believe a stronger title improves how potential employers perceive them.
• 57% say their designation has a significant impact on their overall job satisfaction.

The findings suggest that professionals continue to value job titles, but increasingly expect them to be supported by meaningful compensation and genuine career progression.

What does the survey say about career progression?

The findings show a difference in how employers and employees view promotions. Employers see titles as one of several ways to recognise talent, while employees continue to associate career progression most strongly with financial advancement.

This expectation gap is shaping how professionals evaluate opportunities, measure success, and define meaningful growth. A better designation still matters, but it is no longer enough on its own.

Says Sashi Kumar, Managing Director, Indeed India, “Titles remain meaningful because they signal opportunity and capability, but they are most effective when they reflect genuine career progression rather than becoming a substitute for it. Building that alignment will be increasingly important for organisations looking to attract and retain talent in a competitive market.”

Disclaimer: This is for informational purposes only. The views expressed above are not those of Mint.