You hired someone as a "Director" early on, when they're really performing as a Manager.
And the reason it happens seems understandable in the moment.
I see it all the time.
You're a small business, and cash is constrained. So people ask for something else that is valuable to them which you can provide.
-> Equity, more leave, or.... a more senior title.
It's a way of getting and keeping the talent you need at a stage where you can't afford to just 'pay more'.
But it causes a structural issue the likes of which you always end up having to deal with later. Especially when you go from having one of that 'Director' role, to two of them, and suddenly they're not up to par.
Now you're stuck with two options:
- Keep the inflated title despite misaligned expectations (and watch your structure crumble)
- Reset the title to match reality (and have a brutal conversation about lowering the level and changing job title)
(if you're blessed with time, maybe you can give them a grace period to 'become' their title)
This can happen with promotions too.
When companies scale, there's immense pressure to promote based on tenure rather than capability.
"I've been here since day one, where's my VP title?"
But title inflation leads to:
- Compensation chaos when benchmarking against market rates
- Confusion about decision-making authority
- Frustrated employees who can't see clear progression paths
The solution?
Build structure early.
Your job architecture should clearly distinguish what a Manager, Director, or VP is responsible for based on things like:
- Span of control,
- Decision-making authority,
- Strategic vs operational impact.
Otherwise, titles quickly lose meaning.
The result: pay equity issues, confused employees, and overall brand damage.
Have you ever had to reset someone's job title — and how did you handle it?