By Alan Price, HR / employment law director of employment law consultancy Peninsula and director of the CIPD, the HR professional body

Job titles can hold a significant amount of power in the workplace. They often serve as status symbols within a professional environment, determining how an employee interacts and communicates with a fellow co-worker. Alternatively, to the individual, a job title holds a high intrinsic value, as it represents a sense of achievement, demonstrating that they have been recognised for their level of expertise and rewarded appropriately.

More often than not, a change in job title can serve as a form of low cost incentive, meaning more to the employee in the long-term, than a financial gain such as a pay rise or bonus. This is due in large part to the fact that perception is everything, and how their colleagues perceive and treat them has a direct effect on how they see themselves. Additionally, when an employee receives a job title that denotes a higher level of responsibility and importance, they feel a sense of pride and value that monetary incentives cannot buy.

In the long-term, advancing in the workplace will instil a greater ethic in the employee, as they will strive to achieve all the objectives and goals set for the role, working harder and being more productive to ensure they put their mark on the business. This can be achieved by the title itself, which brings with it a set of qualities that the employee believes they should emulate in order to fulfil what is expected of them. This is only good news for you, as the employer, as a more productive and happier workforce will increase the likelihood of your company growing and progressing in the future.

Some employers may believe that a title is just a title, but in reality the effects a change in job title has on the employee can be substantial. We have all heard the saying, ‘money can’t buy you happiness’, but can a change in job title? In terms of long-term workplace morale, it potentially can. Employers should take note of their employees’ contributions and ensure that they are assigned a role which reflects that. By doing so, you are not only facilitating the development of your own company, but also building long-term loyalty with your employees.