Companies give people fake 'manager' titles, and save billions

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Researchers found that firms save a total of $4 billion in overtime payments every year by simply inflating workers' titles to avoid paying them in full. For employees, these inflated titles result in 13% less pay than they might otherwise get.

February 2, 2023, 1:57 PMWould you rather be a front-desk clerk or "Director of First Impressions"? A barber or a "Grooming Manager"?

reveals is that firms save a total of $4 billion in overtime payments a year simply by getting creative with titles. For employees, however, these inflated titles result in 13% less pay than they might otherwise get. Gurun said he hit on the idea for the study, published by the National Bureau for Economic Research, while at the airport and he overheard two workers talking about a delayed flight.

 

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