Walk through the C-suite of any large organization, and you’ll likely see a few job titles that didn’t exist 10 or even five years ago: chief digital officer, chief talent officer, chief trust officer. The modern work landscape is evolving, and executive job titles are changing right along with it.
Through my work in global executive search, I have noticed this trend emerge as a response to three main factors:
New roles and responsibilities: Job titles are becoming more descriptive in order to accurately reflect new positions and functions. Companies are introducing roles in developing areas such as AI, digital media and data security. For example, Gartner estimates that 15% of large enterprises have a chief digital officer in 2019, up from 7% in 2014.
Shifting organizational needs: Companies are creating positions as a way to address pressing concerns that demand decisive action, such as supporting employees following sexual harassment allegations in the #MeToo era or meeting rigorous privacy standards as part of the General Data Protection Regulation (GDPR) in the EU.
In the wake of serious workplace accusations and a shakeup of its senior leadership, CBS now has a chief people officer and a chief business ethics and compliance officer. And this May, Airbnb appointed its first chief trust officer to focus on the online and offline safety of its billions of worldwide customers.
Competition for talent: Employers are vying for the attention of candidates with high-demand skills, particularly in media and tech. Crafting creative, modern job titles help them appeal to the best candidates and bring them on board in a competitive market.
For its new Office of Digital Innovation, the California state government is proposing job titles that seem to be more Silicon Valley than civil service, including head of product and head of design and user experience.
If managed thoughtfully, this shift toward creating hyper-specific job titles can lead to positive outcomes. Companies will be able to attract the right type of candidates for a particular position and give them ownership over building a vision from scratch.
Organizations can also use this as an opportunity to reconfigure their internal structure, clarifying reporting relationships and who is responsible for which tasks. For instance, the chief digital officer may work in tandem with – but not report to – the chief marketing officer and chief information officer to lead digital campaigns.
But companies must also be aware of the potential pitfalls. Ambiguity and ambivalence can cause disorder and damage workplace culture. If your company is considering creating a new job title, avoid common stumbling blocks by following these best practices.
Define clear relationships and responsibilities.
Understand how the new role will fit into the existing structure of your organization. What will the executive be in charge of? What will they actually do, day to day? Who will they report to, and who will report to them? For example, if you are hiring a chief cybersecurity officer, how will that person work with your current CIO? Think through the reporting relationships, and be careful not to create an imbalance in your corporate culture.
Get buy-in from senior leadership.
Address any concerns from the C-suite before moving forward in the hiring process. Clarify the scope of the new role and sell senior leadership on its value. What will this person do that isn’t happening right now? How will they offer your company a competitive advantage? What new opportunities will they allow you to pursue?
Build trust and transparency.
Integrate the new executive into the leadership team from the beginning. If you’re hiring your company’s first chief happiness officer or chief data protection officer, for example, make it clear that they will be running a department under the same parameters as other C-suite leaders. Be transparent about factors like operating and hiring budgets in order to foster team trust and unity.
Manage this process strategically, and your company will be well-equipped to attract top talent and adapt to ongoing challenges.
