Comment by simonw

One of the most important roles of job titles, which people who haven't been involved in salary decisions may not fully understand, relates to how companies compare salaries.

There are reports that a company can buy which provide detailed analysis of how other companies in their industry (and geographical area) are paying their staff.

A big part of the process of deciding how much of a raise someone should get then comes down to that data: how does their current salary compare to the median pay for similar levels at other nearby companies?

Obviously the actual titles used within companies vary a lot, but the report gathering companies attempt to normalize those.

Even without these cross-company reports, the title you have within a company has a very strong influence on how salary is calculated in that it allows your salary to be compared with your peers within your own company.