Outside of the context of avoiding overtime payments, job title inflation is definitely used to help attract and retain employees. A few decades ago, a director level position was a manager of managers, and usually one of the key decision makers at a firm. Nowadays, you have many people with "director" in their job title who are team leads or senior individual contributors. It's not even really a problem. In fact, it's great to have a nice title and makes people feel important. It's more about adjusting your expectations of what someone's job title is vs what they actually do day to day.