You might be able to use the Quirky update[/url] or the LEAD/LAG functions available on 2012.
However, I did this using an islands solution that might fit your problem.
WITH Groups AS(
SELECT EMP_ID,
Title,
DateValue,
TITLE_YEAR,
DATEADD(YYYY, - ROW_NUMBER() OVER (PARTITION BY EMP_ID, Title ORDER BY DateValue), DateValue) Grouper
FROM #mytable
), Added AS(
SELECT EMP_ID,
Title,
DateValue,
TITLE_YEAR,
ROW_NUMBER() OVER (PARTITION BY EMP_ID, Title, Grouper ORDER BY DateValue) Years
FROM Groups
)
UPDATE Added SET
TITLE_YEAR = Years
SELECT * FROM #mytable