Certification Connection

Guest Post by Tom Lord

By Maurisa Westbury

According to the most recent statistics from the U.S. Department of Labor’s Bureau of Labor Statistics, the occupational outlook for human resources professionals appears quite promising. Overall projections indicate a growth rate for the job category of about 17% between the years 2006 and 2016. The bureau considers the predicted growth is faster than average when all occupations are taken into account. For anyone thinking of an HR career or staying in the field, that should be welcome news.

After all, job stability is not easy to come by in any career and the government’s statistics can serve as a respectable source of confirmation. From that standpoint, the decision to enter or stay in the HR industry seems to be a sound one. However, to grow within the field and explore pathways to upward mobility, questions about credentials and certifications come into play.

The Society for Human Resource Management (SHRM) offers two levels of certification, including the Professional in Human Resources (PHR) and the Senior Professional in Human Resources (SPHR). SHRM also offers the Global Professional in Human Resources for those with international responsibilities. The California Certification in Human Resources is for those who plan to work in the State and are unfamiliar with California’s labor and human resource laws.

Now let’s ask the real questions. Are certifications required to succeed in the business? Do they translate into higher earnings? Are they worth the investment of time and money? What are the facts?

In a press release dated June 22, 2008, the HR Certification Institute, a SHRM affiliate, announced the findings of a recent study called the Value of Certification Survey. The survey, which polled over 3,000 certified and non-certified HR professionals, revealed that one out of two hiring managers prefer HR certified professionals. The report also shows that 44% of the respondents feel HR certified professional create a positive impact on their company’s financial bottom line. In fact, every statistic in the survey showed the benefits of certification.

What it did not reveal, however, are statistics that show certified HR professional enjoy higher earnings than their non-certified colleagues do. The lack of scientific salary studies leave us to conclude that, in terms of compensation, it may be no more valuable than years of industry experience or a formal HR degree.

To the contrary, that’s not to say employers don’t respect the value of HR certification, they simply don’t require it as a hiring guideline. In a very un-scientific survey, we examined five different HR job postings on the largest internet employment website. The positions ranged from entry-level HR to director. The results regarding the requirement for certification ranged from “PHR helpful but not required” to “PHR certification strongly preferred.”

In making the decision to certify or not, consider how strong the credentials would appear on a resume. And the fact that certification may greatly increase your chances of making through the screening process. Something also to consider is how heavily an employer weighs its value when evaluating candidates for promotion.

The cost of certification is another important factor. According to the same study conducted by the HR Certification Institute, 59% of those already certified say their organization encourages them to pursue certification. Only 34% of non-certified professionals report receiving encouragement. Of those professionals, 55% say their employer will pay for the training, compared to 78% of the certified professionals.

When an employer leaves the cost to the employee, it matters even more and requires closer examination. The cost for the PHP is in the neighborhood of $1,000 and that includes the learning system, class and registration fees. The time investment is clearly important as well. The class alone is a 40-hour course and that doesn’t include study time.

Given the facts, here’s how one HR Vice President summed it up, “Certification is valuable to everyone, but common sense dictates that the economic value is greater for those who are early in their careers. If you are at the HR manager level or below, and can make the time to pursue certification, do it now. You’ll differentiate yourself from the herd, whether you plan to stay forever in your HR shop, or intend to switch jobs and companies in the next couple of years.” That appears to be excellent advice, especially coming from someone close to the top of his career.