Putting a Value on Qualifications

How would you like to earn an extra £152,000? Well, according to recently published research*, that’s the lifetime value of holding professional qualifications and being a member of a professional body.  Being professionally qualified also makes you 9% more likely to be employed and gives you a 37% pay advantage over those without such qualifications.

The study was carried out by highly regarded consultancy London Economics on behalf of eight professional bodies in the UK and covered professional qualifications of all types. According to the study the benefits come in two ways. First, obtaining and maintaining your qualifications gives employers assurance that you know your stuff and improves your performance in the job, as well as your general employability. And there is also a more indirect advantage that is attributed to the networking effects of belonging to a professional body, making contacts and raising your profile.

The benefits are not restricted to the individual: from the perspective of employers, having qualified people around raises the general productivity and competence of the team, and of the organisation. The report also has a message for government – a significant proportion of those additional earnings will end up as tax revenue, giving a further justification for increasing government support for professional skills training so that more can benefit.

An interesting aspect of the study is that it demonstrated the value of professional qualifications to those at all levels: those benefiting from the boost offered by qualifications were of all ages and had attained various levels of formal education before embarking on their professional qualifications, most of which were obtained while in employment.

We have seen that the reaction of many companies to hard times is to slash expenditure on training and withdraw support for professional membership. It’s an easy thing to do but if taken too far it could turn out to be a poor move. After all, incompetence can prove just as expensive in the longer run.

So, in a turbulent world, professional qualifications and membership could turn out to be one of the best investments around.

Carolyn Williams

Development Manager

The Institute of Risk Management

January 2009

*Commissioned by the Consultative Committee for Professional Management Associations (CCPMO)

This article first appeared in CIR Magazine