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The Professional Testing Blog

Calculating Your Investment Now and in the Future

In a recent Internet search, I came across Professional Certifications: Can we Avoid Them? by Uganda-based consultant, Michael Niyitegeka. In this article, he suggests that in the wake of education commoditization, education qualifications have become “tradable goods,” forcing employers to find alternative avenues to gauge one’s competency above and beyond academic qualifications.  While we might share a different view about education, the point that certification plays a role in qualifying people for employment or takes over where education leaves off is worth examining and assigning a value to.

The article further sites that the Return on Investment (ROI) for professional certifications is greater than 100% for both the individual and the organization. A 2010 study, conducted by the HR Certification Institute in the U.S., reported an average certification ROI of 253% for individuals and 216% for organizations. Similar findings have been reported across other professions.  Impressive metrics, but I’m not sure how the metrics were calculated and if all certification organizations experience such growth. So this makes me think more about ROA—Return on Assets—than percentages when calculating the value proposition of your certification program.

As we noted in our post Fostering a Culture of Excellence Through Certification, credible certification programs can create an industry standard where none had previously existed.  This trend has been especially predominant in emerging and rapidly growing specialty areas such as health care, engineering and information technology.  In these instances, certification has validated and defined a distinct set of skills and knowledge for an industry and the public to utilize, and has kept up with them over time well beyond initial training. Certifications have also helped redefine and refocus professions and/or workforce segments that have not remained competitive, or whose reputations have suffered through a lack of accountability or wrong-doing.

Whether a profession is emerging or re-tooling, a credible certification program has the ability to foster a culture of excellence for an organization, create an identity for its certified persons, and provide a level of trust to the public—a value proposition that all organizations and professionals should find beneficial.  This is also one aspect of value and reputation management the certification organization can control.  So, when determining the ROI for individuals and organizations, think beyond percentages and growth—it is just as important to include factors such as “credibility” and the reputation associated with certification.  Adjust your thinking of ROI to ROA—the total package certification provides through credible assessment, recertification, ethics, accountability, and integrity in governance.  While these aspects of a certification program may be more difficult to quantify and apply metrics to, there is value associated with them.

Certifications are important for both the individual and professions alike.  For many, they also provide a recognized standard for our global workforce, a pathway to a job, and demonstration of an individual’s commitment to excellence.  As you assess the ROA, consider the risk of certification organization NOT developing a credible program, administering unreliable assessments, and letting practitioners who are not qualified distinguish themselves with a credential.  Think of the implications to the reputation of a profession, a workforce and an organization.  And think of the costs associated with losing credibility and trust.  When the value proposition is cast in these terms, credible certification programs are certain to pay off!

Categorized in: Industry News