Importance of HR Certifications from the view of global HR space~Issued: May 2021

Human Resources (HR) certifications play a critical role in the global HR space by ensuring that professionals possess the necessary skills and knowledge to handle complex HR challenges. They provide a standardized measure of expertise, essential for maintaining high standards in HR practices worldwide. Certifications such as those offered by SHRM (Society for Human Resource Management) help HR professionals stay updated with the latest industry trends, legal requirements, and best practices, enhancing their credibility and career prospects while contributing to the overall efficiency and effectiveness of the organizations they serve.

HR Certifications in the World

Let’s Google by the keywords, such as “HR certification US”, “ HR certification in UK,” and “HR certification in India” “HR certification in UAE.”  In these four countries, the search resulted pretty much the same.  Top-ranked HR Criticizations are: “PHR,” “SPHR” by HRCI (The HR Certification Institute), and “SHRM-CP,” “And SHRM SCP” by SHRM (The Society for Human Resource Management).  HRCI was originally positioned as an accreditation institute for SHRM.

These HR Certifications have some requirements, like years of HR practice, etc., for taking the examinations, and intensive study is a “must” to pass such examinations.

In the UK, CIPD (The Chartered Institute of Personnel Development) issues” CIPD Qualification.” However, it is also available through experience assessment without exams. As such, CIPD Qualification is slightly different from Certifications.

Values of HR Certifications in US

（data source：https://www.payscale.com）

As per the search result, I would like to look further at the situations in the US for HR Certifications, where the most recognized HR Certification issuers, HRCI and SHRM, originated.

From the payscale.com dataset covering 10 years from 2008 to 2018, the parentage of HR professionals holding more than one HR certificate peaked at 44% in 2018 and 36.4% in 2018.

Which Certificates Are Most Prevalent in 2018?

（data source：https://www.payscale.com）

In 2018, HRCI certifications are most prevalent, and 30.4% of HR professionals in payscale.com dataset have at least one certification from HRCI. (HRCI has been offering HR certifications for over 40 years).  20.7% of HR professionals have SHRM Certifications (SHRM has been offering HR certifications since 2015).  These data tie to the search results in four countries as most popular HR Certifications.

HR Certifications By Career Levels

（data source：https://www.payscale.com）

Higher-level HR professionals are more likely to have an HR certificate. While only 5.2% of HR Assistants have at least one credential, 35.5 % of HR managers are certified, and 51.1 % of HR vice Presidents are certified, which is 10 times more than HR Assistants.

An HR Certificate is effective for an HR Professional advancing a career in the HR space. In other words, your investment in gaining HR knowledge and acquiring an HR Certificate will have a return. 

HR Certifications Are Gaining Value Over Time

（Data source：https://www.payscale.com）

Pay Boost Associated With Certification Holders　(Based on Median TCC)

Over the last 10 years, getting certified has become increasingly valuable to HR professionals, both from a pay perspective and a career acceleration perspective.

In 2008, the pay boost associated with any certification was 17 percent. The pay boost has climbed steadily, reaching close to 40 percent in 2016 before dropping slightly in the last two years. In 2018, the pay boost associated with having an HR certification was 31.6 percent.

Getting Certified Help Increase Pay, but Only Up to a Point

（Data source：https://www.payscale.com）

Having a credential can help you increase your pay early and mid-career until you reach the director level. Once you’re at the director level, certifications do not yield an incremental boost in pay. We believe it’s likely that higher-level HR professionals have gained enough practical experience that they no longer reap benefits from renewing their certifications, so they’ve allowed their certifications to expire.

Importance of HR Certifications, and now and going forward.

“Professional Certification is a Passport”, I advocate.  If you have a passport issued by an authority well-recognized by the world, you can easily cross many borders and expand your activities to many areas of the world.  If the passport is well recognized, you often don’t even need an entry visa, and you are barely being questioned at the Immigration counter.  I think HR Certification is like your passport in your HR career.  You can cross borders much more easily, and by being recognized as an HR specialist, many doors will open for you.  Naturally, a much more important thing is what you will do, what you are able to do, and how well accepted beyond the border.  That being said, though, if you can cross the border with less effort, you just concentrate your efforts once beyond the border. 

It can be said that just like a passport is necessary for global mobility to verify one’s identity, professional certification is important for global business activities to prove one’s professional specialties. 

Of course, you can practice HR without HR Certification and advance your career as an HR professional with your skills and efforts.

In this article, I was able to share information about the most recognized HR certifications in the US, UK, India, and UA, and some data stats to show the positive influence of these HR Certifications over HR professionals in both career advancement and pay boost.

The dataset provided by payscla.com was for the decade up to 2018, exactly pre-COVID-19. We are in the middle of COVID-19, and what differences will we find in that dataset now and post-COVID-19? It must be so interesting to see the comparisons.

Simultaneous worldwide changes we all face, lifestyle, work style, and paradigm shift of the nature of work by force of COVID-19. Is there anything like this before in our history—evolving changes, including everyone on earth? It has a huge impact, especially on HR professionals worldwide, on the meanings of HR careers and the values of the HR profession.

This is my personal perspective, but I assume the number of HR professionals with HR Certifications will continue to grow after 2019 in the US and the rest of the world.

HRAI-Human Resource Accreditation Institute

HRAI is operated by ASTAR LLP, the first and only Official Partner with SHRM in Japan.  HRAI is fostering and empowering HR professionals in Japan. 

Since January 2021, HRAI has provided the SHRM Essentials of Human Resources program in Japanese, English, and bilingually (both Japanese and English). The program provides an introductory overview of key HR topics and the fundamental HR issues in two full-day programs. 

After completing the program and assessment, you will earn a SHRM Credential.

For more information, please visit our website https://hr-ai.org

HRAI is thriving for our aim to promote world class HR education and HR certifications in Japan.

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