Human Resources Certification Increases Salary by $20,000

Human resources professionals can add more than $20,000 to their annual salaries by obtaining specialized certifications, a new survey shows.

“The Value of PHR and SPHR Certifications: Sugar Coating or Career Sweetener?“, a study by Payscale, examines the worth of Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR) designations. It reveals notable increases in salary and career advancement opportunities for those who hold such certifications.

The study looked at human resources salaries in 20 metropolitan areas and found that 93 percent of those with SPHR certifications earn more overall than those with no certification. Holding either the PHR or SPHR certification leads to a $20,000 boost in salary over those individuals who hold neither.

However, this advantage involves more than salary: Those with certifications are more likely to be promoted than those without them. Within a five-year period, 63 percent of HR assistants with a certification received promotion while 34 percent without a certification were not granted a promotion.

According to the HR Certification Institute, the PHR certification is designed for human resources professionals who have between two and four years of experience in the industry but have yet to move on to more senior-level positions. The certification process consists of a 175-question multiple-choice exam that focuses on six areas: business management and strategy, workforce planning and employment, human resource development, compensation and benefits, employee and labor relations and risk management.

While the SPHR exam focuses on the same areas as the PHR test, the former is designed for professionals with six to eight years of experience. It aims to define the overall function of HR within an organization — in other words, it looks at the big picture.

The Corporate Executive Board reports that less than half of human resources departments play a central role in a company’s strategic planning, while a “competitive talent strategy” is becoming increasingly integral to business success. The Society for Human Resource Management finds that two trends in particular will impact human resources departments in the next five years: the large number of baby boomers expected to leave the workforce and a shortage of skilled workers. These trends will make it imperative for human resources executives to possess the expertise necessary to attract new workers and meet company goals.

The report also shows that nearly half of HR vice presidents hold one of the certifications, with 25 percent holding an SPHR and 19 percent holding a PHR.

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