Pursuing an HR certification requires evaluating the investment against the potential financial and professional return. HR professionals seek these credentials to validate their expertise and elevate their career trajectory. Evaluating the worth of a certification involves analyzing the initial costs and time commitment against the measurable career advantages and professional validation it provides. This analysis requires understanding what these certifications represent and how the major providers differ in their focus and structure.
Understanding What HR Certifications Are
An HR certification is a professional designation demonstrating a specified level of competency and knowledge in human resources. This credential is distinct from a college degree or academic certificate program. While a degree confirms curriculum completion, a certification validates current practical knowledge, proving an individual can apply HR principles in a work setting. Certifications require a professional examination to confirm proficiency and mandate periodic renewal. This renewal, usually involving continuing education credits, ensures the holder’s knowledge remains current with evolving laws and best practices.
The Major Certification Providers
The HR certification landscape is primarily governed by two major organizations, each offering a suite of credentials tailored to different career stages and professional focuses. These providers differ in their examination structure, focus on compliance versus competencies, and overall approach to HR practice.
Society for Human Resource Management (SHRM) Certifications
The Society for Human Resource Management (SHRM) offers two primary certifications based on a competency model emphasizing practical application and leadership skills. The SHRM Certified Professional (SHRM-CP) is designed for professionals in operational roles, executing HR policies and procedures. The SHRM Senior Certified Professional (SHRM-SCP) is aimed at senior-level individuals who formulate strategy, lead the HR function, and align HR practices with organizational goals. Both SHRM exams include knowledge-based questions and situational judgment items, testing how a candidate applies knowledge in real-world scenarios.
Human Resources Certification Institute (HRCI) Certifications
The HR Certification Institute (HRCI) provides credentials focusing on technical and operational HR knowledge, including compliance and U.S. laws. The Professional in Human Resources (PHR) certification is geared toward those who implement programs and have a tactical, operational focus. The Senior Professional in Human Resources (SPHR) is designed for experienced professionals concentrating on strategic planning and policy-making. HRCI exams generally consist of multiple-choice questions testing mastery of the HR body of knowledge.
Other Specialized Credentials
Beyond the main generalist credentials, both organizations offer specialized certifications addressing specific niches within the HR field. HRCI offers designations such as the Associate Professional in Human Resources (aPHR) for those new to the field, and the Global Professional in Human Resources (GPHR) for those working in international roles. These credentials allow professionals to demonstrate expertise in areas like global HR practices or specific state laws, such as the Professional in Human Resources – California (PHRca).
Tangible Career Benefits and ROI
Obtaining an HR certification provides measurable advantages that translate into a positive financial return on investment (ROI) and improved job marketability. Certified HR professionals frequently see an increase in their earning potential compared to their non-certified counterparts. One study indicated that professionals with a certification could earn more annually, with the median pay gap exceeding $19,000 in some reports.
Certification improves a professional’s standing in the job market, often acting as a baseline requirement for many mid-to-senior level positions. A percentage of HR Vice Presidents, for example, hold either a PHR or SPHR certification. The credential signals to employers that a candidate possesses a verified body of knowledge, making them a desirable hire and potentially opening doors to higher-level roles. Certifications are also associated with career advancement, as certified HR Assistants and Administrators showed a higher rate of promotion within five years than those without the designation.
Intangible Value and Professional Validation
While the salary boost is a clear benefit, certifications also provide non-monetary value contributing to long-term career success. Earning a certification validates an HR professional’s existing expertise and knowledge, confirming proficiency to peers and leadership. This external validation boosts professional confidence, allowing them to approach complex tasks and strategic decision-making.
The certification process and its maintenance require staying current with evolving compliance requirements and best practices. This ensures the professional’s knowledge is contemporary, which is important in a field frequently impacted by changes in employment law and technology. Certification also connects professionals to a broader community, providing access to networking opportunities, industry resources, and continuous professional development.
The Investment: Costs, Time, and Maintenance
The pursuit of an HR certification requires investment in financial resources, personal time, and ongoing effort. Initial financial costs include the examination fee, which ranges from approximately $400 to $700 depending on the credential and the applicant’s membership status. Study materials, such as learning systems or preparation courses, represent another expense, potentially adding hundreds of dollars to the total cost.
The time commitment for preparation is considerable, often requiring many weeks of dedicated study to master the extensive body of knowledge. Once earned, the investment continues, as all major credentials require recertification every three years. This maintenance involves earning a set number of continuing education credits, known as Professional Development Credits (PDCs) or recertification credits. These credits are acquired through professional activities, such as attending seminars or completing HR-related education, and professionals must pay a recertification processing fee to maintain active status.
Determining the Right Certification for Your Career Stage
The decision of which certification to pursue should align with an individual’s current professional experience and future career objectives. For those newer to the field or in an operational role, a credential like the PHR or the SHRM-CP, which focuses on tactical implementation, is the most appropriate starting point. Professionals with extensive experience moving into strategic leadership should look toward the SPHR or the SHRM-SCP, as these credentials test the ability to design and evaluate HR business strategies.
Geographic focus is another factor; HRCI certifications emphasize U.S. laws and regulations, while SHRM credentials focus on global competencies. Career goals, whether aiming for a generalist path or a specialization, will also dictate the choice, potentially leading to a specialized certification like the GPHR. Aligning the certification choice with the recognition preferences of a current or desired employer ensures the credential provides the maximum practical advantage.