Professionalism pays: Report reveals lifetime benefits of £152,000

Independent economic impact analysis commissioned by the Consultative Committee for Professional Management Organisations (CCPMO) – a group representing eight leading professional bodies* in business disciplines, including The Chartered Institute of Marketing – reveals that individuals with professional qualifications and membership stand to gain £152,000 in additional earnings over the course of their career.

The CCPMO study is based on analysis of data for six consecutive quarters of the Labour Force Survey, and reveals three key findings:

• Boost in earnings: the estimated lifetime economic benefit associated with holding professional qualifications has been valued at £81,000. The study also shows how membership of a professional body can result in additional earnings of up to £71,000

• Revenue driver: based on today’s taxation levels the estimated additional lifetime tax revenue contributed by an individual with professional qualifications and membership currently stands at £53,000

• Employer value: individuals with professional qualifications and membership enjoy a 9 per cent increase in the probability of being employed because of the transferable skills offer. This figure, coupled with the 37 per cent wage premium received by professionally qualified staff, demonstrates the high value employers place on the skills developed by professional bodies

The report shows that professional training and development is a key lever of support for the Government’s Skills Strategy. Together, the eight Institutes deliver over 50,000 qualifications per year and, in line with Government plans to “ensure employers have the right skills to support the success of their business”, the majority of ‘students’ undertake qualifications while remaining in employment.

David Thorp, director of research and information at The Chartered Institute of Marketing, commented: “With 70 per cent of the 2020 workforce already in employment, the prosperity of the nation is dependent on up-skilling and updating knowledge. The creation of a Professional Skills Council would deliver significant value by simultaneously highlighting employer need, raising employer ambition and encouraging UK organisations to make strategic investments in the development of their teams. After all, if employers think competent people are expensive, they should take a moment to think about the cost of incompetence.”

The report also highlights how professional qualifications are ‘open access’, ensuring that individuals are able to build transferable skills no matter what their previous qualification level has been. By demonstrating that professional qualifications are undertaken across a range of age groups, and are split evenly by gender, the study shatters the myth that professionalism is elitist.

Against this backdrop, the eight professional bodies are collectively calling for the creation of a Professional Skills Council. The aim is to create greater value for the UK Commission for Education and Skills by raising demand for professional and higher-level skills across the 25 Sector Skills Councils and identifying gaps and shortages of professional skills across a range of industries.

* The members of the CCPMO are the Chartered Management Institute, Chartered Institute of Logistics and Transport, Chartered Institute of Management Accountants, The Chartered Institute of Marketing, Chartered Institute of Personnel and Development, Chartered Institute for Purchasing and Supply, Institute of Credit Management and Institute of Chartered Secretaries and Administrators.

This informal CCPMO partnership was formed in recognition of the fact that the current infrastructure for skills – driven by sector and regional priorities – makes inadequate provision for supporting the higher-level business skills that are critical to all sectors and regions. As independent bodies with a well-established and successful track record of meeting market needs, we promote life-long learning and continuing professional development. Our mission as chartered bodies, some of which are also charities, is to raise standards of performance through world-class professional development.