CERTIFICATION: Something of Value By Gary Gabelhouse The late Gen. Lewis Chesty Puller was the most highly decorated Marine in the history of the service. A fervent believer in self-improvement as well as self-dependency, one often-used Pullerism was, The only thing that s good for you is you. He was often heard telling his troops, Reward yourself do something for you. The best investment one can make is an investment in one s self. While we may realize non-economic benefits for investing in ourselves, rarely does one find black-and-white, dollars-and-cents benefits from investing in one s self. Certification is the exception to that rule. One self-investment that does provide a tangible and relatively immediate return is technical certification. More than half (51 percent) of the millions of IT and technical professionals invest in themselves in this manner every year. As shown in Figure 1, the majority of technical certificants pay for or at least share the costs of technical certification with their employers. They have real skin in the game are making a very real investment in themselves. So it is natural that with such an investment made, these professionals expect more than a feel-good result from their certifications they expect an economic return. According to the respondents to Certification Magazine s most recent survey, the current technical-certification market is both large and active. Technical certificants hold more certifications now than last year an increase of some 29 percent over 2000 this in the face of a sluggish technology industry. According to the study results, the average certificant currently holds nearly four (3.86 on average) different technical certifications. Not only do these IT professionals have multiple certifications now, they plan to aggressively pursue even more in the
future. Seventy-nine percent of the professionals surveyed said they plan to pursue additional certifications in the coming year. The Certificant Population Who are these apparent certification junkies? As the Certificant Profile shows, they are predominantly younger (average age is 33 years old) males (84 percent) who received their first certifications in 1997 and have been in the IT industry for 8.38 years. Since their first certification, they have attained, on average, one new certification per year. It appears they have a history of education, as 65 percent have college degrees, with 18 percent having graduate and professional degrees. The 35 percent who are not college graduates have taken classes at technical colleges and institutes. The largest number (34 percent of study respondents) of these technical certificants work jobs in networking network engineering, network management and network administration. The vast majority of certificants studied were primarily on the Windows platform (73 percent), with 18 percent citing Linux/UNIX as their primary platform. These IT professionals, on average, have been at their current company for the past four years (4.18 years) and have been in the same job position for a little longer than three years (3.1 years). Their companies tend to be large averaging 560 employees. Eighty-seven percent of the study respondents were W-2 employees, and 13 percent were 1099 contractors. The average salary of the certificants studied was $55,577. The Certification Landscape These IT professionals have attained a wide cross-section of technical certifications, but all had what they considered to be a primary certification. While it is impossible to develop true share-ofcertification data from the study, among the most popular certifications were Microsoft s MCSE and MCP as well as Red Hat s RHCE. Also among the most popular certifications were Prosoft s CIW and CIW Professional, Cisco s CCNA, Novell s CNE, CompTIA s A+, Compaq s ASE and Lotus CLP. In order to understand the ROI (return on investment) of certifications, one important consideration is the cost of getting certified. On average, including travel and materials as well as
fees, certification costs $1,934. Of this total amount, $338 is spent on materials. With regard to the investment in study material, 77 percent purchased self-study books, and 68 percent bought and used practice exams. One-third of certificants used product documentation. Less-popular study materials included flash cards (8 percent) and instructional videos (3 percent). This being understood, we must take a more in-depth look in order to understand the real value of certications. Job promotions and raises in salary must be considered along with the cost of certification in order to understand the value of the certification in terms of economics. Certifications and Job Promotion Of the certificants studied, 37 percent received a promotion within the first year of attaining their primary certification. While promotion does not necessarily mean an increase in salary, it is an indicator of long-range economic benefits to be realized on the job. Of course, there does not have to be a causal relationship between attaining a certification and receiving a promotion. Of those certificants who did get promotions, most (83 percent) felt their certifications played a major role in the advancement. It has been said that one cannot eat a title. Especially in these times of economic sensitivity, IT professionals are expecting certifications to make the cash register ring. How are such economic expectations being fulfilled? According to the study findings, certificant expectations are being met quite well. Certification and Raises On average, more than half (53 percent) of the certificants studied reported they had received a raise within the first year of attaining their primary certification. Of those certificants who received a raise in salary, 74 percent said their primary certification had a significant impact on their salary increase. Thirty-nine percent of the certificants studied said they received a definite, certificationrelated raise within the first year of attaining their primary certification. The top 10 certifications that directly drove a salary increase for certificants are illustrated in Figure 2.
The average certificant studied reported a 10.2 percent salary increase within the first year of attaining the primary certification. While this constitutes a healthy raise, some certifications delivered noteworthy increases for certificants. Microsoft certifications were the top three certifications generating salary in-creases. Microsoft s MCT (24.1 percent raise), MCSD (17.6 percent raise) and MCSE+I (14.6 percent raise) generated the most dramatic percent raises for certificants. Figure 3 shows the top 10 certifications for percent raises realized by certificants.
Certifications can also be judged and ranked by the dollars they generate in raises for certificants. This is a function of not only the percent increase realized due to certification, but also the original salary of the certificant. Through straight mathematical factoring, one can determine the dollars in increased salary generated by a certification. The average certificant realized a raise of $4,477 within the first year of attaining the primary certification. As in other economic analyses of certifications, one can judge and rank certifications for their sheer dollar power in terms of raises a tangible metric of certifications. Certifications and ROI Carrying the analysis of certifications even further, one can calculate the return on investment (ROI) of certifications. Factoring in the cost of certification with the dollars generated in terms of salary increases resulting from that certification, one can calculate an accurate first-year ROI. The average certification had a first-year ROI of 2.3 to 1. That is, for every dollar invested in the certification process, the certificant realized $2.30 in terms of certification-related raises within the first year. Clearly, this ROI builds and aggregates dollars beyond the first year, posing a payback that would be envied by even the most avarice-filled of venture capitalists. Figure 4 shows the top 10 certifications with regard to providing first-year ROI.
An interesting analysis of the study data compared the perceptions of the price-value of certifications to the reality of their ROI. Study respondents were asked to rate their primary certification with regard to its price/value. Rating certifications for providing excellent price/value to poor price/value, the average certification was seen as providing a good price/value. See Figure 5 for a rating of certifications with regard to their price/value as seen by certificants. While study respondents rated their primary certifications as good, individual certifications varied as to their perceived price/value. When one also plots the true ROI against the perceived value, one can see some exceptions with regard to perception versus reality. Of the 10 highest-rated certifications for price/value, more than half performed worse in reality than perceived by certificants. Those providing a better price/value than perceived by certificants included Microsoft s MCSD, Lotus CLP, CompTIA s A+ and Cisco s CCNA. Certification and Salary Levels
Another element of the economic value of a certification can be seen in the average salaries of the IT professionals who have these certifications. The average certificant had a salary of $55,577. Salary, as a function of the primary certification held, offers an interesting perspective on the value of certifications. For the top 10 certifications with regard to the salary level of their certificants, see Figure 6. Not only do individual certifications seem to have an impact on certificant salaries, the number and even the combination of certifications appear to impact salary. Perhaps most apparent is the fact that when it comes to certifications, more is better. There is a reason to seek multiple certifications it appears that the more certifications you attain, the more you ll be paid. The IT professionals in the survey who had only one certification had an average income of $49,852. Certificants holding two to three certifications made, on average, 7 percent more, with an annual salary of $53,559. Certificants holding four or five certifications had an average annual salary of $59,868. When certificants held six or seven certifications, their average annual salary jumped to $64,560. Certificants holding six certifications make, on average, 30 percent more each year than certificants who have only one certification. Figure 7 shows the salaries of certificants according to number of certifications held.
When evaluating multiple certifications, the number of certifications is not the only factor having an impact on one s salary. Combinations of certifications also seem to have a relationship to the salary of certificants. For example, the average salary of a certificant who has only an MCP certification is $49,214. After adding an MCSE certification, the salary jumps to $61,589. If one adds a CCNA certification to the mix, the salary jumps to $72,021. Salaries of certificants with specific combinations of certifications are shown in Figure 8. Another interesting comparison concerning the mix of certifications and impact on salary levels can be found when comparing cross-program certifications. For example, if one has both an MCP and an MCSE two Microsoft certifications the salary is $61,589. But if you have a twocertification mix that includes MCP and Lotus, the salary is 13 percent higher $69,312. Certifications and Experience When considering the things that impact the salary of an IT professional, one must go beyond certifications and look at the experience levels of the certificants. On average, the certificants studied have 8.38 years of IT experience. They have an annual income of $55,577. When you consider the salaries of certificants with less than three years experience, you see significantly lower average pay $38,793. As you would expect, as the experience level increases, so does the annual salary. Certificants with 10 years of IT experience make 57 percent more than those certificants with less than three years in IT. (See Figure 9.)
Logically, the longer someone has been in IT, the longer he or she has had to pursue and acquire multiple certifications. The relationship between the years of IT experience and the number of certifications held is significant. The two go hand in hand both with the result of increased certificant salaries. Summary The certification market is made up of a large and diverse population of young (33 years old), largely male IT professionals most often involved in networking. Certifications have provided these IT professionals a significant and almost immediate economic benefit. Since learning of this reality, these IT professionals have achieved multiple certifications averaging four certifications each and they have an appetite for more certifications. A vast majority (73 percent) of those who already have technical certifications will seek additional certifications in the coming year. A majority (53 percent) of certificants report having received a raise within the first year of attaining their primary certification. Most (74 percent) felt that their certification had a significant impact on getting that raise. The average certificant in the United States received a certificationrelated raise of 10.2 percent, which equated to a $4,477 increase in salary. Given that the average cost of a certification was $1,934, the average first-year ROI was 2.3 to 1, which means that on average, for every dollar invested in a certification, the certificant realized a $2.30 return within the first year. Microsoft s MCSD certification was the ROI gold standard, providing its certificants an incredible 17.8 to 1 first-year ROI. Microsoft s MCT certification was the leading program for generating raises in terms of dollars. MCT certificants, on average, received $15,728 raises in the first year after certification attainment. In addition, MCT generated the largest percent increase in salaries for certificants a whopping 24.1 percent increase within the first year of attaining the certification. Simply stated, more certifications are better. The average holder of only one certification makes $49,842. The average holder of four certifications makes $59,868, more than $10,000 more any questions? Also, cross-program certifications appear to be a good strategy to realize increased salaries. Strategic combinations of certifications appear to provide extraordinary benefits in terms of the salary levels of certificants.
While certification provides individuals and companies with more than just economic benefits, there is no doubt that this form of self-investment provides solid and significant returns something of value.