WORTH IT? THE VALUE OF THE PHR AND SPHR. Career Momentum and Higher Salaries.

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1 WORTH IT? THE VALUE OF THE PHR AND SPHR Career Momentum and Higher Salaries

2 Competition is the name of the game throughout the business world. Businesspeople fight every day for markets, for customers, and for attention. Career growth and promotion are no different. Finding means of differentiating yourself from peers is a constant challenge. Human Resources (HR) professionals have the option of attaining the Professional in Human Resources (PHR) and Senior Professional in Human Resources (SPHR) certifications. Those that get them gain a valuable education, and also increase their job opportunities and pay. For white-collar jobs there are only a few ways you can improve your pay, and certifications are a top way to do that, says Katie Bardaro, analytics manager at online salary database, PayScale.com. New research conducted by PayScale.com quantifies the impact of gaining certification. The data shows that HR professionals with the PHR and SPHR designations move up the career ladder faster and make more money than those who lack either certification. This pattern holds across all industries as well as the largest metropolitan areas. Certification as an HR professional is becoming an integral step to building a successful HR career. Job Progression Holding a PHR and SPHR provides a powerful boost to career momentum. With either certification, HR professionals are more likely to advance to more senior roles. PayScale examined data on the career paths of HR professionals, in particular the frequency with which their job title changed over a period of five years. They next compared the rates of promotion for those with either certification against those who held neither certification. PayScale s analysts concluded that professionals with either the PHR or SPHR attain promotion more frequently and move into higher positions more often than those without either certification. Percentage Receiving Promotion Within 5 Years 0% 10% 20% 30% 40% 50% 60% 70% 80% Without Certification With Certification HR Director HR Manager HR Generalist HR Administrator HR Assistant

3 Frequency of Certifications at Higher Levels of Management PayScale's analysts looked at the certification status for respondents compared to their current job title. With each rung up the career ladder, the frequency of certification increases. In addition, the research shows that nearly half of those HR professionals with the greatest levels of responsibility hold either the PHR or SPHR. Percentage Of Those With Title Holding Certs Vice President, HR HR Director HR Manager HR Generalist HR Administrator HR Assistant % With PHR 24% 23% 24% 26% 11% 5% % With SPHR % With Either 20% 16% 6% 2% 0% 0% 42% 39% 29% 28% 12% 5% Frequency By Company Size While not a major factor, company size does play a role in whether or not HR professionals hold a PHR or SPHR certification. PayScale found that HR professionals with either certification are more likely to work at larger companies than at smaller companies. The slight decrease for the largest of companies may be tied to the fact that junior staff, which as we saw are less likely to hold a certification, make up a larger share of total staff. 10,000+ 2,000 to 9, to 1, to to 99 % With PHR 21% 23% 22% 22% 17% % With SPHR % With Either 9% 9% 9% 7% 5% 30% 32% 31% 29% 22% Pay Differences HR professionals who hold the PHR or SPHR tend to make more money than their peers who do not. While the difference is relatively small at more junior roles, the difference becomes more significant in more senior positions. The table shows that those at the Vice President level actually make a little less. This is potentially explained by the declining importance of the certifications at the higher levels, compared to factors like budget, scale of the enterprise and scale of staff. Vice President, HR HR Director HR Manager HR Generalist HR Administrator HR Assistant PHR Median Pay $59,000 $137,000 $78,100 $62,600 $50,300 $43,300 $34,600 SPHR Median Pay $86,600 $142,000 $96,300 $74,600 $57,200 N/A N/A Either Cert Median Pay $63,900 $139,000 $85,700 $64,900 $50,700 $43,300 $34,600 Neither Cert Median Pay $45,300 $149,000 $76,500 $54,200 $43,700 $38,600 $32,200 for

4 Value of Certification Wherever the zipcode, the PHR and SPHR certifications boost the pay of those that hold them. PayScale looked at the 10 largest metros in the country and found that those with certifications have a higher median pay than those without one. The median annual pay numbers listed here include HR professionals at all levels of experience, working in companies of all sizes. MSA Size Rank Metropolitan Statistical Area (either cert) (neither cert) 1 New York $73,800 $56,300 2 Los Angeles $77,600 $51,400 3 Chicago $68,000 $47,900 4 Dallas $70,400 $46,500 5 Philadelphia $68,000 $49,600 6 Houston $65,400 $46,400 7 Washington D.C. $78,600 $51,200 8 Miami $55,000 $46,400 9 Atlanta $63,300 $45, Boston $73,300 $53,300 Value of Certification PayScale examined the pay for HR professionals as a whole, across different industries and found that, once again, those workers with a PHR or SPHR earned more than those without. The median annual pay numbers here include HR professionals at all levels of experience, working in companies of all sizes. Industry Wholesale Trade Manufacturing Professional, Scientific and Technical Services Healthcare and Social Assistance Retail Finance and Insurance Construction Accommodation and Food Services Non-Profit Organizations Information Technology (either cert) $64,900 $63,200 $68,600 $59,300 $65,600 $67,500 $66,400 $64,800 $59,000 $68,200 (neither cert) $46,800 $47,000 $49,600 $40,500 $46,200 $49,700 $46,000 $43,700 $41,800 $53,200

5 The Bottom Line PayScale reviewed the impact of the PHR and the SPHR certifications on the careers of HR professionals and found that acquiring the certification led to faster career growth and higher median pay. The positive impact of the credentials could be seen across job titles, industries and geographies. Methodology Using its database of over 35 million profiles and 250 compensable factors, PayScale analyzed various aspects of Human Resources (HR) positions, comparing results for professionals with and without a Professional in Human Resources (PHR) or Senior Professional in Human Resources (SPHR) certification. Limiting its research to data from March 2011 to March 2012, PayScale determined how HR positions for those holding a PHR or SPHR designation differ from those without either certification, in terms of pay levels nationally, across 10 industries and the 10 largest metropolitan areas. Additionally, PayScale provided further analysis comparing company sizes and career progression. Definitions Total Cash Compensation (TCC): TCC combines base annual salary or hourly wage, bonuses, profit sharing, tips, commissions, and other forms of cash earnings, as applicable. It does not include equity (stock) compensation, cash value of retirement benefits, or value of other non-cash benefits (e.g., healthcare). Median Annual Pay with PHR/SPHR: This is the median, annual total cash compensation (TCC) for a person with the specified HR job title, holding the Professional in Human Resources or Senior Professional in Human Resources certification. Median Annual Pay without PHR/SPHR: This is the median, annual total cash compensation for a person with the specified HR job title, not holding a PHR or SPHR certification. Median Pay Calculations: There were no restrictions on company size, experience level, or other job qualifications when calculating the median pay figures. All pay figures are in 2012 dollars. Job Title 5 Years Ago: In PayScale s survey, users are asked what their job title was five years ago. This data was used to calculate the ratio of HR professionals whose job title five years ago was a lower level title than their current title for those with and without the PHR or SPHR. Job Titles: This group of jobs includes Human Resources (HR) assistant, Human Resources (HR) administrator, Human Resources (HR) generalist Human Resources (HR) Director, and Vice President (VP), Human Resources (HR).

6 About PayScale Creator of the largest database of compensation profiles in the world, PayScale, Inc. provides an immediate and precise snapshot of current market salaries to employees and employers through its online services and software. PayScale's products are powered by innovative search and query algorithms that dynamically acquire, analyze and aggregate compensation information for millions of individuals in real time. Publisher of the quarterly PayScale Index, PayScale's subscription software products for employers include PayScale MarketRate and PayScale Insight. Among PayScale's 2,200 corporate customers are organizations small and large across industries including Zappos, Volunteers of America and Manpower. To learn more about PayScale compensation solutions, please visit or call (888) More PayScale Resources: See the infographic of this report: Follow PayScale on Twitter: Follow PayScale on Facebook:

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