New, independent economic impact analysis reveals that individuals with professional qualifications and membership of organisations, such as IOM and CILT, stand to gain £152,000 in additional earnings over the course of their career.
Commissioned by eight of the UK's leading professional bodies - including CILT, the Chartered Management Institute (CMI) and the Chartered Institute for Personnel & Development (CIPD) – the study is based on analysis of data for six consecutive quarters of the Labour Force Survey. Key findings include:
- 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 in today's money terms
- 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 on offer, according to the study. 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.
Speaking at the launch of the report at the Houses of Parliament today, Steve Agg, Chief Executive of CILT (UK) said: ‘‘Professional bodies are here to provide learning and development opportunities for everyone and, with our understanding of the needs of our respective professions we are a unique resource which government should embrace in working to skill the nation's workforce'.
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 & 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.
Click here to view the full report…
