By Gary Gabelhouse

In the “Certification and IT Professionals” research study conducted by Fairfield Research, Inc., and Certification Magazine, 10,000 subscribers were contacted via e-mail and invited to complete an in-depth questionnaire on their certifications and their behaviors in pursuing certification. Of those contacted, 2,158 CertMag readers completed the questionnaire.

One of the key elements of the study was the analysis of the economic impact of IT certification enjoyed by certification-holders. This readership study has a maximum error range of plus or minus 2.1 percentage points at the 95 percent confidence level.

Certification—is it about the money? Yeah, mostly the money. Granted, there may be more virtuous and less secular reasons to pursue a technical certification. But the expectation of certification candidates is very much centered on the dollar, and making more of them.

IT professionals pursue certifications so they can contribute to mission-critical functions of the business enterprise. Through the certification process, they bring to the table a set of acquired skills that can help the business enterprise grow and/or have higher earnings. Since certificants contribute directly to company growth and profits, it is reasonable they expect a payday and a significant return on their certification training and testing investment.

According to “The IT Certification Training and Testing Market, 1998-2003,” a study conducted by International Data Corp. (IDC), the IT training and testing industries reached $2.5 billion in 1999 and is expected to reach $4.1 billion by 2003, representing a 15 percent growth rate.

As those numbers show, both IT professionals and the companies that employ them invest heavily in gaining better capabilities and resources. The vast majority of IT certification holders (75 percent) shoulder at least some of the burden of investment into technical certification. Only one-quarter of those readers studied had the entire cost of certification covered by their companies, while 45 percent picked up the entire certification tab, including study materials, books and fees.

So, with their own skins in the game and their own money at stake, certification candidates do have an expectation their certification will provide a return on the investment.

Sizable Investment

In order to understand the size of investment required by certificants and/or their companies, one can analyze what types of vendor-approved and third-party materials these professionals utilize in the certification process. Certification candidates purchase self-study books, product documentation and practice exams, in addition to flash cards and videos. They pay for the instructors and invest time in on-the-job training, as well as CBT programs and community college tuition. Their investment can be considerable.

Certificants have good ideas about how they will invest in certification in the future. The future purchase and usage intent among IT professionals with regard to certification materials was measured in the study. Conceptually, hard-copy materials show the highest levels of purchase and usage intent. In-person instructors and trainers, however, exhibited signs of becoming less and less important as an element in the certification process. Summing it up with regard to future investment, self-study books, CBT programs and documentation show the most projected growth as instructor-led training, vendor boot camps and college courses show little or no growth with regard to investment and usage.

According to the research study, the average Certification Magazine reader has already invested in 3.3 technical certifications—evidence that technical certification does pay tangible benefits. Also, nearly all (85 percent) of the certification holders surveyed were anticipating they would add at least one other certification to their vitae within the coming year. Would these IT professionals lay out their own good money for certification if they thought it would not provide an economic return? Doubtful. Consider this: Through statistical analysis of the survey data, the average technical certification contributed to an average increase in income equivalent to 12 percent (after earning the certification).

More Means More

The return a technical certification can provide is related to the value of the abilities resultant from the certification. Obviously, the return on investment of Microsoft’s MCP certification is not as great as compared to Cisco’s CCNA certification. As well, the value of certification has an additive effect. Basically, the more certifications the IT professional has, the more he or she tends to get paid—more beats less every time when it comes to certification.

In an analysis of income and the number of technical certifications held, each additional certification had an average added return value of between $2,200 and $3,000 per added certification. Evidencing more being better, the holder of one technical certification had an average income of $53,000. A person with five technical certifications makes nearly $10,000 more ($62,000). A person with seven technical certifications makes, on average, $71,000. The highly certified individual with 10 certificates makes, on average, $75,000 per year. Figure 1 shows the difference in pay range for those holding multiple certifications.

Not only are more certifications better with regard to the income of the certificant, certain combinations of certifications appear to bolster income. For example, if you held a Microsoft MCP certification, your average income is $53,230. However, if you added a MCSE certification to that, your average income would be $56,960. If you then were to add a Cisco CCNA certification on top of the two Microsoft certifications, your average income would jump to $59,380. Figures 2 depicts the increase seen by those adding those additional credentials. Figure 3, then, shows salary levels earned by those holding other certification combinations.

Industry Leaders

So, which certifications are the industry’s leaders and which are realizing the most investment? While the cost of certification varies widely, investment in certification programs can be defined by which have the most graduated candidates. Among the top five certification programs, Microsoft’s MCP certification had the largest body of certificants, achieved by 41 percent of the CertMag readers studied. Other prominent programs included Microsoft’s MCSE (32 percent had certification) and CompTIA’s A+ certification (22 percent). Microsoft’s MCP+I (19 percent) and Novell’s CNA (16 percent) round out the top five. Figure 4 shows the percentage of CertMag readers holding various credentials. Figure 5, then, lists the top 10 certification programs, as determined by analysis of the responses of CertMag readers.

Regardless of the share of certification holders accounted for by programs, the value and return on investment in those programs provides the IT professional with valuable information to help prioritize training. IT professionals are asking that certification providers, you guessed it, show them the money.

In this independent study (no certification providers provided funding for this study) the annual salaries of CertMag subscribers can be profiled with regard to the certifications they claim. Seven major certification providers were measured, considering annual salaries of their certified professionals who make up CertMag’s readership:

• Cisco
• CompTIA
• Hewlett-Packard
• Lotus
• Microsoft
• Novell
• Oracle

Pay By Program

The table in Figure 6 profiles reader salaries by certification program.

IT professionals holding Oracle and Lotus certifications led the salary grade, with Microsoft and CompTIA professionals rounding out the list. Oracle certificants earn 33 percent more than CompTIA’s and 17 percent more than your average Microsoft certification holder. Income, obviously, is influenced by several factors other than certifications held.

From the research study, individual certification programs were analyzed with regard to the income of certificants. This analysis provided some interesting information—especially useful for those considering pursuing one of the top 10 certifications. Figure 7 shows the average incomes of those readers holding the most-achieved certifications.

Subscribers holding a Microsoft MCSE+I had the highest income when considering the top 10 certifications, while, logically, those with the entry-level A+ certification cited the lowest salary level. Figure 8 depicts the salary increases realized by those achieving these top credentials.

Calculated Increases

In another, and perhaps more accurate, measure of return on certification investment, both the percent increase in salaries AND the increase in wages in terms of dollars was calculated for readers in each of the measured certification programs.

As stated previously, the average certification directly contributed to a 12 percent increase in salary—equivalent to a $5,821 return on certification investment.

Taking the industry leader, in terms of certification holders, Microsoft certifications resulted in a return of 10.9 percent or $5,778 return on investment.

Cisco shows its professionals the money more than any program measured in the CertMag study. Cisco certificants enjoyed a 17.8 percent salary increase, equivalent to $10,606. The same group had salary increases that were 84 percent higher than average. From analysis of the information provided by certified professionals, it appears that Cisco’s CCNA certification puts bacon with the beans on the table.

Novell certification contributed to a 13 percent salary increase—equivalent to a $7,080 increase and return on certification investment. With its CNA and CNE certifications, Novell provided its certification holders with a salary increase that was 23 percent higher than the average certification program.

Oracle certificants didn’t receive as large of a percentage increase as Novell professionals, but the Oracle certification-related salary increases were larger in terms of dollars. Oracle certificants received a 12.1 percent salary increase that, due to higher base salaries, generated more dollars ($7,471) in return. The average Oracle certification holder’s salary was $62,000, compared to the average Novell certification holder’s salary of $54,500. Regardless of the percentages, Oracle’s predominant OCP certification showed 28 percent more money than the average certification program measured.

Lotus certified professionals realized an average 10.1 percent increase in annual salary. While below the average percentage increase, Lotus certification–predominantly the Lotus CLP and CLS certifications–resulted in an above-par dollar return. The average Lotus certificant saw a salary increase of $6,168 after certification.

Hewlett-Packard certification contributed to an 11.1 percent salary increase—equivalent to a $6,098 salary increase and return on certification investment. Hewlett-Packard’s Technical Support and Repair certification, along with its IT Professional Systems Administrator certification, provided professionals with a modest 5 percent higher salary increase than the average certification.

While increasing their pay nicely, CompTIA certification holders saw the least return on certification investment. Its A+ certification was one of the most-often-held certifications, and both it and Network+ provided a 10.9 percent increase in wages, netting professionals a $5,058 salary increase —13 percent below the average certification measured.

Figure 9 shows the average salary increase by certification program.

Program Variables

When considering individual certifications, the return on investment in terms of salary increases varies with other certifications of the same certification provider. As an example, Figure 10 lists the percent and dollar returns of the 10 most-popular certifications.

The good news derived from the study was that all certification programs did provide candidates a tangible dollar return in terms of increased salary and wages.

Another measurement that can help determine the degree of economic impact of certifications is to aggregate both income and salary increases into an economic index of certification programs. The analysis, or indexing, in Figure 11 gives a more total picture of the economic return of certification—with salary, percent and dollar increase being equal.

Cisco and Oracle certifications provide the best overall economic impact and return on investment to certification holders, followed closely by Novell. Of the seven major certification providers studied, Cisco appear to provide professionals the most economic impact and return on investment.

Summary

While a lot of factors go into one’s decision to get and stay certified, like job advancement and career satisfaction, certification is largely about money. IT professionals spend billions on getting certified and should, hence, expect a return on their investments in themselves and their companies. There is no doubt that certification does serve to increase the annual salary of IT professionals—with the average certification providing a 12 percent increase in salary, equivalent to $5,821.

When one considers all economic measurements of certification benefits, Cisco certifications set the gold standard. And while Microsoft and CompTIA certifications provide a smaller economic gain, they each do provide their certification holders a solid return in terms of salary increases—between $5,058 and $5,778. That, folks, isn’t chicken feed.

Certification does show you the money!