Professionalism pays: report reveals lifetime benefits of 152,000

New, independent economic impact analysis reveals that individuals with professional qualifications and membership stand to gain 152,000 in additional earnings, over the course of their career. A study published today also uncovers wide benefits to the public purse, as professionally qualified individuals deliver higher tax revenues for the UK Exchequer.

Commissioned by eight of the UKís leading professional bodies* 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 todayís money terms

- revenue driver: based on todayís 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 Governmentís Skills Strategy. Together, the eight Institutes deliver over 50,000 qualifications per year and, in line with Government plans to ìensure employers have the right skills to support the success of their businessî, the majority of ëstudentsí undertake qualifications while remaining in employment.

Speaking at the launch of the report, Charles Tilley, chief executive of CIMA and chair of the Consultative Committee for Professional Management Organisations, said: ìDriving up the demand for professionalism in the UK has the potential to be immense. Not only can individuals benefit at a personal level, but the spill-over effect brought about by influencing team members can have a huge impact on UK productivity.î

The report also highlights how professional qualifications are ëopen accessí, 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.

Ruth Spellman, chief executive of the Chartered Management Institute, commented: ìWith 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.î