The Perks of Getting Certified

It’s a tough world out there. In this competitive environment of converging markets, stark competition and demanding employers, the need to be at the top of one’s game has become even more crucial.

Enron’s aftermath has given rise to a succession of rules for the world of accounting and finance , not just in the US but on a global scale. And Sarbanes Oxley is not the only case or act. For many decades, the presence of US corporations in all four corners of the planet has placed the US GAAP at the forefront of every company’s financial statements. Today, the insurgence of IFRS is opening doors to the adoption of a common set of financial reporting standards on the international front, with even the US joining in. And hence being empowered with up-to-date practical knowledge is indispensable.

Globalization has indeed turned the world into an open job-hunt arena, thus affirming the rise of international recognition over the sometimes more restricted national credential. Consequently, employers have the right to be harder to please. And, in fact, they are. Demanding high standards of achievement from prospective team members, companies expect no less than the mastery of the trade, a high level of professionalism and a commitment to continuing professional education. More often than not, these add up to two words: getting certified.

The many upsides.
Other than being a citizen of the world, getting international recognition through certification offers undisputable benefits, so much so from an individual perspective as from an organization’s standpoint.

Certified professionals not only confirm broad business competency by completing a rigorous curriculum, but they achieve instant professional recognition and a competitive advantage in the marketplace. They are therefore better positioned for career advancement, in addition to consequently joining an elite group of professionals.

As Brian J. Glade, SPHR-GPHR, The Society of Human Resources’ (SHRM) Vice President of International Programs explains: “Certification sets those with the credential apart, or above, those without it. There are a number of advantages to seeking certification. Certification becomes a public recognition of professional achievement, both within and outside of the profession. For many, achieving certification becomes a personal professional goal, a way to test knowledge and to measure it against one’s peers. Others see certification as an aid to career advancement.”

But probably the most coveted benefit remains the monetary compensations that derive from getting certified. According to Bryan Gibb, Director of Education and Training Products at The Association of Financial Professionals (AFP), research reveals that on average and depending on the level, CTP (Certified Treasury Professional) certification results in a salary increase by 10-30%, while the Institute of Management Accountants’ (IMA) 18 th Annual Salary Survey observed that certified accountants earn 27% more than those who are not.

The downside (or not).
Despite all the benefits, certification does come at a price. Other than the obvious financial costs involved in the process (from course enrolment to purchasing review material, exam fees and in some instances, membership), the most important challenge for a certification candidate is to make ample time for study. Going through the rigorous curriculum requires one’s undivided concentration, dedication and putting one’s personal and social life on hold for an average of 3 to 5 months depending on the certification. And this can be strenuous and draining for some.

For instance, to successfully complete the CFA (Chartered Financial Analyst) program, the CFA Institute recommends a minimum of 750 hours of study for the three examination levels. But passing the exam is not enough. Most certifications also require that candidates have 2 to 4 years of work experience in their relevant fields, in addition to abiding by the respective institute’s code of Ethics where applicable, and keeping up-to-date by committing to following continuing professional education, and in some instances, recertification. But is this necessarily a bad thing and do the cons really outweigh the pros?

The scope.
Although international certification programs cover core skills and offer in-depth professional insight and know-how, some curriculums mainly focus on US laws and regulations. While a minority of the international audience might be skeptical about the benefits, Glade lays these doubts to rest by shedding light on the impact of SPHR and PHR (Senior - Professional in Human Resources) exam takers outside the US: “Some sections of the exams do refer to US law, as these certifications were developed based on the experience in the US. However, many HR practices have originated in the US and have become benchmarks for the profession, so learning about them and being tested on them will broaden one’s perspectives and enhance global credibility.”

The right one.
Choosing the right certification can sometimes be tricky… while every industry has its own credentials, the toughest part is to select the right one in a particular industry that optimally matches one’s career and professional aspirations. Professionals with years of experience are often better equipped to pinpoint the right certification for them, although guidance is often required. Fresh graduates on the other hand, are often unsure about the ins and outs of their chosen career path and hence sometimes lack adequate professional experience making them less knowledgeable when it comes to choosing the right certification. In this case, speaking to universities, colleges, conducting online research or meeting up with program specialists at training institutes who can guide them in the right direction and advise them on the different types of certification and available opportunities, is probably their safest bet to make the right choice. Below are examples of some of the leading designations in business * .

Accounting & Auditing

Accounting & Auditing probably offer the most diverse choices of certifications.
Certified Public Accountant: For a career in public or private accounting and governmental or non-profit organizations, the CPAoffers a variety of career paths. Director of International Business Operations for Becker CPA Review, Steven Chou, says it best: “Wherever you go in the world, if a business is on the map at all, chances are you’ll find a CPA involved at some level”.

Certified Management Accountant: On the managerial front, the CMAdesignation offers a broad business competency and mastery of the management-level skills for professionals in the Accounting and Finance fields.

Certified Internal Auditor: Administered by the Institute of Internal Auditors (IIA), the CIA designation is “the only globally accepted certification for internal auditors and remains the standard by which individuals demonstrate their competency and professionalism in the internal auditing field.”

Finance
Chartered Financial Analyst: The CFA remains the most highly valued qualification available internationally for finance and investment professionals. And the numbers prove it. With the CFA Institute marking the administration of its one millionth exam in June 2008, numbers continue to grow in the US and abroad, averaging a 25% increase in registered CFA candidates from FY2007 to FY2008 ** globally.

Human resources
Senior/Professional in Human Resources: the PHR and SPHR are two of the certifications administered by the Society of Human Resource Management (SHRM). With the rapidly evolving industry and increasing demand for HR Professionals, particularly in emerging countries, there is an urgent need for practitioners to get certified to be able to meet the challenges of a global economy, explains Glade.

Logistics
Certified Supply Chain Management: the CSCP designation sets the path to becoming an expert in supply chain management. As Ken Titmuss, CPIM-CFPIM-CSCP, President of The Association for Operations Management of Southern Africa (SAPICS) states: “ Supply Chain Management is evolving at such a pace we should all be spending at least half a day in the classroom a week for the rest of our lives just to try and keep up with developments” .

Treasury
Certified Treasury Professional: the CTP designation sets the standard in the financial profession by providing treasury professionals with the tools to execute functions related to corporate liquidity, capital and risk management. Gibbs explains: “More and more employers, faced with critical staffing decisions, are looking at the CTP certification as an added value in prospective employees.”

Just when you thought it was over.
Getting certified alone is simply not enough. Most designations require a set number of hours per year devoted to continuous learning to maintain the designation and right to practice. Continuing Professional Education (CPE) is a crucial requirement to stay up-to-date in an incessantly evolving economy and to remain in demand in the marketplace. A straightforward example is the emergence of IFRS: “Since IFRS will become the basis of accounting around the world in the 21 st century, it is very important for companies and individuals who wish (or need) to remain at the forefront of professional best practice to become trained in IFRS,” articulates Marc Gardiner, CPA, Managing Partner of IASeminars.

Gardiner’s potent conclusion says it all: “If not a requirement, getting trained is at a least an advantage in the employment marketplace.”

Who we are. What we do.
While certification in and of itself is pivotal, selecting the ideal source for training is also key. Morgan International represents leading international institutions and covers 7 programs for designations in Accounting, Finance, Logistics and Human Resources. First established in Beirut in 1995, Morgan extended its presence to 27 major cities in just over a decade; stretching from Bangalore to Warsaw and servicing over 3,800 candidates per year in the following programs: CPA, CFA, CMA, CIA, CTP, PHR/SPHR, CSCP and IFRS (including workshops and in-house training). For more information, visit www.morganintl.com.

* The list is not exhaustive. It acts as a reference for the programs on offer at Morgan International.

** The CFA Institute fiscal year begins September 1 and ends August 31.