Leveraging Professional Designations for a Skill-Based Workforce

The modern job market is rapidly evolving, and skills are of paramount importance. In the quest to distinguish oneself amidst a multitude of equally qualified contenders, professional certifications have become indispensable assets for both individuals and organizations. Udemy’s 2024 Global Learning & Skills Trends Report reveals the global shift towards a skill-based paradigm, and professional certifications will play a pivotal role in supporting professional development and nurturing a highly skilled workforce.

By Jennifer Tracy, C.I.M., C.Mgr. | Chartered Managers Canada

Many organizations are applying skill-based models for recruitment and upskilling their existing workforce, prioritizing a focus on the skills essential for job performance rather than focusing on how those skills were acquired. It's vital to differentiate between these approaches because the latter risks obsolescence, whereas the former fosters an equitable workplace, creating opportunity for employee development and facilitating organizational growth and adaptability. According to Deloitte, three out of five business executives believe new technologies, like AI, will be a primary driver of their organization moving to a skills-based approach. It’s vital that companies focus on developing the skills of their employees, because those who are unable or unwilling to will be left behind. It can appear an overwhelming task for team leaders and managers to stay current on the latest industry trends and most in-demand skills, but there are industry experts they can turn to.

Issuing bodies for professional designations, such as CIM | Chartered Managers Canada, are a great resource for employers to tap into for a verified skilled-candidates, or professional opportunities to develop their workforce. Many offer corporate development programs to upskill their employees, through strategic partnerships, micro-credentials, coaching or training opportunities. Professional designations encompass a wide array of fields, including management, finance, technology, healthcare, HR and many others. By obtaining professional designations, employees can easily demonstrate their expertise, proficiency, and commitment to professional excellence to existing or potential employers within their industry, while also allowing those credentials to be quickly verified through resources like digital badges.

Let’s look at some ways these designation issuing-bodies contribute to the development of a skill-based workforce:


Standardization of Skills
Professional designations establish the benchmarks for skills and competencies within specific industries. They provide the framework for the core knowledge areas and skill sets required to excel in a particular profession. This standardization ensures that professionals have the necessary expertise to meet industry-demanded skills and perform effectively in a role.


Continuous Learning and Development
Obtaining a professional designation can require specialized diplomas or degrees, professional experience, exams, or evaluations. Once obtained, maintenance of these certifications will require ongoing professional development activities (e.g., Professional Development Units - PDUs). This requirement ensures the individuals are staying updated with industry trends and are committed to ongoing skill enhancement and lifelong learning. By investing in professional development, individuals don’t just improve their own abilities but also contribute to the overall growth and competitiveness of the workforce.


Enhanced Credibility and Recognition
Professional designations and certifications provide credibility to an individual's resume and validates their expertise to employers, clients, and colleagues. Designations are tangible proof of competency, skill set and commitment to professional excellence, which can significantly enhance career prospects and job opportunities. In a 2021 survey by CIM | Chartered Managers Canada of their members, 89% of respondents found that holding a professional designation led to greater recognition and respect within the industry. In addition to being a trusted source of information and knowledge, professional designations can also open doors for networking and career advancement.


Alignment with Industry Demands
In a skill-based economy, where employers are prioritizing specific competencies and qualifications, professional designations help bridge the gap between academic education and industry requirements. By aligning academic credentials with real-world skills and knowledge, these certifications ensure professionals are equipped with the necessary expertise to thrive in dynamic work environments. As a result, organizations can confidently recruit certified professionals who possess the skills essential for achieving business growth and success.


Promotion of Professionalism and Ethical Standards
Many professional designations include codes of conduct and ethical guidelines that members must adhere to. By upholding these standards, certified professionals demonstrate integrity, accountability, and a commitment to ethical practices in their work. This fosters a culture of professionalism and trust within the workforce, enhancing the reputation of both individuals and their respective industries.


Global Mobility and Recognition
With the increasing globalization of industries, professional designations offer individuals the opportunity for international mobility and recognition. Many certifications are recognized through reciprocity agreements and valued worldwide, allowing professionals to pursue career opportunities across borders and beyond their own domestic markets. Global recognition enhances the versatility and competitiveness of the workforce, facilitating greater collaboration and a global skills exchange.

Korn Ferry projects a talent shortage of over 85 million individuals by 2030, potentially leading to unrealized annual revenues of around $8.5 trillion if left unaddressed. A proactive approach involves continual skill enhancement and expansion of the workforce's skill base. Industry leaders are presently confronted with the difficulty of systematically and efficiently evaluating their teams' proficiency in alignment with industry benchmarks. Accredited skills validation via assessments, certifications, professional designations, and badges are pivotal in supporting professional development and developing a highly skilled workforce in today's skill-based economy.

Specifically, professional designations empower individuals to thrive in their careers while driving innovation and growth in their respective markets. This is achieved by setting standards, promoting continuous learning, enhancing credibility, aligning with industry demands, upholding ethical standards, and facilitating global mobility. As the workforce continues to evolve towards a skill-based model, investing in professional development through recognized certifications and designations remains instrumental in staying relevant, competitive, and future-ready in the dynamic landscape of the modern workplace.


Resources: 
Udemy - 2023
2024 Global Learning & Skills Trends Report: Top Trends for the Future of Work
https://business.udemy.com/2024-global-learning-skills-trends-report/?utm_source=organic-search&utm_medium=google 

Deloitte - 2022
The skills-based organization: A new operating model for work and the workforce
https://www2.deloitte.com/us/en/insights/topics/talent/organizational-skill-based-hiring.html

Korn Ferry – 2018
The $8.5 Trillion Talent Shortage: Future of Work – The Global Talent Crunch
https://www.kornferry.com/content/dam/kornferry/docs/article-migration/FOWTalentCrunchFinal_Spring2018.pdf

Ciphr – 2023
Realising your ‘people potential’ through skills gap analysis
https://www.ciphr.com/blog/skills-gap-analysis#:~:text=Skills%20gap%20analysis%20empowers%20organisations,'

McKinsey & Company – 2022
Taking a skills-based approach to building the future workforce
https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/taking-a-skills-based-approach-to-building-the-future-workforce
 

About the Author:

Jennifer Tracy is an employee of CIM | Chartered Managers Canada and holds the C.I.M. and C.Mgr. professional designations. She has been an employee of the CIM since November 2010 as Manager of Communications and Administration. She has worked in finance, legal and administrative roles in Canada and England. Having a diverse career and educational background in legal administration, management, communications, and marketing, she has gained key insight into adaptive and forward-thinking management practices which inspire her submissions for the Canadian Manager magazine.