Which is Better: A Master’s in Human Resources or PHR Certification?

Human Resources is a versatile discipline with a wide diversity of career paths. Considering such exceptional flexibility, it comes as no surprise that its professional association, The Society of Human Resource Managers (“SHRM”) offers a correspondingly vast array of voluntary certifications. Like virtually all other worthwhile life pursuits, enormous possibilities create proportionally difficult decisions about which path to pursue. Hence, an increasingly common question posed by prospective and current HR pros is whether a Master’s in Human Resources (“MHR”) or Professional in Human Resources (“PHR”) certification is best. Below is a basic guide to help you decide which option best suits your particular needs and requirements.

Major Similarities of MHRs and PHRs

Both MHR degree programs and PHR certification:

• Require a bachelor’s degree
• Provide tangible proof of specialized knowledge and training
• Increase earnings potential and/or overall income expectation

Beyond the above-listed basic commonalities, the MHR/PHR Dynamic Duo of professional credentials parts company.

Primary Contrasts Between MHRs and PHR Certification

The main distinguishing characteristic and catalyst of vehement disagreement in the long-running MHR vs. PHR debate is reducible to “impartation vs. documentation.” MHR degree programs are primarily designed to provide introductory theoretical instruction and practical skills development. By contrast, the main function of PHR certification is to demonstrate and substantiate existing expertise.

Prioritize to Strategize

As each alternative has distinct pros and cons, a contextual cost/benefit analysis is required to reach a correct conclusion about which solution is best for you. Start by identifying the underlying common motivation for both MHR and PHR pursuit. The process does not end there, however, since other factors also hold major sway in this equation.

Comparative Analysis

When making the decision of whether a MHR or PHR is best for you, it is wise to take an in-depth look at several factors. Here we analyze average salaries, the perception of education level by executive management, and the time and cost of attaining both credentials.

Realistic salary expectation ranges

Online employee benefits and compensation search provider PayScale.com reports the following statistics as of November 1, 2013:

BSHRMs with 1 to 4 years of work experience – average earnings $41,833
BSHRM with PHR and 1 to 4 years of work experience – average annual earnings $58,063
MSHRM with 1 to 4 years of work experience – average earnings $46,819
MSHRM with PHR and 1 to 4 years of work experience – average earnings $63,705

These numbers disclose a definite direct correlation between experience and earnings.

Impact significance

Other research reveals that 40 to 60 percent of middle and upper-level HR positions require or “strongly prefer” certified candidates. Nevertheless, just 13 percent of otherwise-eligible applicants possess that credential. In practical terms, this translates into command of about one-half of the HR job market by just one-eighth of the total applicant pool.

Time and money = tremendous influences

Finally, acquisition cost must also be taken into consideration to ensure calculation accuracy. The total cost of attendance at accredited MHR programs averages $35,000 over two to four years. The average total cost to obtain a PHR ranges between $1,000 and $1,500 for a ten-week course of study. (See: https://learningsystem.shrm.org/ls.html and http://hrci.org/apply/fees-and-deadlines).

Concrete Application of Abstract Information

The foregoing stats and figures represent your full repertoire of required tools to construct the best foundation of future career success. Suppose, for instance, you hold a BHRM and have been on your job for the last two decades. Ask yourself whether a $5000 maximum potential earnings increase is really worth $35,000 and four years of your life. A maximum $1,500 investment in PHR certification to boost income potential by nearly $17,000 makes much more sense – and millions of cents.

On the other hand, you may be a brand-new BHRM with little or no prior work history. If so, your best bet is getting an MSHRM and PHR certification before the ink dries on your undergrad degree. After all, $36,500 and two years is a small price to pay for $21,000 in extra income every year for the next few decades.