Press Release

Knowledge may be power, but impact is everything

18 September 2007 – ‘Who you know’ and ‘what you know’ is no longer enough to get a job, according to a report published today by the Chartered Management Institute. 

The study, based on the views of 2,229 respondents, reveals that job prospects are increasingly being influenced by an individual’s commitment to their long-term professional development.  However, it also uncovers major barriers preventing significant numbers from improving their skills.

The findings show 64 per cent of employers – and 74 per cent of individuals - believe management qualifications will grow in importance over the next 5 years.  Individuals and employers also agree that ‘proof of academic prowess’ is no longer a key driver for taking a qualification.  Key findings include:

- performance enhancer: many employers argue that having qualified managers leads to productivity gains (60 per cent).  Most highly valued are MBAs (74 per cent) and Diplomas (70 per cent)

- rising reputation: employers also suggest that providing the opportunity to gain qualifications gives the organisation an enhanced professional reputation (70 per cent).  Almost two-thirds (64 per cent) also say it boosts their ability to attract staff

- movers and shakers: an overwhelming majority of individuals (95 per cent) are motivated by the ‘portability’ offered by a general management qualification, emphasising a desire to move roles, or cross industry sectors.  Their need for ‘transferable skills’ is a key factor behind the desire to ‘get qualified’ (76 per cent).

- career passport: 85 per cent of managers believe qualifications will ‘improve chances of employment’ in the future.  69 per cent also suggested their management qualification ‘improves promotion prospects’

According to the research, the majority of respondents (84 per cent) also claim that qualifications improve ‘self-awareness’.  High numbers focus on how they have ‘helped me deal with interpersonal issues’ (66 per cent) or ‘improved my business knowledge’ (84 per cent).

However, the report shows that desire to secure formal recognition is not matched by action, with only 1 in 5 individuals holding a management qualification. 

The study suggests that low uptake is caused by a series of barriers.  One of the key difficulties is the complexity of the qualifications system, with 65 per cent arguing too many qualifications exist and 51 per cent agreeing that the different levels are confusing.

Mary Chapman, chief executive of the Chartered Management Institute, says: “The current low level of management skills is untenable, so it is encouraging to see a thirst for change.  But as the new Qualifications and Credit Framework is developed, it will be essential to ensure that clear links are established across the various other frameworks.  Without doing so the capacity for confusion will increase.”

The report also shows that the most widely felt barrier is the impact of study on managers’ time.  Many agreed that it diverts energy from other interests (56 per cent), family (53 per cent) and their work (40 per cent).  A significant proportion also said they sought employer investment, with 43 per cent seeking full-funding and 39 per cent looking for partial financial contributions.

Chapman adds: “Compared to other professions, managers are significantly under-qualified.  Yet many are giving the strongest sign yet that they want to address this situation.  Significant numbers are looking for training and development as part of their remuneration package and employers should take note of this because by offering professional development they are more likely to retain the top talent and build for the future.”

A full copy of the report, called ‘The Value of Management Qualifications’, is available by clicking here.