As PMP mentors, we always advise our students that it is in their best interest to have someone else cover the cost of their education. This strategy works well for many professionals employed by companies that value their employees’ skills and strive to have the most proficient workforce. However, in most cases, it is challenging to achieve unless the suggestion to get PMP certified comes directly from the employer.
Let’s say a mentee decides to pursue PMP certification and discovers that they need to pay $140 for PMI membership, $405 for the exam itself, and perhaps $500 to $2,000 for various courses, coaching, and mentorship. And what if they don’t pass on the first try? They would need to pay an additional $275 for each subsequent attempt. Suddenly, the cost becomes quite high for them as an individual, but it may not be as expensive for the company they work for.
Benefits for the Company
Why would a company pay for an employee’s PMP certification? Here’s what the company stands to gain:
- Enhanced Skills: By investing in PMP preparation, the company helps its project managers gain advanced skills and knowledge, directly improving project outcomes.
- Credibility and Certification: After passing the PMP exam, the project manager earns a globally recognized certification. This boosts the credibility of both the individual and the company, potentially opening doors to new business opportunities.
- Increased Efficiency: PMP training teaches best practices, tools, and techniques for effective project management. This can lead to more efficient project execution, reduced risks, and better resource use—ultimately improving the company’s bottom line.
- Standardization: PMP certification ensures that project managers follow globally recognized practices and methodologies. This standardization can enhance team collaboration, streamline processes, and lead to better project outcomes.
- Competitive Advantage: Employing certified project managers gives the company an edge in the market. Clients may prefer working with organizations that have certified professionals, reflecting a commitment to quality and professionalism.
- Employee Morale and Retention: Supporting professional development, like reimbursing PMP preparation costs, boosts employee morale and loyalty. When employees feel valued, retention rates increase, and the workforce becomes more motivated.
- Leadership Development: PMP certification requires developing leadership and strategic thinking skills, crucial for organizational success. Investing in these skills can lead to long-term benefits as certified project managers take on greater responsibilities.
- Risk Mitigation: Well-trained project managers are better at identifying and mitigating risks throughout a project’s lifecycle. By supporting PMP preparation, the company invests in risk management capabilities, reducing the chance of project failures.
- Alignment with Industry Standards: PMP certification aligns project management practices with standards set by the Project Management Institute (PMI). This keeps the company up-to-date with the latest trends and best practices in project management.
- Customer Satisfaction: With improved project management skills, the company can deliver projects more effectively, leading to higher customer satisfaction. Satisfied customers are more likely to return and recommend the company to others, driving business growth.
Drawbacks for the Company
While reimbursing the cost of PMP certification for a project manager can bring many benefits, there are also potential drawbacks for the company:
- Cost: Covering the cost of PMP certification can be a significant financial investment, especially if multiple project managers are pursuing it. The upfront expense might strain the training or professional development budget, particularly in smaller organizations with limited resources.
- Employee Turnover: After earning PMP certification, project managers may become more attractive to other employers and seek better opportunities elsewhere. If they leave shortly after the company invests in their certification, it could result in a loss of investment, knowledge, and disruptions to ongoing projects.
- No Guarantee of Success: Reimbursing the certification cost does not guarantee that the project manager will pass the exam or successfully apply the knowledge gained. If they fail the exam or struggle to implement PMP principles, the company may not see a return on its investment.
- Time Commitment: Pursuing PMP certification requires a significant time commitment for studying and attending training courses. This may temporarily reduce the project manager’s availability for project-related tasks, potentially impacting project timelines and productivity.
Let’s look at each of these obstacles and find ways to overcome or minimize them for the company.
How to Negotiate Costs with the Company Representative
- Demonstrate Long-Term ROI: Show how investing in PMP certification provides long-term returns for the company. Emphasize that certified project managers can deliver projects more efficiently, reduce risks, and save the company money by avoiding costly mistakes or project failures.
- Explore Flexible Payment Options: Negotiate flexible payment plans with training providers or certification bodies, such as installments or deferred payments. This allows the company to spread out the reimbursement costs over time, reducing the immediate financial impact on the training budget.
- Leverage Group Discounts: Discuss group discounts or bulk pricing with training providers for PMP certification courses or study materials. Bundling multiple certifications can lower the cost per employee, making the investment more affordable, especially for smaller organizations.
- Highlight Competitive Advantage: Emphasize how having certified project managers can give the company a competitive edge in the marketplace. PMP certification enhances the company’s reputation, attracts clients, and sets it apart from competitors, driving revenue growth and business success.
- Negotiate Partial Reimbursement: Propose a partial reimbursement plan where the company covers part of the certification cost and the project manager covers the rest. This approach reduces the financial impact on the company while still supporting professional development.
- Propose a Gradual Rollout: Suggest a gradual rollout for PMP certification reimbursement, starting with a few project managers or prioritizing those in key roles. This phased approach allows the company to manage costs more effectively and evaluate the benefits before expanding the program to more employees.
- Offer to Share Knowledge Internally: Commit to sharing the knowledge and best practices gained through PMP certification with colleagues and team members. Highlight how this internal knowledge transfer can enhance the overall effectiveness of project management within the organization, maximizing the company’s return on investment.
How to Address Employee Turnover Concerns with the Company Representative
- Negotiate a Retention Agreement: Propose a retention agreement with employees who receive reimbursement for PMP certification. This agreement could require employees to stay with the company for a certain period after obtaining certification, ensuring the company benefits from its investment.
- Highlight Career Development Opportunities: Emphasize that offering PMP certification reimbursement shows the company’s commitment to employee career development. When employees see that the company invests in their growth, they are more likely to feel valued and stay long-term.
- Showcase Employee Loyalty: Provide examples of how professional development opportunities, like PMP certification, foster employee loyalty and commitment. Share success stories of employees who advanced their careers within the company after obtaining PMP certification, if available.
- Address Job Satisfaction: Discuss factors that contribute to job satisfaction and engagement beyond just financial incentives. Explain how offering opportunities for professional development, such as PMP certification, can enhance job satisfaction by providing new skills, challenges, and growth opportunities.
How to Address the “No Guarantee of Success” Concern When Reimbursing PMP Certification
To handle the company’s concerns about the uncertain return on investment, consider the following approaches:
- Focus on Preparedness: While there is no guarantee of success, emphasize that investing in PMP certification equips project managers with essential skills and knowledge to excel. Highlight the rigorous preparation process, including comprehensive study materials and exam preparation courses.
- Choose Effective Preparation Courses: Select a course that tracks progress and provides reports as needed. Offer to negotiate performance metrics or key performance indicators (KPIs) linked to PMP certification reimbursement. Set clear expectations for how the company will measure the impact of certification on project performance, such as increased project success rates, reduced risks, or cost savings.
- Propose a Risk-Sharing Agreement: Suggest a risk-sharing agreement where the company reimburses the PMP certification cost upfront, with the understanding that reimbursement is contingent on the project manager passing the exam within a specified timeframe. This approach reduces the company’s risk while still supporting professional development.
- Discuss Retake Policies: Address concerns about exam failure by negotiating retake policies with certification providers. Explore options for discounted or complimentary exam retakes if a project manager does not pass on the first attempt, minimizing the financial risk for the company.
How to Negotiate the Time Commitment for PMP Preparation
- Emphasize Long-Term Benefits: Highlight the long-term advantages of investing time in PMP certification, such as improved project management skills, increased efficiency, and better project outcomes. Frame the time spent on certification as an investment in both the individual’s professional development and the company’s success.
- Discuss Flexible Study Schedules: Negotiate flexible study schedules for project managers pursuing PMP certification. Encourage them to study during periods of lower project workload or non-critical project phases to minimize disruptions.
- Set Realistic Expectations: Provide clear guidelines on the time commitment needed for PMP exam preparation, including recommended study hours and milestones. This helps project managers plan effectively and avoid feeling overwhelmed.
- Align Study Goals with Project Objectives: Encourage project managers to align their study goals with ongoing project objectives. Suggest applying PMP concepts and techniques learned during preparation to real-world project challenges, enhancing practical understanding and contributing to project success.
- Monitor Progress and Adjust as Needed: Regularly track the progress of project managers in their PMP preparation and adjust study schedules or project assignments as needed. Keep open communication and remain flexible to ensure both certification goals and project responsibilities are met.
Step-by-Step Guide to Reimbursement Negotiation
- Investigate the company’s approach to certification reimbursement.
- Find the right person who can approve the reimbursement.
- Understand the approver’s priorities.
- Prepare for the negotiation.
- Conduct the negotiation and close the deal.
- Keep the approver updated on your progress.
- Ensure both the approver and the company receive the benefits you promised.
1. Investigate the Company’s Approach to Certification Reimbursement
Start by asking other project managers or colleagues who have recently been certified. You can reach out through corporate chats, meetings, or events. LinkedIn is another great resource; many colleagues will post about their certification achievements. Congratulate them and ask about their preparation process and whether they received reimbursement.
2. Find the Right Person to Speak To
Your line manager is usually the best option, but there are other possibilities. Be creative:
- HR Department: HR may handle professional development and have its own budget for training.
- Learning and Development (LnD): LnD departments may also have budgets for effective training programs. Find someone in LnD to discuss certification reimbursement.
- Client Side: If you’re working on a client project, the client might be willing to cover certification costs if it benefits the project. Speak with your Client Success Manager, Account Manager, or a client representative you know well.
3. Understand the Approver’s Priorities
Before negotiating, understand what’s in it for the person you are speaking to. Often, the biggest benefit is that you are managing a professional development task that would otherwise fall to them. However, there may be other motivations you need to know before the negotiation.
4. Prepare for the Negotiation
Review this guide and be ready to clearly explain the benefits to the organization and the person you are negotiating with. This is key to a successful negotiation.
5. Conduct the Negotiation and Close the Deal
Your goal is to sell the idea of reimbursing your certification preparation. The negotiation has three parts:
- Outline the Benefits: Explain how this reimbursement benefits both the organization and the approver.
- Close the Deal: Ask something like, “Investing in my PMP certification will enhance my skills and directly benefit our projects and the company. Can we move forward with reimbursement for my certification prep?”
- Handle Objections: There are three possible responses:
- Yes: Great! Proceed with the reimbursement process.
- No: Ask if there’s another way to secure reimbursement, such as through HR, and explore other options.
- Not Sure: Find out what’s causing hesitation. Address any concerns using strategies from this guide to increase your chances of approval.
We hope this guide helps project managers get their professional certification reimbursed, leading to more skilled professionals in the field.