Value?

What is the value of a professional license? Is it something you look for before you hire someone?

Meaning

Few people really understand what it means to be a licensed professional. Typically, licensing involves oversight and regulation by a governing body or agency, some sort of standardized training, passing one or more tests to demonstrate proficiency, and ongoing training to maintain this proficiency. Architects, engineers, contractors, and subcontractors are supposed to be licensed (with a few exceptions). Note also that medical doctors, dentists, lawyers, nurses, certified public accountants, realtors, cosmetologists, embalmers, and many others all require licensing.

Requirements

The requirements for a professional license are standardized to make sure that every person in their field meets the same minimum necessary qualifications. Remember that this is the minimum requirement for entry.

For each class of professional, the way the requirements are administered is similar. But among the professions, the actual requirements are, of course, different. Related posts: I wrote a blog about using the title “architect” (requires license) a few years ago (here). I wrote about the value of hiring passionate people (here). And I wrote about how to use references prior to hiring someone in this digital age (here).

The Value has Diminished-The Data

Unfortunately, for all the work and regulation that goes in to obtaining and supporting a license, it appears that people don’t place much value on or in it when searching for someone to hire.

"Consumers tend to heavily value prices and online reputation, but not the licensing status of professionals when they're picking whom to hire," Larsen, an assistant professor of economics and faculty fellow at the Stanford Institute for Economic Policy Research (SIEPR), said in an interview published on Phys.org. Larsen, Farronato, Fradkin, and Brynjolfsson's working paper, "Consumer Protection in an Online World: An Analysis of Occupational Licensing," was released by the National Bureau of Economic Research.

A Professional Hurdle

When meeting with clients, I rarely state that I have a license (unless asked). If the subject comes up, I tell people that the license is simply a professional hurdle. It is one step or requirement in your due diligence process when vetting someone to hire. I also tell them that it is simply a piece of paper. The license provides no guarantee that someone will perform, provide, or produce quality work.

Know Who You Are Hiring

Prior to hiring someone, take the time to fully understand the quality of their work and the process they go through to provide that quality. Make sure that you both have the same definition of quality. And, while not required, it really helps if your personalities are compatible.

I know of many licensed professionals across different fields that I would not recommend you hire.

Quality Matters Most

I am licensed and my opinion is biased. I would recommend that you hire a licensed professional. However, I would choose quality over a licence every time.