Licenses vs. Certifications — Why the Difference Matters More For Your Career Than You Think

You’re ready to get ahead in your industry, land a big promotion or lock in a role. But how can you prove that you deserve more money and responsibility?

Many professionals are stuck, trying to decide if they need to pursue a specific credential to advance in their field. I’ll go ahead and spoil the ending — you absolutely need a concrete way to prove your competence in an increasingly competitive job market.

But should you put your time and money into obtaining a license or studying for an industry-specific certification? There are considerations to weigh for both in understanding what makes the most sense for your career goals.

Understanding the difference between a license and a certification

Think of a license like the floor of your career, while certification is the ceiling. Licensing is all about public safety. Industries that require licensing need to ensure that anyone working in the field has a basic level of knowledge and skill to keep people safe and operate within a defined scope of practice.

A certification usually comes with lower stakes, but can be equally as expensive and time-consuming to obtain as most licenses. A certification signals to the market that you’re a better-prepared, more specialized expert than others with the same degree or license.

If you wanted to work as a drug addiction counselor, for example, you would first need a state-issued license for clinical practice in social work or professional counseling. From there, professionals can pursue additional credentials in addiction or substance use disorder counseling. Licensure establishes the legal right to practice, while certification signals specialization, advanced training or expertise within a field.

Choosing the right credential for your career

If you want to move into a specific industry, start with a license. That’s your entry into the field and a baseline requirement. Nurses, electricians, social workers, teachers and cosmetologists need a license to begin working in any of these fields.

Once you have a license or if you’re interested in advancing in a field that doesn’t require one, certification would be the next goal. Only commit to pursuing certification if you feel confident it’s worth your time and money, because it will take a lot of both.

Earning a credential is one of the best ways to highlight your grit, tenacity and time management. It’s proof that you are both committed and knowledgeable, two highly desirable traits in a team member.

When you have the license, degree or experience to work in your chosen field, choosing to become certified will help you stand out. Just make sure you’re in it for the long haul before you kick off your certification pursuit. It’s not worth the investment if you’re not going to stay in the field or follow through with passing the required exams.

Choosing the wrong path

Too many smart, capable professionals end up unemployable because they set their sights on a field without being aware of the initial licensing requirements. Before you start debating between a license and a credential, make sure you understand the requirements for the job you want.

Licensing is often a heavy, slow process. I see a lot of professionals who realize too late, after spending years getting a license, that everyone in their field has a license, and it’s not enough. They need a certification if they want a chance of standing out.

Now, let’s take a further step back for a minute. Prior to starting any work toward a license or certification, it’s crucial that you commit to the prep and exam process. The road to higher credentials is littered with failing scores.

I know firsthand how painful it is to spend months studying only to fall short. When I worked in aerospace, I failed the fifth and final exam of a massive certification not once, but twice — by a single point both times. I was single-mindedly committed to this certification (and the raise my manager had not so subtly dangled, contingent on passing) that I figured out a better way to study and passed with points to spare on my third attempt.

That experience actually shaped my entrepreneurial future, but that’s a story for another time. The important point here is that there is a very real cost of going after a license or a certification. Make sure you are in it to win it, even if you fail multiple times, before you choose either option.

Setting yourself up for success

If you’re ready to advance in your career, start with a license to build a solid foundation, then strategically pursue the certifications that will allow you to specialize and stand out within your field.

When you know where you want to go — becoming a certified rehabilitation counselor or a board-certified behavior analyst, for example — you can focus on the right exams without wasting time or money on certifications you won’t need or use.

Certification exams may be standardized, but every journey from the first prep question to that passing score is different. Once you set your sights on earning a certification, anchor yourself to the reality that you can do this. You’re choosing to go above and beyond to separate yourself from the competition and prove that you’re the best talent for the next role or promotion.

And once you pass your certification exam, you’ll have the string of letters or acronym in your title to prove it.