Method for Estimating Financial Profit from Design Studies Investment
In the realm of design education, the return on investment (ROI) can be a significant factor for potential students and professionals looking to upskill. While traditional 4-year university degrees from prestigious institutions may offer high ROIs, there are other learning methods that could provide faster returns and potentially higher profitability.
According to recent data, the opportunity cost associated with a 4-year degree is substantial. With an average high school leaver's annual earnings of $30,731, the total opportunity cost over four years amounts to $114,230. However, the average cost of a US university course per year, including tuition, rent, and other living expenses, is $36,564. This means the total investment for a 4-year degree is approximately $135,912, taking inflation into account.
The ROI for a 4-year university degree is approximately 22.4%, but this figure can be higher for degrees from top institutions with incredible reputations. In contrast, traditional degrees in arts, which could include design, tend to have a negative ROI (-4.1%) over the first decade, taking about 11 years to recoup education costs, but yield a lifetime ROI of roughly 682% over a 40-year career.
For design professionals, upskilling or professional development courses can enhance earning potential. For instance, courses that teach how to communicate and demonstrate design’s business value, such as "Describing the ROI of Design", can help designers secure better roles and visibility within organizations.
In technical professions like development and UX design, experience gained in the real world is often preferred over any amount of paper. However, accelerated skill training methods like coding bootcamps and similar programs focused on in-demand skills provide fast ROI by enabling a quick transition to high-salary roles. These programs typically cost around $15,000 and have job placement rates around 90% within six months.
The Nielsen Norman Group offers a series of one-day UX courses for transitioning into the world of UX, with a 7-day program costing $4,957. Over 20 years, the return on investment (ROI) for this classroom training is approximately 644%. This is a substantial profit-to-investment ratio, especially considering the rapid pace at which the UX industry evolves, making continuous learning essential.
In conclusion, while traditional design-related degrees may yield positive but delayed ROI over a full career, targeted professional development programs and accelerated skill training methods tend to offer faster returns and potentially higher profitability relative to their smaller investments. The profit-to-investment ratio improves substantially when education is closely aligned with employer needs and business impact.
It's important to note that calculating return on investment for learning is a useful way to understand potential payoffs and risks of any form of learning. However, individual outcomes may vary, and the impact of a 40-year-old learning event is diminished in the ROI calculation due to the use of present value instead of future value.
Learning for learning's sake has a lot of value, but when investing in future career, ROI is a vital measure of the value received for the investment. Certifications, such as those provided at the end of the Nielsen Norman Group's courses, may help persuade employers of their value, potentially leading to a higher salary.
References:
[1] Payscale.com, ROI Report: Bachelor's Degree in Arts and Design [2] Harvard Business Review, The New Rules for Executive Education [3] Interaction Design Foundation, Describing the ROI of Design [4] Course Report, Coding Bootcamp ROI Analysis [5] Nielsen Norman Group, UX Courses and Training
- UX design and interaction design skills can provide quicker returns on investment (ROI) compared to traditional 4-year university degrees, especially given the substantial opportunity cost and high investment associated with the latter.
- Investing in professional development courses, such as those focused on demonstrating design's business value or offered by the Nielsen Norman Group, can enhance a design professional's earning potential and have a substantial profit-to-investment ratio, benefiting from the rapid pace of the UX industry's evolution.
- Accelerated skill training methods in technology-related fields like development and UX design, like coding bootcamps, offer a fast ROI, enabling a quick transition to high-salary roles, at a lower cost compared to traditional 4-year degrees, while certifications from programs like those offered by the Nielsen Norman Group can help persuade employers of their value and potentially lead to a higher salary.
