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From what I've read, and considering your input, which you have expressed so clearly, confidently and authoritatively that I have no doubt about it's truth, it appears that there are indeed two separate problems: low pass rates on exams, and diminishing numbers of fully qualified of L3 and L4 instructors.
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Neither of the above is perceived as a problem in PSIA. Why someone outside the organization with "no axe to grind" is so concerned about it baffles me.
Even so a pass rate of 30% seems very low for an exam to verify that those taking have learned what you have taught them. If the purpose of the exam is to see if they have learned what you were supposed to teach them, then either the teaching needs adjustment, or more folk need to be told up front they are not ready, and effectively discouraged from taking the exam.
The bolded portion of your quote is factually incorrect. The purpose of the certification exams is to signal that, on a day, in front of examiners trained to evaluate a standard s objectively as possible, you met that standard. Full stop.
Furthermore - no one that I've talked to that's a leader of, or member of the organizations in question - thinks that the pass rate is "too low" on an average basis. (WIDE open to hearing that this is perceived as a problem, but that's not my impression/opinion).
While no one is against having more people attempt and pass high level certifications - it turns out that hard things are hard - and there is no way to make them less hard without lowering the standard.
In PSIA - exams are scored 1-6, with 4 passing, 5 being occasionally superior, and 6 being always superior.
Most people take the exam when they're at a consistently (but not always) "4" place.
Let's try numbers!
If the candidate demonstrates the task X% of the time at a "4", assuming 10 tasks - they pass the entire exam day:
88% -> ~28% pass rate
89% -> ~31% pass rate
90% -> ~35% pass rate
The actual average pass rates of the L3 in PSIA-RM is about 29-35%. This indicates to me that people are (rightly) judging they can do it ~9/10 times and then deciding to take a shot at passing, knowing full well they probably won't get the whole thing in one shot.
Going from 88% to 89% success rate on one task (at the same level "4" of performance) is days to weeks of additional training. If you manage to get 2% better at all 10 tasks you gain approximately 6% increased chance of passing overall.
Taking the test twice (without getting any better between attempts) takes you from a 30% shot to 50%. Taking the test once, passing a section or two, then focusing your training attempts on specific sections would let you double or triple your effective training time in an interval. [And note - even if someone can demonstrate each task 99 out of 100 times, *they still fail the whole thing ~10% of the time!*]
That makes it eminently rational to get pretty good, take the exam, and then focus your training where you now have objective feedback that you need it.
One other note: being able to do a task in training is not the same as doing it on exam day. It is actually impossible for a trainer to give you more than "You are consistently showing me that you can perform the task and/or demonstrate the required movements". On exam day you have to do the task *cold*, *under pressure*, with conditions that may be "unfavorable" to put it mildly. You can't simulate the exam without... taking the exam.
Of course if it's merely a gate keeper to ensure that only the top 30 percent of the best prepared and best qualified instructors get the L3, then go ahead rate on a bell curve and call yourself the best of the best.
The Standard is the Standard - it isn't graded on a curve.
There is no limit on pins awarded. Enough pins are brought to each exam so that EVERY registered candidate to bring one home.