Behind the boom in micro-credentials

By many measures, the value of the traditional degree today is as strong as ever in the job market. At the same time, employers need workers who can adapt and reskill for the massive technological and business change happening across every industry. For many companies, that means focusing on skills-based hiring instead of seeking out candidates with college degrees. 

Yet with technologies like AI being such brand new territory, employers don’t necessarily know which degree alternatives to trust. They also don’t always know how to guide their existing workers toward useful educational paths.

That’s where micro-credentials come into play, according to Paul LeBlanc, former president of Southern New Hampshire University. LeBlanc now heads up the board at Matter and Space, an AI and education company that’s focused on micro-credentials. He sees short-form qualifications like Cisco certificates as more accessible and faster than college degrees. He advocates for micro-credentials as a form of continuous, stackable learning that helps future-proof the workplace and create more equitability for workers.

LeBlanc sat down with the Compass staff to talk about how micro-credentials can serve employers and employees alike.

The job market has changed a lot over the past few years. What skills are employers looking for in their employees now?

A college degree used to signal to the labor market that you were a good, all-purpose worker who could be trained by your employer as needed. Then companies began to prioritize efficiency, which meant they were less willing to spend time training employees. They wanted universities to ensure employees were workplace-ready. As new technologies develop, jobs increasingly require highly specialized skill sets. Companies are increasingly focusing on skills-based hiring instead of degrees, and so workers are beginning to embrace micro-credentials as a shorter and cheaper alternative.

Is this surge we’re seeing in educational credentials (particularly micro-credentials) making it harder to recognize authentic qualifications? 

Last time I checked, around half of all Google searches for post-secondary education are for non-degree programs. The market is absolutely swimming with these micro-credentials. But there’s not a good organizational system for classifying these credentials, and employers don't always know what to make of them.

“There’s a huge need for better advice on the employer side when it comes to choosing micro-credentials.”

- Paul LeBlanc

Employers sometimes struggle to articulate exactly what they need in their workers. They’re intrigued by skills-based hiring and micro-credentials, but they often revert back to the familiar and seek out four-year degrees. As a result, the micro-credential market is still more focused on upskilling current workers than recruiting new ones. But things are starting to change thanks to AI. We’re at the beginning of a massive transformation of our workforce.

Speaking of AI, how do you think these technological developments will impact the status of micro-credentials?

AI will displace large segments of the knowledge economy. McKinsey predicts that something like 75% of all jobs will be substantially redefined by AI. In a landscape that’s changing that fast and that constantly, going for a full degree program might not make sense. People will need to upskill and re-skill quickly, and then pivot rapidly. These shorter-term programs make sense as a way to reexamine employee education.

What are some challenges for employees looking at the micro-credential landscape?

Employees don’t always have access to high-quality guidance when choosing micro-credentials. I led a project at Matter and Space with Rewired where we surveyed non-traditional learners who had taken a short-form, professional course. In studying why they chose the programs they did, what was striking was that all of these learners had poor guidance in making their choices.

“We need systems of validation so that employers have a way to check whether a given credential is meaningful and trustworthy.”

- Paul LeBlanc

There’s a huge need for better advice on the employer side when it comes to choosing micro-credentials. Guild plays an important role here because it sits at the intersection between the employer and the student who's trying to sort that out.

How can companies know which micro-credentials to guide workers toward?

We need systems of validation so that employers have a way to check whether a given credential is meaningful and trustworthy. Employers trust certain third-party certifications — at least the ones they’re familiar with. Matter and Space is building a catalog of micro-credentials with an emphasis on stackability, so that workers who want to build toward a degree can get closer to that goal, while the ones who aren’t interested in a degree per se, can still progress in their careers.

Why should workers and companies care about stackability when choosing micro-credentials?

The idea behind stackability is that employees can move along a professional pathway while building up to a degree. Workers from underprivileged backgrounds often can’t afford to take two years off for an associate’s degree, but stackable credentials let them dip in and out of the higher ed system. Meanwhile, they’re moving forward in their current job while setting themselves up for increasingly specialized and selective future jobs — and maybe a college degree. Equality is a major factor here, because education access and inclusivity serve companies and employees alike: diverse and inclusive organizations perform better.

About Compass Staff

The Compass editors cover the most important trends impacting HR and people strategy today, translated into practical insights so you can put them to work. To receive exclusive content from Guild and our team of experts, sign up to receive the Compass newsletter.