The Credentialing Maze

Credentials have become the coinage of the realm as labor markets demand higher levels of skills and experience. What was once confined to high school diplomas and college degrees has now become an ever-expanding range of credentials offered by schools, post-secondary institutions, apprenticeships, certifications programs, and boot camps. Unfortunately, there has been little data on what credentials exist, how portable they are, and which employers recognize them.

The non–profit Credential Engine has taken the first step in filling this information gap. It recently released a report containing what is believed to be the most comprehensive count of credentials in the labor market, finding a staggering 738,428 unique credentials that include:

  • 370,020 credentials issued by postsecondary educational institutions

  • 315,067 credentials from non-academic organizations including digital badges and online course-completion certificates

  • 46,209 credentials from public and private secondary schools

  • 7,132 credentials from MOOC providers

While this gives us a clearer picture of the credential landscape, it raises two important questions. First, an employer must recognize the credential in order for it to have value. Additional information is needed around costs and outcomes of credentials to better determine the relative value of a credential, not just for employers but also students and workers.

Second, the tendency of those engaging in education and workforce development policy is to focus solely on institutions as providers of credentials. But education organizations also must determine which credentials they will recognize. Our education and workforce systems aren’t designed or incentivized to credit prior learning. That’s an equally important piece of the puzzle to solve because credentials should be portable as students move between various providers.

Improving transparency and portability in the credentials market is a bipartisan issue. The Credential Engine report includes a forward authored by former US Secretary of Education Arne Duncan, a Democrat, and former Florida Governor Jeb Bush, a Republican, calling for greater transparency in the credentialing marketplace in order to “provide individual learners with better guidance about what credentials are available and the pathways that each opens up.”

States are beginning to heed Secretary Duncan and Governor Bush’s call for transparency. More than 15 states and regions are publishing data about education and training programs in the open source Credential Registry. However, there is more they can do. States can also take steps to better align credential data with placement and outcome data (e.g. wages, employment, jobs, etc.). They can also make sure these datasets are published in an open source format to better support systems helping students navigate credentialing pathways. The credentials market is growing. States can play a role in ensuring that it benefits students and allows life-long learning to provide better outcomes for all.