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Micro-credentials are one of the fastest-growing segments within the higher education market. But why are they taking the sector by storm? And how can universities and colleges navigate this changing landscape?
Micro-credentials are short modules that focus on specific practical skills, meeting employer demands and moving people into the workforce quickly. Astonishingly, there was a 95% increase in the availability of micro-credentials between 2021 and 2022, with students in the U.S. now saying they are 74% more likely to enrol in a degree program that offers industry micro-credentials.
Many people see this development as essential for upskilling the workforce, driving the economy forward and widening access to education. Others see it simply as a new phase in the privatisation and marketisation of higher education, destroying the integrity of the sector.
Let’s analyse the causes behind the recent success of micro-credentials, the challenges they present and how to leverage them for the benefit of students, employers and institutions.
The American workforce and the traditional college-age student population are both shrinking while the demand for labour in the U.S. continues to grow. According to the US Chamber of Commerce, the number of workers dropped by 3 million from 2020 to 2022, whereas the U.S. economy reported an increase of 4.8 million jobs. With more than half of the U.S. population aged 25 or older without a bachelor’s degree, the country is simply unable to fill jobs with the skilled workers it needs. Micro-credentials are bridging the gap, driving industry collaboration, reducing the cost of skills attainment and accessing an all-important market of adult learners.
In part, the scale of the micro-credentials boom has been made possible by the disruptive effects of the pandemic – universities and colleges have needed to develop the infrastructure for flexibility and online provision, catering to people’s different learning needs outside of the traditional four-year degree. That said, higher education institutions aren’t necessarily at the forefront of the micro-credentials industry.
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The micro-credentials market is growing even faster outside of higher education – providers such as LinkedIn, IBM, Coursera, and other professional associations aren’t just riding the micro-credentials wave, but leading the boom.
You might argue that micro-credentials aren’t particularly lucrative for colleges, so who cares if they become something for these ‘third-parties’? Nor can these programmes compete with the depth of study and ‘social capital’ a traditional degree offers – surely their quick, transactional structure doesn’t hold more value to employers? The reality is, as the enrolment crisis of recent years has demonstrated, institutions can no longer rely on high school grads to choose costly four-year degrees at the scale and consistency they used to.
Secondly, employers need skilled workers to fill vacancies, and micro-credentials will increasingly become standard markers of eligibility. Thirdly, there is nothing to be frightened of – embrace the challenge. If delivered correctly, micro-credentials will enrich and expand your institution’s offering.
Developing your micro-credentials offering doesn’t mean compromising on quality or eliminating four-year programmes. The key to success in this space is integrating micro-credentials within your existing programmes, departments and the overarching strategic outlook.
Focus on building industry partnerships – In 2023, UPCEA found that LinkedIn Learning holds the top spot when it comes to employer partnerships. If supplying the workforce is a primary function of higher ed, then colleges and universities need to ensure they are top of the list for employers looking to upskill their employees. Building programmes in collaboration with employers will guarantee the relevance and quality of your micro-credentials and will transform your employability rates.
Incorporate micro-credentials into every element of your offering – micro-credentials are not just for non-traditional students who want to avoid four-year study. Many colleges are starting to see the value in adding micro-credentials to standard undergraduate programmes. The University of Texas, for example, started as a task force in 2023 with a Strada Education Foundation grant to embed micro-credentials in its undergraduate degrees. Position micro-credentials as an exciting part of the traditional degree framework, not an alternative to it.
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Target growing audience groups – Micro-credentials give you the power to expand and diversify your cohort, accessing untapped audiences. The ‘Some College, No Degree’ (SCND) population, for example, is the biggest it has ever been. As a result of the pandemic, this stop-out audience has grown to 40.4 million. However, they are increasingly difficult to convert – the SCND re-enrolment rate declined by 11.8% in 2023. Micro-credentials enable you to mobilise this audience, helping them to return to education in an affordable, efficient way.
Position yourself as ‘lifelong upskillers’ – The role of higher ed needs to go beyond educating people just once in their lives, in a four-year stint at 18-22 years old. To stay relevant, the sector needs to lead the continuous upskilling of the population. Market yourself as a provider of lifelong learning – as the experts that people and businesses turn to to help them stay on top of industry demands. No matter their level of education, people should be able to use micro-credentials to improve themselves at regular intervals throughout their working lives.
Rather than being an affront to traditional higher ed, micro-credentials have the power to build a more accessible, vibrant, skills-driven sector. If institutions and employers continue to develop and market them effectively, these programmes will bring the industry closer to what it should be – a force for progress and a place for everyone.