In an era where college costs continue to rise—and a growing number of graduates are finding themselves “trapped” by the undertow of underemployment—college alternatives (or at least supplements) are growing in both popularity and number. Employers stymied by skill (and equity) gaps are, likewise, looking to (or issuing) a multiplicity of new credentials in what one commentator has dubbed the “Show What You Know Revolution.”
It makes sense. While the long term economic returns on a bachelor’s degree are undisputed, other types of credentials like the so-called “Poor Man’s MBA” can boost salaries by 20%—and a growing body of research is telling us that non-degree certificates, produce real value.
Unfortunately, navigating an increasingly complex credentialing landscape isn’t easy for education consumers. And the challenge of understanding the relative value of credentials is compounded by the fact that, until recently, we had no idea how many credentials were available in the first place. But a new report issued by the national non-profit organization Credential Engine estimates that there are more than 738,000 unique credentials, of which only about half are issued by traditional “academic organizations.”
It is groundbreaking work that, according to a foreword by former Florida Governor Jeb Bush and U.S. Secretary of Education Arne Duncan “provides a rich database for policymakers, employers, educators and workers to advance our collective goal of a thriving economy that works for everyone.”
This week, I sat down with Scott Cheney, executive director of Credential Engine, to learn more about their work and the role they play in helping education consumers sort through an exploding credential landscape.
Alison Griffin: The findings of this report are striking: there are nearly 750,000 different credentials in the United States, nearly 500,000 of which are non-degree. This seems like a high number. Is it—and, if so, is that a good thing?
Scott Cheney: This is the type of question we hope people will begin to ask when they learn that there are at least 738,428 unique credentials in this country. It’s an important question, in part, because we don’t yet have the information and robust data to know the answer. Before Credential Engine was formed in late 2016, there was a lack of information about the size and scope of the credential marketplace. Not only did we not know the number of credentials, but we also lacked common definitions for the types of credentials to even have a good place to start—let alone an understanding of the value of each credential and how they compare to each other. While we are making progress, we still have a way to go in understanding whether and how well the credential market is meeting our current and future workforce needs. We hope this report will build momentum around collecting better data on value and workforce outcomes so that the market can discern the right number and mix of credential options for learners.
Griffin: It’s surprising this number wasn’t available in the past and is not more readily available now. Why is that?
Cheney: I was a bit surprised, too, when I learned that no one knew the size of the credential market. Our nation’s education and workforce training systems are as varied as our economy, with many different providers, customers and purposes. This has led to credentials being created for a variety of needs, and increasingly by organizations and providers that are not traditional secondary or postsecondary institutions. Credentials include degrees, of course, but also licenses, apprenticeships, professional certifications, non-credit certificates and badges, which are growing in popularity as a way of signaling skills. In just the past decade, we’ve seen the rise of open online courses and bootcamps for accelerated coding and technology training. To varying degrees, government and private organizations track these credentials, but prior to the formation of Credential Engine, there wasn’t a single, consistent accounting system. And while we have collected detailed data on only about 9,000 of these credentials, what we have is fully accessible to anyone.
Griffin: What is the most surprising takeaway from this year’s report?
Cheney: It’s amazing how little we know about credentials in this country. With more than 738,000 credentials, it’s impossible for any one prospective student, policymaker or employer to comprehend the credential landscape. Last year, we produced a preliminary count of credentials and found 333,114 credentials, but there were some categories, like badges and certificates, for which we couldn’t even make an educated guess. That’s part of why the number of confirmed credentials more than doubled in this report. It’s not that the U.S. added hundreds of thousands of new credentials in a year; they were there the whole time and we didn’t know. For example, we found over 315,000 credentials from non-academic organizations alone. Now that we have a better sense of the true quantity of credentials, the questions are, how do they compare to degrees and how do they connect to jobs? These are the types of questions that having open data about credentials will help us better understand.
Griffin: The number of credentials seems unthinkable to prospective students who have so many options but may not be aware they exist. The report argues that greater transparency is essential in an environment where consumers have so many options. What are three things we could do with credential transparency that we cannot do today?
Cheney: First, as you know, we need to help prospective students and jobseekers understand their potential education and training options. A universal language, such as the Credential Transparency Description Language (CTDL), can help with this, as can the Credential Registry, which is an open data resource that allows users to both publish credential data and access the information to build new resources. Such tools will be critical to helping individual users access and make sense of credential information. A number of our partners have already started to build applications that will help solve real-world challenges.
Second, credential transparency will help businesses find and assess talent. Credential Engine was founded, in part, because the business community was demanding a better way to identify talent and understand specific skills certified by various credentials. Business and industry leaders don’t know the real content of various credentials, and therefore relying on proxies—oftentimes demanding degrees for jobs that don’t actually require them. Credential transparency will provide clearer signals for hiring and promotion.
Third, credential transparency will allow training providers to build better programs. Acceleration in the economy is pushing education and training providers to use data to better ensure their program offerings are aligned with industry needs and serving students. Recent reports about high school CTE programs, for example, have highlighted widespread misalignment with employer demands—which isn’t surprising when you think about how long we’ve lacked credential data. With transparency and interconnected data systems, we can help providers understand in real time what credentials (and skills) will provide value to their students and employer partners.
Griffin: What actions can education organizations and employer partners take in response to this report?
Cheney: There are many actions that organizations can take to expand credential transparency. We want to make sure the over 738,000 existing credentials (and any new ones) are posted to the Credential Registry. By posting those credentials to the Registry, providers can make all their data open and transparent, enabling the benefits we’ve discussed. While education providers can do this themselves, there is also an important role for policymakers, who can encourage adoption of the CTDL and participation in the Registry. We currently partner with 15 states and regions that have made credential transparency a priority. Employers, associations and quality assurance providers can advocate for greater credential transparency and share credential data when it becomes available. In fact, we encourage everyone to learn more about and advocate for greater credential transparency. Making information available to students is the starting point to help them become educated consumers and make a credential decision that is best-aligned with their future aspirations.
