The Shortest Distance Between Two Points Isn’t Always a Straight Line
Shifting perceptions, rising costs, rapid technological advancement, and the introduction of new learning modalities confirm that education need no longer be viewed as a one-way, linear path. A 2023 survey by HolonIQ showed that 95% of respondents (from higher education, industry, and government) agreed that, “In the future, micro-credentials are likely to be integrated within most university degree programs,” while the chart below illustrates their nearly vertical growth trend.
Source: From Stackable to Portable: Credentialing in Education and Work. Global Skills Week.
Courses That Offer More Than Just a Grade
The benefits of skill-specific certifications are well-documented. Here’s a quick snapshot of their value for students, institutions, and employers:
| Benefit | For Students | For Institutions | For Employers |
|---|---|---|---|
| Flexibility | Self-paced, supports work/school/life balance,adjusts to learning style | Attracts underserved and diverse learners | Access to upskilling for current employees |
| Workforce Alignment | Gain in-demand skills, improve hirability, enter workforce sooner | Ensures relevancy, guides updates, builds relationships | More qualified candidates, access to collaborative upskilling |
| Accessibility | Enter/exit at multiple points | Appeals to a broader base, helps with retention | Broadens prospect base, supports lifelong learning |
| Cost | More affordable, pay-as-you-go approach | Efficient, low delivery cost, attracts new prospects | Reduces on-boarding and up-skilling costs |
Micro-credentials are critical in industries where rapid advancements require continuous learning, such as technology, healthcare, and energy. They can also be applied to enhance in-demand “soft” skills such as critical thinking, communication, teamwork, and leadership through applied, context-rich coursework.
What’s Really In It For Institutions?
To oversimplify, the main benefit of micro-credentials is to make learners more valuable to industry. But, what are the benefits to universities? Any new offering takes time to develop, review, and approve, and of course, costs money. So, what types of return can institutions expect from investing in these new offerings?
Expanded Traditional and Lifelong Learning Enrollment
Micro-credentials attract all types of students and offer underserved and overburdened learners a chance to fit higher education into their lives. The interest and engagement of industry also expands the audience for continuing education and certification.
Financial Benefits
Modular credentials can be efficiently reused and adapted across multiple pathways. Remote modalities incur less infrastructure and operational costs, and increased retention reduces lost tuition revenue. In addition, some states incentivize these programs through performance-based funding models.
Institutional Innovation and Collaboration
Stackable credentials encourage cooperation between institutions—such as credit transfer agreements and joint programs—and the adoption of digital credentials and blockchain technology for issuing, verifying, and storing them pushes universities to innovate.
Engagement with Industry
Collaboration with industry promotes ongoing program relevance, increased placement rates, and broader access to apprenticeships and internships while opening the door to other types of engagement such as research, knowledge exchange, and technology transfer.
Increased Retention/Completion
Students who augment their degree programs with stackable credentials are more likely to complete their degrees, as each credential is a stepping stone and confidence booster. In addition, programs designed to meet the specific needs of industry give learners an added level of confidence in pursuing employment.
Proceed with Caution
As with any innovation, the rapid rise of non-degree certifications comes with some growing pains. In order to maximize impact, institutions must work closely with industry to ensure timeliness and relevance, but they should also be aware of the challenges that come with this modular approach to learning.
Setting Realistic Learner-to-Earner Expectations
The popularity of stackable credentials may lead students to think they represent a quicker, cheaper, easier path to gainful employment and higher wages, but stacking alone doesn’t guarantee these results. To help students make informed choices, we must provide them with clear information on the career and earnings potential of different credentials and pathways.
Potential for Diversion or “Off-Ramping”
The flexibility of stackable pathways with multiple exit points can sometimes inadvertently divert students from degree completion in favor of immediate reward. There is also a risk that unguided students may accumulate credentials that don’t build toward meaningful outcomes.
Quality, Consistency, and Portability
In the absence of standards for universal portability and recognition, quality has become highly contextual, assessed in relation to the goals of learners, employers, and providers. Continued collaboration between government, higher education, and industry is needed to address issues of quality, trust, and portability at scale.
Complexity and Information Gaps
While ultimate flexibility is one of the hallmarks of non-degree certifications, it creates a virtually endless list of possible combinations of degree and non-degree credentials. Developing learning plans that address each individual’s unique situation while setting them up for success requires specialized counseling skills provided either by human or AI guides.
Micro-Certification, Macro Impact
Non-degree credentials are here to stay—and they bring big potential. The team at Noodle can help design stackable programs that blend hard and soft skills, align with industry needs, and meet learners where they are. Let’s build the flexible, career-connected pathways today’s students demand.
