The rise of microcredentials has led to challenges in matching the right candidates with the right positions due to the inability of hiring platforms to accommodate non-degree online offerings. Even though employers have increasingly adopted skills-based hiring practices, the lack of comprehensive information on the skills of job applicants remains a challenge. Some employers still prioritize traditional credentials over digital credentials, which is why some information about alternative credentials can be “lost in translation.” However, there are signs of progress in the tech-enhanced hiring ecosystem as vendors, employers, digital credential providers, and colleges are beginning to work together. Some large employers are driving a trend in which businesses are working with software partners to upgrade technology, while talent acquisition system providers are developing competencies in this area because doing so is in their interest. In the meantime, it may take a few years to fully address the gaps in the current talent acquisition process.
The Challenge of Microcredentials in Employers’ Hiring Platforms
The rise of microcredentials, such as badges, licenses, and digital credentials, has offered learners an opportunity to acquire industry-specific knowledge and improve their chances of employment. However, a recent report by Northeastern University reveals that employers and third-party intermediaries struggle to integrate nondegree online offerings into their hiring platforms.
While most employers require job candidates to apply online, some of the information about alternative credentials can be lost in translation when the software extracts and shares data. As a result, learners who earn verifiable online offerings targeted to specific industries sometimes struggle to enter the information into employers’ hiring platforms. Despite the fact that microcredentials have boomed in recent years, technology has not yet streamlined the communication process between employers and learners.
The report’s co-author, Sean Gallagher, expressed concern about the lack of detail in capturing learners’ educational and skill information, stating that “there’s valuable educational and skill information hiding in plain sight with regard to some of these candidates.” Employers’ hiring platforms and third-party intermediaries have yet to capture the richness of microcredentials.
Despite these challenges, microcredentials have gained popularity among learners who seek to improve their marketability for prospective jobs. Open Badges alone offer more than 500,000 verifiable, sharable digital credentials, and in 2021, providers issued more than 74 million badges, marking a 73 percent increase from the previous year.
In conclusion, microcredentials have become an essential tool for learners seeking industry-specific knowledge and improving their employment prospects. However, employers and third-party intermediaries need to improve their hiring platforms to capture the richness of these nondegree online offerings. As technology continues to advance, it is crucial that employers keep pace with the changes and embrace microcredentials as a means of preparing learners for the workforce.
Microcredentials Boost Employment Prospects, But Hiring Systems Fall Short
According to a February 2023 report by Coursera, 90 percent of college students and recent graduates believe that earning an entry-level professional certificate will help them stand out to employers and secure jobs after graduation. Additionally, 86 percent believe that a microcredential would be advantageous in securing a job. The report surveyed nearly 5,000 students and employers across 11 countries. Employers share similar enthusiasm, with 72 percent stating that they are more likely to hire a job applicant who has earned a microcredential. Furthermore, 88 percent believe that a professional certificate strengthens a candidate’s application.
However, traditional hiring platforms may not always capture the full value of alternative credentials. While job candidates may include information about earned degrees and certificates on their resumes, some talent acquisition systems lack a field to enter information about certificates, according to a report by Northeastern University. While approximately half of such systems have fields for identifying skills, none offer recruiters the opportunity to verify those skills.
The inability of talent acquisition systems to capture and verify nondegree, digital credentials is a missed opportunity, according to Sean Gallagher, executive professor of educational policy at Northeastern University and co-author of the study. Recruiters are left to view and evaluate documents manually, which may lead to overlooking valuable educational and skill information. Gallagher notes that “these systems haven’t been told to look for or process some added details beyond the basics like school, years of experience.”
Despite the value of digital credentials, most human resource technology companies have yet to prioritize digital credential support, the Northeastern report found. Employers that want job candidates to highlight these achievements must first invest in customizing the platform.
Jim Chilton, Chief Technical Officer at Cengage Group, emphasizes the importance of verifying credentials, stating that “people work too damn hard at getting that college degree, at getting that credential for it to be left to chance that someone can make a copy of it or claim that they have a degree or certificate from someplace they don’t.”
While most systems allow for attachments, the technology is not yet available to meaningfully change recruiter behavior, according to Rya Conrad-Bradshaw, Vice President of Corporate Markets at Cengage Group. Most recruiters only view a resume for an average of seven seconds, which leaves little time to evaluate additional attachments.
In conclusion, digital credentials have become essential in enhancing job prospects for learners. However, talent acquisition systems must prioritize their support of digital credentials and provide recruiters with the ability to verify and evaluate them automatically. With technology continuing to advance, it is crucial for employers to keep pace with these changes and prioritize nondegree, digital credentials as a means of preparing learners for the workforce.
The Rise of Hiring Platforms and Their Limitations
Long gone are the days when job seekers had to mail hard copies of their resumes to potential employers. With the rise of hiring platforms, candidates can now upload their resumes digitally, and third-party websites like LinkedIn and Indeed enable applicants to apply with just one click based on their profile information. However, while both recruiters and applicants appreciate the convenience of these intermediaries, their software can lead to inconsistencies.
According to a report by Northeastern University, résumé formats vary, and applicants use different language and methods to indicate dates on resumes and networking sites. During data transfer, information about digital credentials and skills can be “lost in translation.” As a result, recruiters may miss talented candidates.
Signs of Progress
Despite these limitations, there are signs of progress in the tech-enhanced hiring ecosystem. Large employers like Walmart are driving a trend in which businesses work with software partners to upgrade the technology, according to Jim Chilton, Chief Technical Officer at Cengage Group. They are also encouraging educational providers to comply with open standards for digital credentials.
Companies that provide talent acquisition systems, such as Workday and Salesforce, are developing competencies in this area because doing so is in their interest, Chilton noted. This provides them with a vehicle to sell more of their software.
Industry Microcredentials: Not Competition, but Complements
The rise of nondegree, digital credentials has been viewed as competition by some in higher education. However, most students (76 percent) are more likely to enroll in a degree program that offers industry microcredentials, according to a study by Coursera. This demonstrates that microcredentials are not a replacement for traditional degrees, but rather a complement.
Marni Baker Stein, Chief Content Officer at Coursera, emphasizes that offering industry microcredentials allows students to study what they love while also gaining critical skills for employment. Students can study French literature while simultaneously working towards a project management certificate.
In conclusion, while hiring platforms have streamlined the recruitment process, they have limitations in accurately capturing information about digital credentials and skills. Nonetheless, there are signs of progress as companies work to upgrade their technology and provide a better recruitment experience. Additionally, industry microcredentials are not a replacement for traditional degrees but rather a complement, providing students with the opportunity to study what they love while also gaining essential skills for employment.
Skills-Based Hiring on the Rise
A Harvard Business Review study reports that since 2017, employers have increasingly adopted skills-based hiring practices. In this method, candidates are evaluated based on their skills, often instead of traditional measures such as college degrees. However, before employers can evaluate candidates, they need comprehensive information about their skills. While there are still some gaps to close, almost every talent acquisition technology company is aware of the problem and working to solve it, according to Sean Gallagher, Executive Professor of Educational Policy at Northeastern University. He added that it may take a few years to fully address the issue.
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