The Pulse of Higher Ed

In the fast-evolving landscape of higher education and workforce alignment, non-degree credentials are surging in popularity. This trend is largely a result of baccalaureate degrees that are not adapting quickly to address more immediate market needs, coupled with a skepticism about the value of the degree. In place of bachelor’s degrees, students are seeking more modular, stackable educational pathways that can support them in their ability to adapt to changing job market conditions. Stackable credentials are also critical to the “Some College, No Credential” (SCNC) market, which reached a total of 36.8 million under the age of 65 in the U.S., up 2.9% from the previous year. Recent research from UPCEA and StraighterLine found that 76% of SCNC adults said being able to earn alternative or microcredentials that could stack toward a degree would increase or greatly increase their interest in completing their degree.  

Major employers, including government entities, have recently determined that a bachelor’s degree may no longer be required for entry into some positions. If the degree isn’t required, non-degree, skills-based training becomes increasingly important to help employers to find and hire the right candidates.  Research from UPCEA and Collegis Education has shown that companies with external partnerships that provide employee training or professional development increased from 54% in 2022 to 68% in 2023, and among those without existing relationships, 61% of companies would be interested in developing these partnerships.  

From microcredentials to digital badges, these programs promise agile, skills-based learning to meet the demands of modern learners and employers alike.  But here’s the problem: nobody agrees on what to call them. 

What are Non-Degree Credentials? 

The terms alternative credentials, microcredentials, certificates, badges, and more are used interchangeably across institutions, creating confusion for the very people they aim to serve. It’s a bit like the old “po-tay-toe or po-tah-toe” dilemma—what’s in a name? 

Let’s dig into why terminology matters, what the leading voices in credentialing are saying, and how UPCEA is shaping the future with credential innovation. 

It is generally agreed upon that non-degree credentials refer to structured learning opportunities that do not immediately result in a traditional degree, such as a bachelor’s or master’s and include: microcredentials, certificates, digital badges, industry certifications, and bootcamps or short-term training programs. These offerings can be credit-bearing, non-credit, stackable toward a degree, or aligned to specific skills and workforce needs. Unfortunately, there isn’t one universal definition for each of these and the time commitment, rigor, and outcomes can vary.   

The Lumina Foundation refers to them as “short-term” credentials, including college-level certificates and industry-recognized certifications, and notes that they generally take less time and money to earn than degrees.  Lumina goes on to say that credentials meet their benchmarks for quality if they: 

• Lead to meaningful employment
• Serve as a steppingstone to career advancement, higher pay, and future opportunities
• Provide a pathway to continued education training—and lifelong learning 

What do you call non-degree credentials? 

In August 2023, UPCEA polled its members on what terminology they use for non-degree credentials. Unsurprisingly, the responses were all over the map.  94% of members responding to the poll indicated that they offer programs, such as badges or certificates, that are outside of the scope of traditional degree programs and credit-bearing certificates.  However, what they called them ranged from microcredentials (36%), alternative credentials (24%), non-degree credentials (13%), competency-based credentials (6%), skills-based credentials (6%), complementary credentials (5%), and other (11%).  This variance points to a fundamental issue in the space: Lack of standard definitions makes it harder for learners to navigate options and for employers to assess value. 

What is an Alternative Credential, really? 

At UPCEA, we’ve historically referred to microcredentials and alternative credentials to describe this growing sector. But these terms didn’t quite capture the full picture. Many of UPCEA’s member institutions are innovating with credentials – adapting credit-bearing programs to shorter, targeted, skills-based learning modules and/or creating new short-form skills-based learning programs.  It seemed to us that the terms microcredential or alternative credential didn’t properly reflect the depth of the work happening in this space, which offers learners multiple on and off-ramps to learning throughout their career. That’s why we’ve shifted to using the term: Credential Innovation. 

What is “Credential Innovation” in higher education? 

Because today’s programs go far beyond the binary of credit vs. non-credit. As noted, institutions are thinking about these credentials as a way to create flexible entry and exit points for learners to “earn and learn” throughout their lives.  Members are offering stackable pathways from non-credit to degree programs, allowing learners to build skills that contribute to meaningful employment while they pursue their education.  Additionally, institutions are working with employer partners to design industry-aligned certifications, helping them to meet the rapidly evolving needs of their organizations with agile, skills-based training.   

Credential Innovation captures the richness and diversity of this space. It speaks to the intentional design, employer alignment, and learner-centric approaches that our member institutions are pioneering to serve learners in targeted ways over a continuum of learning.   

How do we strengthen and add clarity to Credentialing Innovation in higher education?  

Several leading organizations have stepped in to bring structure and shared language to this space. The Education and Employment Research Center in the Rutgers School of Management and Labor Relations has developed a primer on non-degree credentials to support its work on a noncredit data taxonomy—a critical step for tracking and measuring these programs. Workcred has developed a helpful guide that explains how different credentials compare and what value they provide and Credential Engine is mapping the credential universe and building transparency into the skills and competencies they confer. 

These efforts all aim to standardize, clarify, and simplify what is currently a fragmented and confusing landscape. 

Why does the definition of Credential Innovation matter? 

In the quest for credential innovation, clarity and transparency are still essential.  There is a need to better align short form, skills-based programs to workforce training needs.  The World Economic Forum publishes an annual “Future of Jobs” report that identifies the jobs of the future and the skills needed to get those jobs.  Credential innovation will be a key way to close the gap between the jobs of the future and a trained workforce. Employers must understand the credential to ensure that it meets their needs and allows them to assess candidates and recognize verified skills.  To best align credentials with workforce needs, institutions should engage employers. This will ensure that programs fill real-world talent gaps, boost learner employability, and strengthen corporate partnerships.  This will also help to ensure that learners understand the credential they’re earning, how it stacks to other learning modules, and how it leads to future opportunities.   

Lastly, institutions need clarity to create coherent credentialing ecosystems that are aligned with their mission and the market. This will prepare institutions to best partner with employers and provide learners with clear and transparent outcomes.  This will also enable institutions to provide comprehensive learner records that are universally understood by employers.   

What does all of this mean for my institution and my work? 

Whether you call them alternative credentials, microcredentials, badges, or certificates, one thing is clear: 

✅ Non-degree programs are here to stay. 

✅ They are critical tools for economic mobility, lifelong learning, and workforce development. 

✅ And most importantly, we need to be transparent and intentional about what they are and how we talk about them. 

While it takes time to develop a taxonomy and define the various types of credentials, it is important foundational work.  Organizations are actively seeking to provide standard definitions to support institutions, learners and employers.  Use this work as a guide for your own institutional planning.  Consider sources to keep you connected to this evolving landscape, such as UPCEA’s Innovative Credentials Network, a community advancing the future of non-degree learning. This network brings together leaders from online and professional continuing education who are defining the future of education and creating impactful, workforce-relevant credentials. 

 

Stacy Chiaramonte is the Senior Vice President of Operations and Strategy for UPCEA’s Research & Consulting division. Prior to joining UPCEA, she spent 13 years at Worcester Polytechnic Institute, most recently as the Associate Vice President of Graduate and Professional Studies.