In 2011, Scott Young took on a challenge that puzzled many of his peers. He would attempt to complete an MIT computer science degree without enrolling in the elite Boston-based university, using free materials that MITposted online. Young built a curriculum using recorded classes, did the necessary assignments and exams mirroring the restrictions and conditions that MIT students were subject to. He graded everything himeself, using the solutions and marking schedule that MIT made avaiable. In the end, he 'completed' the equivalent of what an MIT degree might look like without paying any tuition fees.
Young's approach to education might be an unusual one and it's important to note that he undertook the project out of curiosity rather than as a training mechanism for a programming career, he did not obtain an 'official' MIT degree. Yet as the cost of university education continues to go up, many wonder whether return on investment is worth it and if there might be alternative paths to job success.
Enter micro-credentials. While higher education and human resources experts all have slightly different interpretations of what they are, many agree that the concept has emerged in response to the skill gap caused by new technologies. Essentially, micro-credentials are bite-sized pieces of education, whether an online course, bootcamp cerfificate or apprenticeship from a traditional university, specialist training provider or on line learning platfrom.
Marty individuals already use micro-credentials to broaden their skillsets. Still, some have suggested that in the future, a prospective employee might be albe to 'stack' these credentials together in place of a university degree. The idea is that it would be more accessible and provide a more affordable perhaps more targeted-path into employment.
Simon Nelson, CEO of FutureLearn, a UK-based learning platform that partners with universities to provide massive open online courses (MOOCs), believes that micro-credentials arose out of three global "macro trends". One is the rapidly growing demand for high-quality higher education in developing societies, while the second is the digital transformation that has taken place in many industries. This change is "worsening the traditional skills gap", says Nelson, and universities aren't providing the training for the "range of new skills that are in high demand". The third factor is the digitisation of the higher education sector, he adds. It's no longer enough to obtain a degree, having a career now requires people to upskills continuously, yet "people can't take the time out of their lives to attend physical establishments."
Sean Gallagher, the founder and excutive director of Northeastern University's Center for the Future of Higher Education and Talent Strategy, says that global economic expansion in the technology fields has "really highlighted the fact that there is a gap between the supply of people in the workforce coming out of university and credentials employers are looking for." This isn't unique to developed markets like the US and the UK; such gaps can be seen in the Malaysian education system, for example, as well as Latin American economies like Colombia.
In the US, where there is currently an extremely labour market, employers are increasingly looking beyond college graduates. Shawn Thorne, partner at global talent management firm True, says he's been asked by clients to target candidates from non-traditional backgrounds. "I think that these micro-credentials are a piece that companies use in order to advance their candidate pool," he says, tapping into talent their competitors aren't necessarily considering.
Some micro-credentials, such as coding bootcamps, might have been developed to fill the gaps that universities can't, and in turn might be perceived in relevant sectors as good alternatives to traditional degrees. But according to research that Gallagher and his colleagues conducted in 2018, that doesn't mean university degrees don't have significant value.
"Data shows that college and university degrees are still valued and demanded in the job market. They continue to give their earners economic returns," says Gallagher. When he surveyed 750 human resource leaders in US companies across various industries, Gallagher found that more organizations were moving towards skills-based hiring. But many of the applicants were degree-holders who had obtained micro-credentials to supplement their core qualification, rather than accumulating certificates and bootcamps as an alternative. Even when you look at coding bootcamps, Gallagher syas, "It's more of a post baccalaureate phenomenon, a little bit like a master's degree, but a shorter version."
Gallagher says he can see a time when micro-credentials might serve as a substitute for university degrees, but believes it will vary by industry. He imagines an ecosystem where micro-credentials stand in for degrees in certain areas, but act as a supplement to degrees in others. It's still very early days, he stresses. For employers to buy into micro-credentials as an alternative, there needs to be data that proves employees with micro-credentials can perform better, or at least just as well as those with university degrees. "That type of data doesn't exist quite yet," says Gallagher.
Gallagher also emphasises the importance of setting policies and standards for micro-credentials, something that he believes is currently lacking. Micro-credential providers need to do a better job for making it clear what their certificate or course comprises and delivers, he believes.
Jo-Ann Rolle, dean at the School of Business of the City University of New York, admits that universities and training institutions need to do a better job of collaborating with industry professionals to make sure that industry needs are being met, at the pace they need it to be. "Industries are changing faster than anybody can handle, including the industries themselves," says Rolle. Noam Mordechay, vice president of Enterprise Innovation at AI-driven hiring platform Gloat, agrees. "We need more connections discussions between industries and universities, where on-the-job-learning is part of the curriculum."
It's worth nothing that a number of micro-credential providers do design their courses in consultation with industry players. Udacity, for example, built its short online credential programmes with the help of companines like Facebook, Google, AT&T and Saleforce. Many universities are also partnering with micro-credential providers to provide alternative qualifications. In Canada, government-funded nonprofit eCampusOntario is currently working with universities and colleges to develop micro-credentials in collaboration with industry partners. According to the Northeastern report, many employers view industry validation of a micro-credential as a way of assessing its quality.
Those in the hiring space believe that a university degree will always have some value to employers. But rather than being a requirenment, it could be just one of the many factors that an employer considers when assessing a candidate. Michelle Armer, chief people officer of online job search platform Carrerbuilder says, "I think having a formal degree is always an asset. it's just less of a barrier."
